Clorox: A Better Business, But Too Much Growth Is Priced In

I reiterate a Hold rating on The Clorox Company, as the current valuation requires unsustainably high free cash flow growth. Recent positives include the GOJO acquisition and ERP rollout, but organic revenue growth remains limited after adjusting for these factors. CLX's balance sheet is heavily leveraged post-acquisition, constraining reinvestment and raising dividend sustainability concerns. Despite optimism around wellness trends, I see an insufficient margin of safety at current prices and recommend monitoring for a significant price drop.

I previously covered The Clorox Company ( CLX ) a little over a year ago and initiated a Hold rating with a price target of $126. I had believed the market was fairly valuing the consumer staples