Clorox (CLX) AI Stock Analysis

• Market Cap: $13.15B
• Dividend Yield: 5.05%
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.19
• Revenue Growth: -9.35%
• EPS Growth: 123.06%
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.39
• Shares Outstanding: 120,911,865
• 10 Day Avg. Volume: 2,145,878
• 30 Day Avg. Volume: 2,170,793
• PEG Ratio: 0.10
• Price to Book (P/B): 46.20
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 19.49
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 5.54
• Enterprise Value/Ebitda: 12.54
• 1Y Price Target: $120.14
• Price Target Upside: 10.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 5.91
• Revenue Forecast (FY): $6.50B

• Rating: 56 Neutral
• Price Target: $116.00 ▲(6.69% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

CLX scores moderately due to improved profitability and solid free cash flow, but is held back by the weak revenue trend and balance-sheet leverage/negative equity. Technicals are soft, while valuation and dividend yield provide some support; guidance is reaffirmed but near-term ERP and category/pricing pressures keep the outlook balanced.

Positive Factors

Improved Profitability

Sustained mid-teens EBIT margins and ~11.7% net margin indicate durable operating leverage from pricing, mix and cost control. Higher margins improve resilience to category volatility, provide margin buffer for promotional periods, and support reinvestment in innovation and channel expansion over the medium term.

Strong Cash Generation

Nearly $1.0B operating cash flow and ~$778M FCF show the business converts earnings into cash reliably, enabling funding of working capital, marketing, and strategic M&A without immediate equity raises. Robust FCF supports deleveraging or targeted growth investments over the next several quarters.

Strategic GOJO (Purell) Acquisition

Acquiring GOJO expands Clorox into higher-growth health & hygiene and a sticky B2B dispenser-installed revenue stream, diversifying channels beyond mass retail. Expected synergies and accretion after integration can sustainably boost growth and margins, strengthening the company’s long-term portfolio mix.

Negative Factors

High Leverage / Negative Equity

Material debt and negative equity constrain financial flexibility, increase refinancing and covenant risk, and reduce the firm's ability to absorb demand shocks or fund simultaneous large investments. Elevated leverage raises long-term interest and credit exposure versus peers.

Weak Top-Line Trend

A ~19% trailing revenue decline signals structural demand headwinds or channel disruptions that margin gains alone may not offset. Persistent top-line weakness undermines long-term growth targets and makes margin recovery dependent on sustained category recovery and successful new-product adoption.

Category Weakness, Share Losses & Promotions

Flat category growth, share erosion and heavier promotions indicate intensified competitive pressure. Defending share through promotions compresses margins and requires repeated marketing investment; lasting recovery depends on successful innovation and regaining pricing power across channels.

Clorox Business Overview & Revenue Model

Company Description

The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States. The Household segment provides cat litter products under the Fresh Step and Scoop Away brands; bags and wraps under the Glad brand; and grilling products under the Kingsford brand in the United States. The Lifestyle segment offers dressings, dips, seasonings, and sauces primarily under the Hidden Valley brand; natural personal care products under the Burt's Bees brand; and water-filtration products under the Brita brand in the United States. The International segment provides laundry additives; home care products; water-filtration systems; digestive health products; grilling products; cat litter products; food products; bags and wraps; natural personal care products; and professional cleaning and disinfecting products internationally primarily under the Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean and Burt's Bees brands. The Clorox Company sells its products primarily through mass retailers; grocery outlets; warehouse clubs; dollar stores; home hardware centers; drug, pet and military stores; third-party and owned e-commerce channels; and distributors, as well as a direct sales force The company was founded in 1913 and is headquartered in Oakland, California.

