Clorox (CLX) AI Stock Analysis

• Market Cap: $15.54B
• Dividend Yield: 3.86%
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.36
• Revenue Growth: 0.16%
• EPS Growth: 191.17%
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Household & Personal Products
• EPS (TTM): 2.87
• Shares Outstanding: 122,309,420
• 10 Day Avg. Volume: 2,163,691
• 30 Day Avg. Volume: 2,001,153
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: 12.23
• 1Y Price Target: $131.29
• Price Target Upside: 3.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 62 Neutral
• Price Target: $125.00 ▼(-1.60% Downside)

Clorox's overall stock score reflects solid financial performance and a reasonable valuation, but is weighed down by technical weakness and challenges highlighted in the earnings call. The company's high leverage and declining free cash flow growth are significant risks, while the bearish technical indicators suggest caution. Despite these challenges, the company's focus on innovation and ERP implementation offers potential for future improvement.

Positive Factors

Financial Performance

F26 sales and gross margin guidance appear achievable.

Innovation

CLX continues to see innovation as a clear differentiator versus private label.

Negative Factors

Consumer Behavior

Clorox described continued pressure from value-seeking consumer behavior and shifting channels.

Market Growth

Category growth remains soft compared to historical trends.

Sales Performance

Clorox reported disappointing 4Q results with sales down after adjusting for the pull-forward of shipments for their ERP transition.

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 generates revenue primarily through the sale of its consumer and professional products across various categories. The company's main revenue streams include the sale of cleaning products, disinfectants, and food storage items, which contribute significantly to its overall earnings. Clorox leverages a strong brand portfolio and distribution network to reach consumers through both retail and online channels. Additionally, the company invests in marketing and promotional activities to drive brand awareness and loyalty. Strategic partnerships with retailers and e-commerce platforms enhance its market presence and accessibility. Factors such as increasing consumer awareness of health and hygiene, especially during and post-pandemic, have also positively impacted its sales and growth.

Clorox Financial Statement Overview

Summary

Clorox shows solid financial performance with improved profitability and operational efficiency. However, high leverage and declining free cash flow growth present potential risks. The company needs to focus on strengthening its balance sheet and enhancing cash flow management to sustain long-term growth.

Income Statement

Clorox has demonstrated a stable revenue base with a slight growth in the most recent year. The gross profit margin has improved to 45.23% in 2025 from 42.97% in 2024, indicating better cost management. However, net profit margin remains modest at 11.40%, though it has improved significantly from 3.95% in 2024. EBIT and EBITDA margins have also shown improvement, suggesting enhanced operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 8.97, indicating significant leverage, which poses a risk. However, return on equity has improved to 25.23%, reflecting better profitability relative to shareholder equity. The equity ratio remains low, suggesting a reliance on debt financing.

Cash Flow

Operating cash flow has increased, indicating strong cash generation capabilities. However, free cash flow has declined, with a negative growth rate of -4.99%. The free cash flow to net income ratio is low, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.10B	7.10B	7.09B	7.39B	7.11B	7.34B
Gross Profit	3.21B	3.21B	3.05B	2.91B	2.54B	3.20B
EBITDA	1.45B	1.17B	736.00M	577.00M	928.00M	1.20B
Net Income	810.00M	810.00M	280.00M	149.00M	462.00M	710.00M
Balance Sheet
Total Assets	5.56B	5.56B	5.75B	5.95B	6.16B	6.33B
Cash, Cash Equivalents and Short-Term Investments	167.00M	167.00M	202.00M	367.00M	183.00M	319.00M
Total Debt	2.88B	2.88B	2.90B	2.92B	3.10B	3.17B
Total Liabilities	5.08B	5.08B	5.26B	5.56B	5.43B	5.74B
Stockholders Equity	321.00M	321.00M	328.00M	220.00M	556.00M	411.00M
Cash Flow
Free Cash Flow	761.00M	761.00M	483.00M	930.00M	535.00M	945.00M
Operating Cash Flow	981.00M	981.00M	695.00M	1.16B	786.00M	1.28B
Investing Cash Flow	-94.00M	-94.00M	-175.00M	-223.00M	-229.00M	-452.00M
Financing Cash Flow	-924.00M	-924.00M	-655.00M	-753.00M	-689.00M	-1.39B

Clorox Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 127.03
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLX, the sentiment is Neutral. The current price of 127.03 is above the 20-day moving average (MA) of 121.05, above the 50-day MA of 123.21, and below the 200-day MA of 139.78, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 63.11 is Neutral, neither overbought nor oversold. The STOCH value of 95.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLX.

Clorox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	78 Outperform	$374.83B	24.59	31.23%	2.58%	0.29%	7.85%
CHD	71 Outperform	$23.34B	45.19	12.07%	1.22%	1.13%	-34.78%
CL	63 Neutral	$68.80B	23.93	705.21%	2.40%	0.05%	3.55%
Sector *	63 Neutral	$20.52B	14.80	-2.68%	3.09%	1.95%	-4.76%
CLX	62 Neutral	$15.54B	19.49	249.61%	3.86%	0.16%	191.17%
KMB	60 Neutral	$43.09B	17.90	196.26%	3.85%	-6.89%	7.52%
EL	50 Neutral	$32.10B	147.29	-24.69%	1.57%	-8.14%	-389.12%

Clorox Corporate Events

Clorox Reports Q4 2025 Financial Results with 4% Sales Growth

On July 31, 2025, Clorox reported its financial results for the fourth quarter and fiscal year 2025, highlighting a 4% increase in net sales to $2.0 billion, driven by ERP-related shipments, despite challenges such as unfavorable price mix and divestitures. The company achieved a significant 55% increase in diluted EPS and a 58% rise in adjusted EPS, attributed to higher volumes and cost savings, although it faced market volatility and shifting consumer behaviors. Clorox’s strategic advancements include the implementation of a new ERP system in the U.S. to support long-term growth, with expectations of reversing ERP shipment benefits in fiscal year 2026.