Clorox (CLX) AI Stock Analysis

• Market Cap: $12.77B
• Dividend Yield: 4.68%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.22
• 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: 2,455,550
• 30 Day Avg. Volume: 1,823,239
• 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: 1.43
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: 12.61
• 1Y Price Target: $126.00
• Price Target Upside: 20.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $112.00 ▲(6.97% Upside)

Clorox's overall stock score is primarily impacted by financial instability due to high leverage and negative equity. Technical indicators show bearish momentum, while valuation offers some support with a reasonable P/E ratio and attractive dividend yield. The earnings call highlights both strategic progress and ongoing challenges, contributing to a cautious outlook.

Positive Factors

Innovation Across Major Brands

Continued innovation in major brands can drive long-term growth and enhance competitive positioning by meeting evolving consumer needs.

Successful ERP System Launch

The new ERP system strengthens Clorox's digital infrastructure, potentially improving operational efficiency and unlocking new value streams.

Improved Commodity Cost Outlook

A more favorable commodity cost outlook can enhance margin sustainability, providing financial flexibility for strategic investments.

Negative Factors

High Leverage and Negative Equity

High leverage and negative equity pose risks to financial stability, potentially limiting Clorox's ability to invest in growth opportunities.

Negative Organic Sales Growth

Declining organic sales growth indicates challenges in maintaining market share and consumer demand, impacting long-term revenue potential.

Competitive Environment in Key Categories

Intense competition in key categories can erode market share and pricing power, challenging Clorox's ability to sustain margins.

Clorox Business Overview & Revenue Model

Company Description

Clorox Company (CLX) is a leading global consumer and professional products company, primarily known for its cleaning and disinfecting products. Founded in 1913, Clorox operates in several sectors including household cleaning, professional cleaning, and health and wellness. The company's extensive portfolio includes iconic brands such as Clorox bleach, Pine-Sol, and Glad, among others, which are designed to meet the needs of consumers and businesses alike. Clorox is dedicated to sustainability and innovation, continually developing new products that enhance the safety and cleanliness of homes and workplaces.

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 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	3.00B	3.21B	3.05B	2.91B	2.54B	3.20B
EBITDA	1.45B	1.39B	723.00M	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: 104.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 104.7 is below the 20-day moving average (MA) of 112.25, below the 50-day MA of 117.64, and below the 200-day MA of 128.63, indicating a bearish trend. The MACD of -3.67 indicates Positive momentum. The RSI at 27.16 is Positive, neither overbought nor oversold. The STOCH value of 7.28 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
PG	74 Outperform	$339.99B	21.24	31.90%	2.81%	1.23%	17.97%
CHD	72 Outperform	$20.32B	26.65	18.59%	1.39%	1.45%	42.04%
CL	63 Neutral	$63.25B	21.99	450.35%	2.62%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	62 Neutral	$34.21B	17.46	136.87%	4.80%	-10.04%	-23.41%
EL	61 Neutral	$32.30B	―	-20.73%	1.43%	-6.36%	-554.84%
CLX	53 Neutral	$12.77B	16.41	4163.16%	4.68%	-9.35%	123.06%

Clorox Corporate Events

Clorox’s Earnings Call: Mixed Sentiments Amid ERP Success

In the recent earnings call, Clorox Company presented a mixed sentiment, highlighting both achievements and challenges. The company celebrated significant milestones, such as the successful implementation of a new ERP system and ongoing innovations across major brands. However, these positives were tempered by concerns over organic sales growth and competitive pressures. Despite these hurdles, Clorox expressed confidence in its strategic plans moving forward, while acknowledging the current market headwinds.

Clorox Reports Q1 2026 Earnings Decline Amid ERP Transition

The Clorox Company, a leading player in the consumer goods sector, is renowned for its diverse range of household and personal care products, including well-known brands like Clorox, Glad, and Burt’s Bees. Headquartered in Oakland, California, Clorox has a strong commitment to sustainability and innovation.

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.

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 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.

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.