Clorox Company (CLX)
NYSE:CLX
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Clorox
(NYSE:CLX)
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Rating:54Neutral
Price Target:
$94.00
▼(-10.12% Downside)
Action:Reiterated
Date:05/12/26
The score is held back primarily by elevated balance-sheet risk (negative equity and high leverage) and weakening recent cash-flow momentum. Technicals also point to a sustained downtrend. Offsetting these are improved TTM margins, a supportive dividend yield, and medium-term operational catalysts (ERP stabilization and GOJO synergy potential) despite near-term margin and interest headwinds.
Positive Factors
Strategic acquisition expands hygiene portfolio
The GOJO/Purell acquisition materially broadens Clorox’s health & hygiene footprint and adds a larger institutional B2B channel. Retaining GOJO leadership and operations supports smoother integration and preserves customer relationships, improving structural growth optionality and cross-sell over multiple years.
Negative Factors
Strained balance sheet / negative equity
Trailing-twelve-month negative equity and elevated debt materially constrain financial flexibility. This impairs ability to pursue opportunistic investment, increases refinancing and covenant sensitivity, and makes capital returns or aggressive M&A more costly over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic acquisition expands hygiene portfolio
The GOJO/Purell acquisition materially broadens Clorox’s health & hygiene footprint and adds a larger institutional B2B channel. Retaining GOJO leadership and operations supports smoother integration and preserves customer relationships, improving structural growth optionality and cross-sell over multiple years.
Read all positive factors
Clorox Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights income from different business units, showing which areas drive growth and profitability, and where the company might focus future investments.
Highlights income from different business units, showing which areas drive growth and profitability, and where the company might focus future investments.
Data provided by:
The Fly
The FlyClorox (CLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.22B
Dividend Yield5.05%
Average Volume (3M)3.18M
Price to Earnings (P/E)16.8
Beta (1Y)0.22
Revenue Growth-3.69%
EPS Growth10.26%
CountryUS
Employees7,400
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)6.18
Shares Outstanding120,921,350
10 Day Avg. Volume3,504,369
30 Day Avg. Volume3,183,094
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)46.20
Price to Sales (P/S)2.09
P/FCF Ratio19.49
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue2.14
Enterprise Value/Gross Profit4.90
Enterprise Value/Ebitda10.93
Forecast
1Y Price Target
$98.77Price Target Upside-5.56% Downside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)5.56
Revenue Forecast (FY)$6.68B
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, su...
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...
Clorox Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call was mixed: management highlighted important strategic and operational progress (ERP completion, strong innovation, distribution gains, Glad and Hidden Valley improvements, and the accretive GOJO acquisition with targeted synergies) but also disclosed significant near-term margin headwinds (higher logistics/input costs, one-time acquisition and cost-acceleration charges), category weakness in Food, and a bumpy conversion in Litter. The tone was cautiously optimistic — confident in long-term plans and tools to mitigate inflation and drive value superiority, while acknowledging material short-term pressure and uncertainty.Positive Updates
ERP Implementation Completed and Stabilization
The multi-phase ERP implementation was completed in Q3; service levels have stabilized and related incremental costs have come down. Management stated minimal incremental ERP-related costs by the end of Q3 and expects little to no incremental ERP cost in Q4, improving the foundation for execution and margin recovery.
Negative Updates
Q3 Results Missed Expectations; Mixed Performance
Company said Q3 results were mixed and fell short of expectations. Management called out a few businesses that showed slower improvement than planned and said overall Q3 performance was below internal expectations.
Read all updates
Q3-2026 Updates
Positive
Negative
ERP Implementation Completed and Stabilization
The multi-phase ERP implementation was completed in Q3; service levels have stabilized and related incremental costs have come down. Management stated minimal incremental ERP-related costs by the end of Q3 and expects little to no incremental ERP cost in Q4, improving the foundation for execution and margin recovery.
