Clorox (CLX) AI Stock Analysis

• Market Cap: $11.96B
• Dividend Yield: 5.05%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.21
• 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): 0.85
• Shares Outstanding: 121,980,380
• 10 Day Avg. Volume: 2,803,061
• 30 Day Avg. Volume: 2,348,765
• 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: 1.52
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 13.69
• 1Y Price Target: $122.82
• Price Target Upside: 26.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $103.00 ▲(5.72% Upside)

Clorox's overall stock score is driven by strong profitability and a fair valuation, but is tempered by financial instability, bearish technical indicators, and mixed earnings call sentiment. The company's high leverage and recent operational disruptions pose significant risks.

Positive Factors

Innovation Across Major Brands

Continued innovation across major brands enhances product offerings, potentially increasing market share and driving long-term revenue growth.

Successful ERP System Launch

The new ERP system strengthens Clorox's digital infrastructure, improving operational efficiency and supporting future growth initiatives.

Shareholder Support for Governance

Strong shareholder support for governance decisions reflects confidence in leadership, enhancing operational stability and strategic execution.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting Clorox's ability to invest in growth and innovation.

Negative Organic Sales Growth

Declining organic sales growth indicates challenges in maintaining market share and revenue, affecting long-term business sustainability.

Executive Resignation

The resignation of a key executive may disrupt strategic operations and leadership continuity, impacting Clorox's long-term strategic direction.

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 products, which are marketed under various brand names. The company's revenue model is predominantly based on retail sales through supermarkets, drugstores, and online platforms. Key revenue streams include cleaning products, which account for a significant portion of sales, followed by the sales of food storage and personal care products. Clorox also benefits from strategic partnerships with retailers and distributors, enhancing its market reach and visibility. Additionally, the company invests in innovation and product development to meet changing consumer preferences, which contributes to its earnings by driving new product launches and expanding its market share.

Clorox Financial Statement Overview

Summary

Clorox shows strong profitability with healthy EBIT and EBITDA margins, but faces challenges with declining revenue growth and high leverage. The negative equity position is a significant concern, highlighting financial instability.

Income Statement

Clorox's income statement shows mixed results. The TTM data indicates a decline in revenue growth by 4.69%, which is concerning. However, the company maintains a strong gross profit margin of 45.23% and a net profit margin of 11.40%, reflecting operational efficiency. The EBIT and EBITDA margins are healthy at 16.46% and 20.44%, respectively, indicating good profitability despite the revenue decline.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio of 8.97, which poses a risk. The negative stockholders' equity in the TTM period is alarming. Return on equity is positive at 8.83%, but the equity ratio is negative due to the negative equity, indicating financial instability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 16.43% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is reasonable at 0.51, and the free cash flow to net income ratio is strong at 0.78, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.77B	7.10B	7.09B	7.39B	7.11B	7.34B
Gross Profit	2.99B	3.19B	3.02B	2.87B	2.49B	3.18B
EBITDA	1.33B	1.40B	736.00M	577.00M	928.00M	1.20B
Net Income	791.00M	810.00M	280.00M	149.00M	462.00M	710.00M
Balance Sheet
Total Assets	5.53B	5.56B	5.75B	5.95B	6.16B	6.33B
Cash, Cash Equivalents and Short-Term Investments	166.00M	167.00M	202.00M	367.00M	183.00M	319.00M
Total Debt	3.08B	2.88B	2.90B	2.92B	3.10B	3.17B
Total Liabilities	5.39B	5.08B	5.26B	5.56B	5.43B	5.74B
Stockholders Equity	-22.00M	321.00M	328.00M	220.00M	556.00M	411.00M
Cash Flow
Free Cash Flow	636.00M	761.00M	483.00M	930.00M	535.00M	945.00M
Operating Cash Flow	853.00M	981.00M	695.00M	1.16B	786.00M	1.28B
Investing Cash Flow	-217.00M	-94.00M	-175.00M	-223.00M	-229.00M	-452.00M
Financing Cash Flow	-746.00M	-924.00M	-655.00M	-753.00M	-689.00M	-1.39B

Clorox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.43
• 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 97.43 is below the 20-day moving average (MA) of 102.90, below the 50-day MA of 107.11, and below the 200-day MA of 122.32, indicating a bearish trend. The MACD of -2.41 indicates Positive momentum. The RSI at 32.57 is Neutral, neither overbought nor oversold. The STOCH value of 6.60 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
CHD	72 Outperform	$20.23B	26.84	18.59%	1.38%	1.45%	42.04%
PG	69 Neutral	$333.43B	20.90	31.90%	2.92%	1.23%	17.97%
CL	63 Neutral	$63.71B	22.40	450.35%	2.67%	-0.05%	2.49%
KMB	63 Neutral	$33.11B	16.96	136.87%	5.03%	-10.04%	-23.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EL	56 Neutral	$39.15B	-41.67	-20.73%	1.30%	-6.36%	-554.84%
CLX	55 Neutral	$11.96B	15.27	4163.16%	5.05%	-9.35%	123.06%

Clorox Corporate Events

Clorox Shareholders Approve Key Governance Decisions

On November 19, 2025, The Clorox Company conducted its virtual annual meeting of shareholders, where all company nominees for director were elected, executive officer compensation was approved on an advisory basis, and Ernst & Young LLP was ratified as the independent auditor for the fiscal year ending June 30, 2026. These decisions reflect shareholder support for the company’s current leadership and strategic direction, potentially impacting its governance and operational stability.

Clorox Reports 19% Sales Drop Amid ERP Transition

On November 3, 2025, Clorox reported a 19% decrease in net sales for the first quarter of fiscal year 2026, primarily due to the impact of its ERP transition, which led to lower shipments as retailers depleted their inventories. The ERP transition, while causing temporary disruptions, marks a significant milestone in Clorox’s transformation journey, with the company now focusing on accelerating growth through innovation and demand-creation initiatives.

Clorox EVP Eric Reynolds Announces Resignation

On October 27, 2025, Eric Reynolds, the Executive Vice President and Chief Operating and Strategy Officer of Clorox, announced his resignation after 27 years with the company. He will officially step down on December 2, 2025, but will remain available in an advisory capacity until February 2, 2026. Clorox does not plan to appoint a replacement for his position, which may impact the company’s strategic operations.