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Clorox
(NYSE:CLX)
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Rating:57Neutral
Price Target:
$111.00
▲(16.17% Upside)
Action:Reiterated
Date:08/11/26
The score is held back primarily by financial risk: sharply higher leverage and a very thin equity base reduce flexibility alongside recent revenue and margin volatility. Technicals are a notable positive with an established uptrend, while valuation is moderately supportive due to the strong dividend yield but tempered by leverage. The latest earnings call reinforces a cautious but constructive outlook, with stable cash flow targets and GOJO/ERP benefits offset by heavy, front-loaded inflation and promotional pressure.
Positive Factors
Accretive GOJO acquisition expands hygiene platform
The GOJO deal strengthens Clorox's exposure to higher-growth health & hygiene end markets and is already accretive to EPS. Over the next 2–3 years, realized revenue synergies and higher-margin hygiene sales can diversify mix, support margin resilience and sustain organic growth.
Negative Factors
Very high leverage and tiny equity base
Extremely elevated leverage with a very thin equity cushion materially increases refinancing, interest and solvency risk. This constrained capital structure reduces ability to absorb earnings volatility, fund strategic initiatives, or withstand sustained downcycles without disruptive actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Accretive GOJO acquisition expands hygiene platform
The GOJO deal strengthens Clorox's exposure to higher-growth health & hygiene end markets and is already accretive to EPS. Over the next 2–3 years, realized revenue synergies and higher-margin hygiene sales can diversify mix, support margin resilience and sustain organic growth.
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
$12.90B
Dividend Yield4.66%
Average Volume (3M)2.30M
Price to Earnings (P/E)22.1
Beta (1Y)0.27
Revenue Growth-5.41%
EPS Growth-26.46%
CountryUS
Employees9,200
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)4.82
Shares Outstanding120,931,010
10 Day Avg. Volume2,364,874
30 Day Avg. Volume2,295,291
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)129.14
Price to Sales (P/S)1.73
P/FCF Ratio28.70
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$96.69Price Target Upside1.20% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering14
EPS Forecast (FY)5.81
Revenue Forecast (FY)$7.63B
Clorox Business Overview & Revenue Model
Company Description
The Clorox Company is a global manufacturer and marketer of both consumer and professional products, operating through four distinct segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness division offers a ...
How the Company Makes Money
Clorox makes money primarily by selling branded consumer packaged goods to retailers and other channel partners, which then sell to end consumers. Revenue is generated across product categories that include cleaning and disinfecting products, hous...
Clorox Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: several strategic and operational positives (GOJO performing ahead of plan and accretive, ERP completion with productivity gains expected, restored distribution, innovation ramp, and stable free cash flow guidance) are countered by material near-term headwinds ( >$200M of inflation, front-half gross margin pressure, elevated promotions, category-specific challenges in litter and grilling, and a wider EPS range). Management emphasized targeted pricing, productivity, and reinvestment to offset cost pressures and expects improvements in the back half of the year.Positive Updates
GOJO Acquisition Performing Better Than Expected
Clorox reported GOJO (Clorox PURELL) was accretive in Q4 (earlier expected neutral) and is expected to be accretive to adjusted EPS in FY2027; management expects GOJO to grow mid-single digits initially and mid- to high-single digits over the next few years as revenue synergies are realized.
Negative Updates
Elevated Inflation Headwind
FY2027 inflation expected to exceed $200 million (more than double historical $75–$100 million range), concentrated in the first half of the year and expected to pressure gross margin (management referenced a FY2027 gross margin guide ~42%).
Read all updates
Q4-2026 Updates
Positive
Negative
GOJO Acquisition Performing Better Than Expected
Clorox reported GOJO (Clorox PURELL) was accretive in Q4 (earlier expected neutral) and is expected to be accretive to adjusted EPS in FY2027; management expects GOJO to grow mid-single digits initially and mid- to high-single digits over the next few years as revenue synergies are realized.