Read all positive updates
Company Guidance
Management reiterated that fiscal 2026 remains uncertain but gave several quantified assumptions: they’re modeling roughly $100/barrel oil in Q4, which they estimate will be a $20–25M Q4 headwind (~130 bps of gross margin); Q4 gross margin is running about 5 percentage points below last year (~150 bps from lapping ERP-related operating leverage, ~200 bps tied to the GOJO acquisition — including a non‑recurring ~150‑bps inventory step‑up — and another ~100–150 bps from elevated input costs); GOJO adds an ~$800M business (≈$200M in Q4, ~+10% to the quarter and ~+3% to the year), is expected to be EBITDA‑neutral in year 1 with at least $50M of run‑rate synergies targeted, ~50 bps of gross‑margin dilution in year 1, <1 point SG&A dilution and an initial ~1‑point reduction in A&P as a percent of sales (≈‑25 bps full year); interest expense rises ~+$30M in Q4 and ~+$110M in the following year above a ~$100M pre‑acquisition run rate; operationally Q3 total distribution points were +5%, company categories are expected roughly 0–1% for the remainder of the year (litter mid‑single digits, food down mid‑single digits), ERP implementation is complete with ERP‑related logistics/fulfillment costs largely abating in Q4, and there is a one‑time ~50‑bps gross‑margin headwind to accelerate structural cost savings into FY27.Clorox Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
28
Negative
Cash Flow
54
Neutral
| 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 | 2.96B | 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 | 756.00M | 810.00M | 280.00M | 149.00M | 462.00M | 710.00M |
Balance Sheet | ||||||
| Total Assets | 6.44B | 5.56B | 5.75B | 5.95B | 6.16B | 6.33B |
| Cash, Cash Equivalents and Short-Term Investments | 1.19B | 167.00M | 202.00M | 367.00M | 183.00M | 319.00M |
| Total Debt | 4.49B | 2.88B | 2.90B | 2.92B | 3.10B | 3.17B |
| Total Liabilities | 6.34B | 5.08B | 5.26B | 5.56B | 5.43B | 5.74B |
| Stockholders Equity | -67.00M | 321.00M | 328.00M | 220.00M | 556.00M | 411.00M |
Cash Flow | ||||||
| Free Cash Flow | 380.00M | 761.00M | 483.00M | 930.00M | 535.00M | 945.00M |
| Operating Cash Flow | 576.00M | 981.00M | 695.00M | 1.16B | 786.00M | 1.28B |
| Investing Cash Flow | -196.00M | -94.00M | -175.00M | -223.00M | -229.00M | -452.00M |
| Financing Cash Flow | 578.00M | -924.00M | -655.00M | -753.00M | -689.00M | -1.39B |
Clorox Technical Analysis
Neutral
104.58
Price Trends
99.52
Negative
105.78
Negative
108.54
Negative
Market Momentum
-2.60
Negative
45.42
Neutral
76.35
Neutral
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 104.58 is above the 20-day moving average (MA) of 92.43, above the 50-day MA of 99.52, and below the 200-day MA of 108.54, indicating a neutral trend. The MACD of -2.60 indicates Negative momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 76.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLX.
Clorox Risk Analysis
Clorox disclosed 26 risk factors in its most recent earnings report. Clorox reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clorox Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $331.57B | 21.99 | 31.28% | 2.92% | 3.33% | 8.06% | |
65 Neutral | $22.93B | 25.51 | 17.45% | 1.38% | 2.22% | 29.40% | |
64 Neutral | $71.95B | 26.46 | 475.13% | 2.67% | 4.26% | -27.12% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $32.05B | 12.04 | 143.64% | 5.03% | -16.17% | -13.40% | |
54 Neutral | $11.22B | 16.81 | 2826.17% | 5.05% | -3.69% | 10.26% | |
54 Neutral | $28.95B | 73.12 | -6.29% | 1.30% | 0.71% | 71.47% |
* Consumer Defensive Sector Average
CLX
Clorox
92.57
-37.10
-28.61%
CHD
Church & Dwight
95.75
0.15
0.16%
CL
Colgate-Palmolive
90.02
0.30
0.33%
EL
The Estée Lauder Companies
76.14
11.10
17.06%
KMB
Kimberly Clark
96.47
-39.13
-28.86%
PG
Procter & Gamble
141.30
-19.71
-12.24%
Clorox Corporate Events
Private Placements and Financing
Clorox Raises $1.5 Billion Through Senior Notes Offering
Positive
May 11, 2026
On May 6, 2026, The Clorox Company executed an underwriting agreement to issue $1.5 billion in senior notes across 4.700% notes due 2031, 4.950% notes due 2033, and 5.250% notes due 2036 in an underwritten registered public offering. The transacti...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Clorox Posts Mixed Q3 Results, Lowers Fiscal 2026 Outlook
Negative
Apr 30, 2026
On April 30, 2026, Clorox reported mixed results for its third quarter ended March 31, 2026, with net sales flat at $1.67 billion and organic sales down 1% versus a year earlier, while gross margin compressed by 140 basis points to 43.2% on higher...
Business Operations and StrategyM&A Transactions
Clorox Completes Acquisition of Purell Maker GOJO Industries
Positive
Apr 1, 2026
On April 1, 2026, Clorox completed its previously announced acquisition of GOJO Industries, the maker of Purell, bringing the well-known sanitizing brand and GOJO’s broader health and hygiene solutions under the Clorox umbrella. The deal, st...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Clorox Secures New Credit Facilities for GOJO Acquisition
Positive
Mar 11, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.