Clorox (CLX) AI Stock Analysis

• Market Cap: $15.17B
• Dividend Yield: 3.96%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.30
• Revenue Growth: -2.64%
• EPS Growth: 189.29%
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Household & Personal Products
• EPS (TTM): 1.45
• Shares Outstanding: 123,252,810
• 10 Day Avg. Volume: 1,410,106
• 30 Day Avg. Volume: 1,671,980
• PEG Ratio: -1.95
• Price to Book (P/B): 89.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.14
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 7.01
• Enterprise Value/Ebitda: 5.61
• 1Y Price Target: $145.00
• Price Target Upside: 17.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 62 Neutral
• Price Target: $146.00 ▲(18.63%Upside)

Clorox's mixed financial performance, marked by strong cash flow but high leverage, is offset by bearish technical momentum. While the company benefits from brand stability and innovation, its premium valuation and earnings challenges weigh on the overall score. The stock's position below major moving averages further suggests caution.

Positive Factors

Acquisition

CLX announced that they are acquiring PG's interest in Glad, which could be incremental to EPS in the long-run as the acquisition would reduce future royalty payments.

Market Share

Clorox grew share in most of their businesses for the second quarter in a row.

Negative Factors

Earnings

Clorox reported modest sales and earnings misses due to the volatile consumer and retail environments.

Financial Performance

Clorox's valuation has compressed even relative to HPC peers with similar drivers of softness.

Clorox Business Overview & Revenue Model

Company Description

The Clorox Company, commonly known as Clorox, is a global leader in the manufacturing and marketing of consumer and professional products. Based in Oakland, California, the company operates in several sectors, including cleaning, household, lifestyle, and international. Its core product offerings include bleach and cleaning products, which are part of its iconic bleach brand, as well as other well-known brands like Pine-Sol, Liquid-Plumr, and Glad. Clorox also produces and sells a range of lifestyle products, including those under the Burt's Bees brand, and offers solutions for the healthcare and professional industries.

How the Company Makes Money

Clorox generates revenue through the sale of its consumer and professional products across various categories, including cleaning, household, lifestyle, and international products. A significant portion of its income comes from the sale of cleaning and disinfecting products, which are marketed under well-established brand names. The company operates a diversified business model with several revenue streams, including the sale of products through retail channels such as supermarkets, mass retailers, and online platforms. Additionally, Clorox benefits from strategic partnerships and distribution agreements, enabling it to expand its market reach and maintain a strong presence in both domestic and international markets. The company's focus on innovation, brand strength, and operational efficiency also plays a crucial role in sustaining its profitability.

Clorox Financial Statement Overview

Summary

Clorox presents a mixed financial picture. Strong gross profit margins and robust cash flow growth are offset by challenges in revenue growth and net profitability. The high debt-to-equity ratio indicates significant financial leverage, which poses a risk given the low equity base.

Income Statement

Clorox demonstrates strong gross profit margins with a recent TTM (Trailing-Twelve-Months) rate of 45.14%, indicating efficient cost management. However, net profit margins have fluctuated, currently at 9.88%, showing some instability in profitability. Revenue growth has been inconsistent, with a recent decline of 1.04% from the previous year, signaling potential challenges in maintaining top-line growth. EBIT and EBITDA margins reflect healthy operating efficiency, though the slight decrease in EBIT margin suggests room for improvement.

Balance Sheet

The company exhibits a high debt-to-equity ratio due to a low equity base, posing a potential risk. With a debt-to-equity ratio of 109.04, financial leverage is significant. Return on Equity (ROE) is robust at 2,570.37%, driven by low equity rather than high profitability, indicating risk. Equity ratio is notably low at 0.49%, highlighting reliance on debt financing.