How the Company Makes Money

Clorox primarily makes money by manufacturing and selling branded consumer and professional products to retailers, distributors, and other channel partners, recognizing revenue from product sales (net of trade promotions, discounts, and allowances). Its core revenue streams come from its major product categories, with cleaning and disinfecting products and household essentials (such as trash bags and food storage) typically representing significant portions of sales, alongside lifestyle and food-related brands (such as water filtration and dressings/seasonings). The company’s earnings are driven by (1) sales volume (consumer demand and channel inventory levels), (2) pricing and mix (the price points and the relative share of higher- vs. lower-margin products sold), and (3) cost management (commodity inputs like resins, pulp, and chemicals; manufacturing and logistics costs). Clorox expands reach and monetization through a multi-channel go-to-market model (brick-and-mortar retail, e-commerce, and professional/away-from-home channels) and through brand marketing that supports repeat purchases and category leadership. International revenue is generated via sales in non-U.S. markets, including through local operations and distribution relationships; specific partner identities are null.

Clorox Financial Statement Overview

Summary

Profitability and cash generation have improved (TTM net margin ~11.7%, EBIT margin ~16.4%, and TTM FCF ~$778M), but revenue is down sharply (TTM ~-19.2%) and the balance sheet is a major constraint with high debt (~$3.2B) and negative equity, limiting financial flexibility.

Income Statement

Profitability has improved meaningfully versus the weaker 2023–2024 period, with TTM (Trailing-Twelve-Months) net margin at ~11.7% and solid operating profitability (EBIT margin ~16.4%), pointing to better pricing/mix and cost control. However, the top line is a clear weak spot: TTM (Trailing-Twelve-Months) revenue is down ~19.2%, and recent years show choppy growth rather than a steady upward trajectory.

Balance Sheet

Leverage is the primary concern. Debt remains high (~$3.2B TTM (Trailing-Twelve-Months)), and the latest equity balance is negative, which materially weakens balance-sheet flexibility and makes leverage metrics unfavorable. While total assets are sizable (~$5.6B), the capital structure leaves less room for error if earnings or cash generation were to soften.

Cash Flow

Cash generation is generally supportive, with TTM (Trailing-Twelve-Months) operating cash flow of ~$984M and free cash flow of ~$778M, and free cash flow running at roughly three-quarters of net income, indicating decent earnings quality. Offsetting this, cash flow coverage metrics are not especially strong and have fluctuated across periods, suggesting cash conversion and working-capital dynamics can be uneven.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	6.76B	7.10B	7.09B	7.39B	7.11B	7.34B
Gross Profit	2.98B	3.19B	3.02B	2.87B	2.49B	3.18B
EBITDA	1.31B	1.40B	736.00M	577.00M	928.00M	1.20B
Net Income	755.00M	810.00M	280.00M	149.00M	462.00M	710.00M
Balance Sheet
Total Assets	5.61B	5.56B	5.75B	5.95B	6.16B	6.33B
Cash, Cash Equivalents and Short-Term Investments	227.00M	167.00M	202.00M	367.00M	183.00M	319.00M
Total Debt	3.22B	2.88B	2.90B	2.92B	3.10B	3.17B
Total Liabilities	5.58B	5.08B	5.26B	5.56B	5.43B	5.74B
Stockholders Equity	-125.00M	321.00M	328.00M	220.00M	556.00M	411.00M
Cash Flow
Free Cash Flow	778.00M	761.00M	483.00M	930.00M	535.00M	945.00M
Operating Cash Flow	984.00M	981.00M	695.00M	1.16B	786.00M	1.28B
Investing Cash Flow	-206.00M	-94.00M	-175.00M	-223.00M	-229.00M	-452.00M
Financing Cash Flow	-847.00M	-924.00M	-655.00M	-753.00M	-689.00M	-1.39B

Clorox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 108.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLX, the sentiment is Negative. The current price of 108.73 is below the 20-day moving average (MA) of 121.01, below the 50-day MA of 114.33, and below the 200-day MA of 115.11, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 33.35 is Neutral, neither overbought nor oversold. The STOCH value of 17.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLX.

