Clorox (CLX) AI Stock Analysis

• Market Cap: $14.90B
• Dividend Yield: 5.05%
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.15
• 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: 1,905,139
• 30 Day Avg. Volume: 2,174,208
• 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: 1.24
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 6.20
• Enterprise Value/Ebitda: 14.03
• 1Y Price Target: $120.14
• Price Target Upside: -2.80% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $122.00 ▼(-1.29% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held back primarily by financial risk factors—high leverage/negative equity and weak revenue trend—despite improved profitability and solid free cash flow. Technicals are supportive in the short term but look extended (overbought) and still below the 200-day average. Valuation is a relative positive due to a mid-teen P/E and ~4.3% dividend yield, while the earnings call indicates cautious optimism with reaffirmed guidance but meaningful near-term operational and category headwinds.

Positive Factors

Brand portfolio & market position

Clorox's long-established, diversified brand portfolio gives durable shelf presence, retailer leverage and consumer trust across cleaning, lifestyle and personal-care categories. That entrenched market position supports new product rollouts, cross‑selling and resilience through demand cycles.

Solid cash generation

Consistent operating cash flow and substantial FCF provide durable financial flexibility to fund marketing, innovation, and M&A while servicing debt and paying dividends. Strong cash conversion supports strategic investment even with near‑term top‑line pressure.

Strategic acquisition expands hygiene business

Buying GOJO materially expands Clorox's health & hygiene footprint into recurring B2B channels and institutional customers, diversifying revenue mix. Expected synergies and distribution scale can lift growth and margins over multiple years, strengthening structural growth drivers.

Negative Factors

High leverage & weak equity base

Elevated debt and negative equity materially weaken balance‑sheet flexibility, raising refinancing and covenant risk and limiting capacity for organic investment or bolt‑on M&A without adding leverage. This structural constraint amplifies downside if cash flow softens.

Sustained revenue decline

A large trailing decline in revenue undermines operating leverage and makes margin improvement dependent on cost cuts, successful innovation and category recovery. Persistent top‑line weakness complicates deleveraging and reduces room to absorb promotional or cost shocks.

Category weakness & promotional pressure

Flat category demand and intense promotions, particularly in trash bags and cat litter, pressure long‑run pricing power and margins. Defending or regaining share via trade spending can persistently erode profitability unless offset by sustained innovation or productivity gains.

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

Profitability and cash generation have improved (TTM net margin ~11.7%, EBIT margin ~16.4%, and TTM FCF ~$778M), but this is offset by a weak revenue trend (TTM revenue down ~19.2%) and a pressured balance sheet with high debt (~$3.2B) and negative equity, reducing 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: Positive
• Last Price: 123.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLX, the sentiment is Positive. The current price of 123.6 is above the 20-day moving average (MA) of 117.98, above the 50-day MA of 108.53, and above the 200-day MA of 115.87, indicating a bullish trend. The MACD of 4.48 indicates Negative momentum. The RSI at 68.67 is Neutral, neither overbought nor oversold. The STOCH value of 56.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLX.

Clorox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$364.54B	23.24	31.58%	2.92%	1.23%	17.97%
CHD	73 Outperform	$24.30B	34.04	17.62%	1.38%	1.45%	42.04%
CL	65 Neutral	$77.04B	36.34	1602.26%	2.67%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CLX	62 Neutral	$14.90B	20.13	―	5.05%	-9.35%	123.06%
KMB	61 Neutral	$36.48B	18.12	147.22%	5.03%	-10.04%	-23.41%
EL	55 Neutral	$40.37B	-223.35	-4.34%	1.30%	-6.36%	-554.84%

Clorox Corporate Events

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.

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.

The most recent analyst rating on (CLX) stock is a Hold with a $112.00 price target. To see the full list of analyst forecasts on Clorox stock, see the CLX Stock Forecast page.