The Clorox Company (CLX)
Quantitative Summary
DeterministicAt 14.6x earnings — a 55% discount to the sector average of 32.6x — CLX is in the lower valuation range. Financial health metrics are strong: Piotroski 7/9, Altman Z 3.5 (above 3.0 safe zone threshold). DCF fair value of $273 implies 164% upside from current prices based on model assumptions.
Generated deterministically from quant metrics and financial statements. Not a recommendation.
Algorithmic Teardown
AI-GeneratedThe fundamental economics of this consumer defensive name reveal a capital allocation machine generating substantial value, evidenced by an ROIC-WACC spread of 17.6%, indicating robust efficiency in deploying equity relative to its cost of capital. The DuPont decomposition underscores that the exceptionally high 168.1% return on equity is driven primarily by significant financial leverage (equity multiplier of 11.54x) rather than operational expansion, as revenue growth remains stagnant at 0.2%. Despite this lack of top-line momentum, quality metrics remain strong with a Piotroski F-Score of 7/9 and a Beneish M-Score of -2.46 suggesting low earnings manipulation risk, while the Altman Z-Score of 3.6 points to moderate solvency concerns given the high leverage ratio inherent in such consumer staples businesses.
Valuation analysis presents a stark divergence between current market pricing and intrinsic value models. Trading at 17.2x forward earnings, the stock is priced approximately half its historical average and significantly below the sector median of 34.2x, implying the market may be over-discounting the business relative to peers. A discounted cash flow model estimates a fair value of $296, suggesting an implied upside of 185.7% from current levels if long-term free cash flow growth materializes at the modeled 2.4% annual rate. However, this valuation premium assumes execution risk given that the stock has underperformed on profitability factors relative to its size and book value in recent periods.
Risk assessment highlights a complex alpha profile where traditional factor tilts are mixed with strong profitability characteristics. The Fama-French alpha of -20.12% indicates substantial downside drift over the measurement period, yet this is partially offset by a robust Profitability Factor (RMW) score of 0.309, confirming that earnings power remains a primary driver despite recent underperformance. With neutral insider flow and a value factor exposure near zero (-0.023), there are no clear signals of management accumulation or significant style-based mispricing to guide immediate directional bias. The investment case rests entirely on whether the market can reconcile high leverage with sustained margin expansion in a low-growth environment.
Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.
DCF Sandbox
Interactive5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.
The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 0% YoY revenue.
Sensitivity Matrix
| TG ↓ / WACC → | 6.1% | 8.1% | 10.1% |
|---|---|---|---|
| 2% | $363 | $231 | $165 |
| 3% | $475 | $273 | $186 |
| 4% | $695 | $336 | $214 |
Center = base case. Green = >10% upside, Red = >10% downside vs $89.63.
Pre-computed DCF: WACC=8.1%, terminal growth 3%. Fair value $273 (+164.0%). Not investment advice.
Valuation Context
Currently trading 10% below its 5-year average P/E of 19.2x.
Price Chart with Moving Averages
Technical Setup
AI GeneratedThe Clorox Company currently trades at $92.82 within the consumer defensive sector, a positioning that inherently suggests lower volatility compared to cyclical peers but does not eliminate exposure to macroeconomic headwinds. While the specific metrics for drawdown magnitude and recent price acceleration are absent from the provided dataset, the structural nature of this stock implies that any observed momentum is likely tied to fundamental stability rather than speculative fervor. In such defensive contexts, technical patterns often lag behind earnings surprises or shifts in consumer spending habits, meaning that apparent strength may be fragile if underlying demand softens unexpectedly. The interplay between price action and sector dynamics suggests a need for caution regarding the durability of current levels without additional data on historical volatility ranges or recent pullbacks. A purely defensive stock can experience sharp corrections when broader market risk appetite deteriorates, potentially decoupling its technical chart from its fundamental value proposition. Consequently, any perceived upward trajectory must be scrutinized against potential downside risks that are not immediately visible in a single price point. Ultimately, the technical setup for CLX reflects a balance between sector resilience and the ever-present possibility of mean reversion if market conditions shift. The absence of explicit drawdown figures prevents a definitive assessment of whether current support levels represent a structural floor or a temporary consolidation zone. Investors must weigh the inherent stability of consumer staples against the specific risk dynamics present in the broader equity environment to determine their own exposure strategy, as no single data point here dictates an inevitable outcome for future
Quant Health Deep Dive
Profitability & Value Creation
✅ Conservative payout — room for dividend increases.
DuPont Analysis — ROE Decomposition
Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.
Balance Sheet Health
Earnings Surprise History
EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.
Dividend History
| Date | Amount | Change |
|---|---|---|
| 2026-04-22 | $1.2400 | 0.0% |
| 2026-01-28 | $1.2400 | 0.0% |
| 2025-10-22 | $1.2400 | 0.0% |
| 2025-08-13 | $1.2400 | +1.6% |
| 2025-04-23 | $1.2200 | 0.0% |
| 2025-01-29 | $1.2200 | 0.0% |
| 2024-10-23 | $1.2200 | 0.0% |
| 2024-08-14 | $1.2200 | +1.7% |
| 2024-04-23 | $1.2000 | 0.0% |
| 2024-01-23 | $1.2000 | 0.0% |
| 2023-10-24 | $1.2000 | 0.0% |
| 2023-08-08 | $1.2000 | +1.7% |
Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Fama-French 5-Factor Exposure
Academic factor model decomposition — what's really driving this stock's returns.
Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.
Fundamentals
Passive Flow Attribution
ETF Draft EffectWhen investors buy or sell ETFs like MOAT or NOBL, the fund manager is mechanically forced to buy or sell CLX shares regardless of The Clorox Company's individual fundamentals. We estimate $2.2B of passive capital is structurally linked to CLX through 8 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.
Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.
ETF Contagion Visualizer
Simulate a price drop in The Clorox Company to visualize passive redemption contagion across ETFs and collateral stocks.
If The Clorox Company (CLX) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies WALMART INC (WMT) as the most exposed collateral stock, sharing 2 ETFs with CLX. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.
Contagion model based on shared ETF exposure and constituent weights across 30 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.
CLX Ownership Dynamics
Passive funds hold 1 in every 5 CLX shares, reducing daily market volatility.
The Clorox Company (CLX) exerts notable gravity on the passive index market, currently representing 2.2% of the MOAT (MOAT) and 1.6% of the ProShares S&P 500 Dividend Aristocrats ETF (NOBL). Across 31 tracked ETFs, approximately 23M shares (19.2% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.
ETFs with Highest CLX Exposure
Float lock-up computed from 31 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).
CLX Institutional Volume Profile
252-day volume distribution by price level. The Point of Control (POC) marks — the price where the most institutional volume transacted — an implicit support/resistance floor.
The highest-volume price zone for The Clorox Company over the past year sits near $121.16 (10% of 252-day volume). The current price of $89.63 sits 26.0% below the POC — suggesting potential mean-reversion upside if institutional demand reasserts at this level.
Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.
CLX Capital Efficiency
How efficiently does The Clorox Company convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.
The Clorox Company converts 55% of its EBITDA into free cash flow, a healthy conversion rate indicating efficient capital management — the business generates substantial cash after reinvestment. The positive ROIC-WACC spread of 17.2% confirms that reinvested capital creates shareholder value.
Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.
Fails-to-Deliver (FTD) History
SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.
| Date | Failed Shares | Close Price | Notional Value |
|---|---|---|---|
| 2026-05-08 | 450 | $92.11 | $41,449.5 |
| 2026-05-05 | 776 | $86.48 | $67,108.48 |
| 2026-05-01 | 160 | $96.44 | $15,430.4 |
| 2026-04-15 | 310 | $104.44 | $32,376.4 |
| 2026-04-13 | 4 | $105.28 | $421.12 |
| 2026-04-10 | 3,128 | $107.62 | $336,635.36 |
| 2026-04-01 | 233 | $103.63 | $24,145.79 |
| 2026-03-31 | 39,779 | $102.42 | $4.1M |
| 2026-03-30 | 25 | $102.04 | $2,551 |
| 2026-03-25 | 12 | $103.07 | $1,236.84 |
| 2026-03-23 | 1,866 | $106.15 | $198,075.9 |
| 2026-03-20 | 104 | $106.62 | $11,088.48 |
| 2026-03-13 | 24,716 | $108.73 | $2.7M |
| 2026-03-11 | 4,132 | $115.87 | $478,774.84 |
| 2026-03-02 | 5,363 | $127.16 | $681,959.08 |
| 2026-02-23 | 606 | $123.60 | $74,901.6 |
| 2026-02-18 | 50,927 | $122.96 | $6.3M |
| 2026-02-12 | 91 | $125.95 | $11,461.45 |
| 2026-01-26 | 1,192 | $113.48 | $135,268.16 |
| 2026-01-21 | 220,477 | $109.84 | $24.2M |
| 2026-01-20 | 2,100 | $109.98 | $230,958 |
| 2026-01-16 | 51,067 | $111.23 | $5.7M |
| 2026-01-15 | 167 | $111.41 | $18,605.47 |
| 2026-01-09 | 62 | $104.25 | $6,463.5 |
| 2026-01-06 | 14,075 | $101.28 | $1.4M |
| 2025-12-22 | 48,850 | $98.31 | $4.8M |
| 2025-12-18 | 1,806 | $101.52 | $183,345.12 |
| 2025-12-12 | 63 | $102.83 | $6,478.29 |
| 2025-12-11 | 1,564 | $102.52 | $160,341.28 |
| 2025-12-05 | 89 | $105.10 | $9,353.9 |
Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.
Price Correlations
Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.
| Peer | 252-Day (1Y) | 126-Day (6M) | Direction |
|---|---|---|---|
| WTGXX | NaN | NaN | |
| PG | 0.573 | 0.579 | Moderate |
| CL | 0.570 | 0.612 | Moderate |
| GIS | 0.534 | 0.480 | Moderate |
| CHD | 0.533 | 0.530 | Moderate |
| HD | 0.507 | 0.505 | Moderate |
| KMB | 0.501 | 0.515 | Moderate |
| AOS | 0.482 | 0.464 | Moderate |
| CAG | 0.480 | 0.464 | Moderate |
| LOW | 0.466 | 0.417 | Moderate |
Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.
Compare CLX to Peers
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.