Clorox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$349.76B	20.05	31.23%	2.92%	1.23%	17.97%
CHD	73 Outperform	$23.47B	27.62	17.16%	1.38%	1.45%	42.04%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CL	61 Neutral	$70.50B	-429.64	431.59%	2.67%	-0.05%	2.49%
KMB	61 Neutral	$32.47B	16.63	155.28%	5.03%	-10.04%	-23.41%
CLX	56 Neutral	$13.15B	19.52	1502.49%	5.05%	-9.35%	123.06%
EL	55 Neutral	$30.49B	58.52	-4.41%	1.30%	-6.36%	-554.84%

Clorox Corporate Events

Clorox Secures New Credit Facilities for GOJO Acquisition

On March 6, 2026, Clorox arranged two new senior unsecured credit facilities totaling up to $2.25 billion in connection with its planned purchase of all membership interests in GOJO Industries, maker of PURELL. The company secured a $1 billion 364-day revolving credit line for general corporate purposes and a $1.25 billion delayed-draw term loan primarily to fund the GOJO acquisition, related fees, and repayment of certain GOJO debt.

Both facilities, led by JPMorgan Chase, Citibank, and Wells Fargo, include customary covenants, a consolidated interest coverage ratio, and standard events of default, with pricing tied to Clorox’s long-term credit rating. The structure gives Clorox flexible, unsecured financing to execute the GOJO deal while preserving balance-sheet optionality, signaling a significant capital commitment to expand its hygiene portfolio and potentially altering its leverage profile and risk-return dynamics for creditors and shareholders.

The most recent analyst rating on (CLX) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Clorox stock, see the CLX Stock Forecast page.

Clorox Posts Mixed Q2 Results, Reaffirms 2026 Outlook

On Feb. 3, 2026, Clorox reported that second-quarter fiscal 2026 net sales for the period ended Dec. 31, 2025 slipped 1% to $1.67 billion, with organic sales down 1% as lower consumption more than offset shipments pulled forward in some businesses. Gross margin contracted by 60 basis points to 43.2% on higher manufacturing and logistics costs, and diluted EPS fell 16% to $1.29, while adjusted EPS declined 10% to $1.39, although operating cash flow for the year to date edged up 1% to $404 million. Segment performance was mixed, with modest sales growth but lower profitability in Health and Wellness, a sharp EBIT decline in Household on weaker demand and cost pressures, flat-to-better profitability in Lifestyle despite softer sales, and strong sales and EBIT growth internationally. Strategically, Clorox highlighted a definitive deal to acquire GOJO Industries and its Purell brand, the completion of the final phase of its U.S. ERP rollout, and a slate of new product launches, all underpinning management’s decision to reaffirm full-year guidance for 2026, even as earlier order-fulfillment issues and an intentional ERP-related inventory build and drawdown are expected to weigh heavily on reported sales and earnings, positioning results toward the lower end of its forecast ranges.

The most recent analyst rating on (CLX) stock is a Hold with a $142.00 price target. To see the full list of analyst forecasts on Clorox stock, see the CLX Stock Forecast page.

Clorox to Acquire GOJO, Expanding Hygiene Portfolio

On January 22, 2026, Clorox announced a definitive agreement to acquire GOJO Industries, maker of the Purell skin hygiene brand, for $2.25 billion in cash, implying a net purchase price of $1.92 billion after anticipated tax benefits and valuing the deal at an adjusted EBITDA multiple of 11.9x, or 9.1x including projected cost synergies. GOJO, which generates nearly $800 million in annual sales and derives more than 80% of its revenue through a broad B2B distributor network anchored by roughly 20 million installed dispensers, will expand Clorox’s presence in high-growth health and hygiene categories and strengthen its professional and institutional offerings while keeping GOJO’s operations based in Ohio. Clorox plans to fund the acquisition primarily with debt, expects at least $50 million in run-rate cost synergies, and projects the transaction will add a recurring revenue stream, be accretive to growth and adjusted EBITDA margins after synergies, and turn accretive to adjusted EPS in the second year, while reaffirming its standalone fiscal 2026 sales and earnings outlook as it pursues its IGNITE strategy and leverages its scale to accelerate Purell’s retail growth and build a best-in-class B2B hygiene platform.

The most recent analyst rating on (CLX) stock is a Sell with a $109.00 price target. To see the full list of analyst forecasts on Clorox stock, see the CLX Stock Forecast page.