CluenexThe Clorox Company CLX
The Clorox Company scores weak on business quality (4.1 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What The Clorox Company does
Clorox sells cleaning and household products, relying on retail stores and grocery chains to reach everyday shoppers. The business depends on brand loyalty to keep shelf space.
- What it does best
Clorox dominates household cleaning through iconic brands that command shelf space, posting a gross margin of 42.3% that outpaces peers like Kimberly-Clark at 37.6%. This pricing power stems from decades of consumer trust that competitors cannot easily undercut.
- The main risk
Net debt has doubled to $5.0B while free cash flow dropped to $405M from $761M last year, leaving little margin for error if cost pressures persist.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 13.2% with a net margin of 8.7%. Profitability remains under pressure from shrinking revenue, showing weaker efficiency as scale fades.
Brand loyalty locks in everyday consumers, driving a gross margin in the top quartile of its sector at 66th percentile. Rivals face massive marketing hurdles to displace these household names.
Revenue dropped 5.4% to $6.7B, continuing a downward slide from $7.4B in 2023 as volumes contract across core segments.
Total debt sits at $5.1B against $143M in cash, supported by an interest coverage of 6.8x. Free cash flow fell to $405M from $761M last year, showing a softer balance sheet.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on CLX
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
The Clorox Company scores weak on the Cluenex quality check (4.1 of 10), measured against its own industry. Profitability is fair, moat strong, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 4, 2026.
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Cite this page: Cluenex, “The Clorox Company (CLX)”, https://cluenex.com/stocks/clx/, data as of Oct 10, 2026.