Read all positive updates
Company Guidance
Clorox guided to flat-to-slightly‑positive organic sales for fiscal 2027 (with a Q1 timing “blip” from Kingsford/grilling and Prime Day), warned that inflation will exceed $200 million (with the impact front‑loaded in H1) and assumed Brent around $90/barrel, targeted a ~42% gross margin, and expects free cash flow roughly in its 11%–13% of sales range; SG&A was guided near 16% of sales (including roughly 40 bps of GOJO transaction costs), with GOJO expected to grow mid‑single digits (mid‑to‑high single digits as synergies are realized), contribute ~0.5 point gross‑margin dilution, add <1 point to SG&A and reduce advertising by ~1 point, and advertising (ex‑GOJO) running north of 11% of sales; interest expense was noted at about $210 million, Home Care has delivered eight consecutive quarters of share gains, June exit consumption/share trends were nearly flat, and management said EPS guidance is wider than usual because of commodity/timing volatility and ERP lapping but expects gross‑margin recovery in the back half of the year.Clorox Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
24
Negative
Cash Flow
60
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.72B | 7.10B | 7.09B | 7.39B | 7.11B |
| Gross Profit | 2.84B | 3.21B | 3.05B | 2.91B | 2.54B |
| EBITDA | 921.00M | 1.39B | 723.00M | 564.00M | 937.00M |
| Net Income | 587.00M | 810.00M | 280.00M | 149.00M | 462.00M |
Balance Sheet | |||||
| Total Assets | 7.79B | 5.56B | 5.75B | 5.95B | 6.16B |
| Cash, Cash Equivalents and Short-Term Investments | 143.00M | 167.00M | 202.00M | 367.00M | 183.00M |
| Total Debt | 5.52B | 2.88B | 2.90B | 2.92B | 3.10B |
| Total Liabilities | 7.54B | 5.08B | 5.26B | 5.56B | 5.43B |
| Stockholders Equity | 90.00M | 321.00M | 328.00M | 220.00M | 556.00M |
Cash Flow | |||||
| Free Cash Flow | 405.00M | 761.00M | 483.00M | 930.00M | 535.00M |
| Operating Cash Flow | 612.00M | 981.00M | 695.00M | 1.16B | 786.00M |
| Investing Cash Flow | -2.30B | -94.00M | -175.00M | -223.00M | -229.00M |
| Financing Cash Flow | 1.67B | -924.00M | -655.00M | -753.00M | -689.00M |
Clorox Technical Analysis
Positive
95.55
Price Trends
98.04
Positive
96.39
Positive
101.24
Positive
Market Momentum
2.84
Negative
62.35
Neutral
57.85
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 95.55 is below the 20-day moving average (MA) of 103.05, below the 50-day MA of 98.04, and below the 200-day MA of 101.24, indicating a bullish trend. The MACD of 2.84 indicates Negative momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 57.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $336.30B | 21.43 | 29.84% | 2.91% | 3.26% | 1.15% | |
75 Outperform | $23.44B | 31.67 | 17.78% | 1.23% | 2.69% | 46.04% | |
64 Neutral | $36.35B | 18.59 | 122.57% | 4.63% | -12.19% | -19.22% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $72.61B | 35.80 | 631.14% | 2.31% | 5.24% | -29.04% | |
58 Neutral | $36.88B | 203.88 | 4.63% | 1.74% | 5.51% | ― | |
57 Neutral | $12.90B | 22.13 | -1893.55% | 5.19% | -5.41% | -26.46% |
* Consumer Defensive Sector Average
CLX
Clorox
106.69
-7.38
-6.47%
CHD
Church & Dwight
98.80
7.23
7.90%
CL
Colgate-Palmolive
91.08
9.07
11.06%
EL
The Estée Lauder Companies
101.94
14.54
16.64%
KMB
Kimberly Clark
109.31
-15.34
-12.30%
PG
Procter & Gamble
144.68
-7.01
-4.62%
Clorox Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Clorox Reports Weaker Fiscal 2026 Results Amid Costs
Negative
Aug 3, 2026
In fiscal 2026, which ended June 30, Clorox reported softer financial performance, with fourth-quarter net sales down 2 percent and full-year sales falling 5 percent to $6.72 billion, as it lapped unusually strong ERP-related shipments and absorbe...
Business Operations and StrategyExecutive/Board Changes
Clorox Restructures Leadership, Appoints New COO and Strategist
Positive
Jun 17, 2026
On June 14, 2026, Clorox’s board committee appointed longtime executive Chris Hyder as executive vice president and chief operating officer, effective June 17, 2026, consolidating leadership of all business units under a single executive whi...
Business Operations and StrategyExecutive/Board Changes
Clorox Initiates CEO Succession Following Linda Rendle’s Exit
Negative
May 28, 2026
The Clorox Company announced on May 28, 2026, that Chair and CEO Linda Rendle has asked the board to begin a comprehensive search for a new chief executive as she plans to step down for health reasons. Rendle, who has led Clorox for six years and ...
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...
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.