Clorox (CLX)
NYSE:CLX
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Clorox
(NYSE:CLX)
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Rating:56Neutral
Price Target:
$107.00
▲(3.84% Upside)
Action:ReiteratedDate:04/02/26
CLX scores mid-range primarily because improving profitability and solid free cash flow are offset by a highly pressured balance sheet (negative equity, high debt) and weak revenue trend. Technicals are also bearish, while valuation is helped by a high dividend yield and a reasonable P/E. Guidance was reaffirmed with expected back-half margin improvement, but near-term category and promotional pressures plus ERP-related volatility keep the overall score restrained.
Positive Factors
Free Cash Flow Generation
Sustained FCF (~$778M) and strong operating cash generation (~$984M TTM) provide durable funding for dividends, reinvestment, and strategic moves (e.g., GOJO). Reliable cash flow supports capital allocation and gives management flexibility to fund innovation or pay down debt over the medium term.
Negative Factors
High Leverage & Weak Equity Base
Elevated debt (~$3.2B) combined with negative shareholders' equity materially constrains financial flexibility. High leverage limits ability to absorb shocks, raises refinancing and covenant risk, and reduces capacity for organic investment or accretive M&A without careful deleveraging over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained FCF (~$778M) and strong operating cash generation (~$984M TTM) provide durable funding for dividends, reinvestment, and strategic moves (e.g., GOJO). Reliable cash flow supports capital allocation and gives management flexibility to fund innovation or pay down debt over the medium term.
Read all positive factors
Clorox (CLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.46B
Dividend Yield5.05%
Average Volume (3M)2.10M
Price to Earnings (P/E)19.5
Beta (1Y)0.22
Revenue Growth-9.35%
EPS Growth123.06%
CountryUS
Employees7,400
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.39
Shares Outstanding120,911,865
10 Day Avg. Volume2,111,366
30 Day Avg. Volume2,102,301
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 Cap1.27
Enterprise Value/Revenue2.35
Enterprise Value/Gross Profit5.34
Enterprise Value/Ebitda12.08
Forecast
1Y Price Target
$115.33Price Target Upside11.93% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)5.91
Revenue Forecast (FY)$6.52B
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 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 Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call balanced clear execution progress (ERP completion, stronger digital/RGM capabilities, a robust back-half innovation slate, and strategic health/hygiene expansion) with near-term operational and category challenges (flat category growth, household pricing/volume weakness, elevated promotions, and ERP-related supply-chain noise). Management reaffirmed guidance, sees sequential improvement, and expects margin recovery in Q4, but meaningful recovery depends on innovation ramp and category demand. The positives and negatives were comparably weighted, with cautious optimism for the back half.Positive Updates
ERP Implementation Near Completion
Completed final phase of ERP in January; final-phase prebuild caused ~1 point shipment favorability in Q2 that is expected to reverse in Q3. Management expects remaining one-time digital/ERP adjustments (~$0.08 EPS in Q3) to finish and normalization benefits to contribute to FY27 (shipment normalization ~+3.5 points of sales and estimated EPS pickup ~+$0.90).
Negative Updates
Category Growth Weakness and Guidance
Core categories were roughly flat in Q1 and Q2; company expects category growth of ~0% to 1% in the back half — well below historical norms and below the company's long-term Ignite algorithm (3–5% net sales growth requires category recovery to ~2–2.5% plus ~1% from pro/international).
Read all updates
Q2-2026 Updates
Positive
Negative
ERP Implementation Near Completion
Completed final phase of ERP in January; final-phase prebuild caused ~1 point shipment favorability in Q2 that is expected to reverse in Q3. Management expects remaining one-time digital/ERP adjustments (~$0.08 EPS in Q3) to finish and normalization benefits to contribute to FY27 (shipment normalization ~+3.5 points of sales and estimated EPS pickup ~+$0.90).
Read all positive updates
Company Guidance
Clorox reaffirmed its guidance and said it expects category growth of 0–1% in the back half after Q1–Q2 were roughly flat (Q2 about -0.1% ex‑beauty) with sequential improvement and recent share gains; Q2 included roughly 1 point of shipment favorability from ERP prebuild that should unwind in Q3, and ERP phasing results imply about a 3.5‑point sales pickup and ~$0.90 EPS benefit in the next fiscal year; the company is targeting advertising at ~11% of sales (H1 ~11.5%), sees ~1% full‑year price/mix headwind (household pricing was negative in Q2), reported Q2 EBIT margin of 5.3%, expects Q3 gross margin roughly flat and solid expansion in Q4 (including ~50 bps benefit from the Glad JV termination), and flagged roughly $0.08 of digital/ERP‑related adjustments in Q3 before anticipated automation, cost‑savings run‑rate gains and further margin improvement.Clorox Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
32
Negative
Cash Flow
60
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 | 2.98B | 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
Negative
103.04
Price Trends
114.34
Negative
108.53
Negative
113.58
Negative
Market Momentum
-3.46
Negative
38.92
Neutral
47.48
Neutral
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 103.04 is below the 20-day moving average (MA) of 106.45, below the 50-day MA of 114.34, and below the 200-day MA of 113.58, indicating a bearish trend. The MACD of -3.46 indicates Negative momentum. The RSI at 38.92 is Neutral, neither overbought nor oversold. The STOCH value of 47.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $328.38B | 20.05 | 31.23% | 2.92% | 1.23% | 17.97% | |
73 Outperform | $21.91B | 27.62 | 17.16% | 1.38% | 1.45% | 42.04% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $66.63B | -429.64 | 431.59% | 2.67% | -0.05% | 2.49% | |
61 Neutral | $30.89B | 16.63 | 155.28% | 5.03% | -10.04% | -23.41% | |
56 Neutral | $12.46B | 19.52 | 1502.49% | 5.05% | -9.35% | 123.06% | |
47 Neutral | $25.02B | 58.52 | -4.41% | 1.30% | -6.36% | -554.84% |
* Consumer Defensive Sector Average
CLX
Clorox
103.04
-31.27
-23.28%
CHD
Church & Dwight
92.55
-8.05
-8.00%
CL
Colgate-Palmolive
83.13
-4.93
-5.60%
EL
The Estée Lauder Companies
69.17
13.89
25.13%
KMB
Kimberly Clark
93.05
-36.35
-28.09%
PG
Procter & Gamble
141.30
-16.69
-10.56%
Clorox Corporate Events
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...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsProduct-Related Announcements
Clorox Posts Mixed Q2 Results, Reaffirms 2026 Outlook
Negative
Feb 3, 2026
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...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Clorox to Acquire GOJO, Expanding Hygiene Portfolio
Positive
Jan 22, 2026
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 t...
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.