Cash Flow

Clorox shows strong cash flow dynamics with a free cash flow growth rate of 65.84% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.48, suggesting efficient conversion of net income into cash. Free cash flow to net income ratio is also strong at 1.15, underscoring solid cash performance relative to earnings.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
7.02B	7.09B	7.39B	7.11B	7.34B	6.72B
	Gross Profit
3.17B	3.05B	2.91B	2.54B	3.20B	3.06B
	EBIT
1.29B	916.00M	1.22B	489.00M	1.12B	1.10B
	EBITDA
1.38B	736.00M	577.00M	928.00M	1.20B	1.46B
	Net Income Common Stockholders
694.00M	280.00M	149.00M	462.00M	710.00M	939.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
226.00M	202.00M	367.00M	183.00M	319.00M	871.00M
	Total Assets
5.51B	5.75B	5.95B	6.16B	6.33B	6.21B
	Total Debt
2.94B	2.90B	2.92B	3.10B	3.17B	3.12B
	Net Debt
2.72B	2.70B	2.56B	2.92B	2.85B	2.25B
	Total Liabilities
5.32B	5.26B	5.56B	5.43B	5.74B	5.30B
	Stockholders Equity
27.00M	328.00M	220.00M	556.00M	411.00M	908.00M
Cash Flow		Free Cash Flow
801.00M	483.00M	930.00M	535.00M	945.00M	1.29B
	Operating Cash Flow
1.03B	695.00M	1.16B	786.00M	1.28B	1.55B
	Investing Cash Flow
-99.00M	-175.00M	-223.00M	-229.00M	-452.00M	-252.00M
	Financing Cash Flow
-918.00M	-655.00M	-753.00M	-689.00M	-1.39B	-523.00M

Clorox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 123.07
• 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 123.07 is below the 20-day moving average (MA) of 129.98, below the 50-day MA of 135.04, and below the 200-day MA of 151.03, indicating a bearish trend. The MACD of -2.93 indicates Positive momentum. The RSI at 27.51 is Positive, neither overbought nor oversold. The STOCH value of 12.75 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	$382.58B	25.46	30.29%	2.64%	-0.16%	2.74%
KMB	68 Neutral	$43.41B	17.83	229.84%	3.85%	-3.12%	34.80%
KVUE	68 Neutral	$41.18B	39.11	10.22%	3.82%	-1.18%	-29.18%
CHD	65 Neutral	$23.91B	41.66	13.35%	1.22%	2.18%	-26.08%
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%
CL	64 Neutral	$73.15B	25.56	977.07%	2.30%	0.98%	12.12%
CLX	62 Neutral	$15.17B	22.10	1176.27%	3.96%	-2.64%	189.29%

Clorox Corporate Events

Clorox Amends Bylaws to Enhance Shareholder Engagement

On May 19, 2025, Clorox‘s Board of Directors amended the company’s bylaws to introduce a process for addressing deficiencies in director nomination notices submitted by shareholders. This change allows shareholders to correct any issues within a specified timeframe, potentially impacting shareholder engagement and governance processes.

The most recent analyst rating on (CLX) stock is a Hold with a $154.00 price target. To see the full list of analyst forecasts on Clorox stock, see the CLX Stock Forecast page.

Clorox Appoints Gina Boswell to Board of Directors

On May 11, 2025, The Clorox Company announced the election of Gina Boswell to its Board of Directors, effective May 19, 2025. Boswell, who is the CEO of Bath & Body Works, brings extensive experience in the consumer goods sector, having held senior roles at companies like Unilever and Avon. Her appointment is expected to enhance Clorox’s business strategy and growth, contributing to the company’s focus on delivering superior value and profitable growth.

The most recent analyst rating on (CLX) stock is a Hold with a $165.00 price target. To see the full list of analyst forecasts on Clorox stock, see the CLX Stock Forecast page.

Clorox Reports Q3 2025 Results with Sales Decline

In its third-quarter fiscal year 2025 results, Clorox reported an 8% decrease in net sales to $1.67 billion, primarily due to divestitures, but achieved a 240 basis point increase in gross margin. The company maintained market shares and achieved its tenth consecutive quarter of gross margin expansion, despite a challenging consumer and geopolitical environment. Clorox updated its fiscal year 2025 outlook to reflect macroeconomic changes and expects net sales to be down 1% to flat, with organic sales growth of 4% to 5%. The company remains confident in its ability to navigate short-term challenges and advance its long-term strategy.

Clorox Secures New $1.2 Billion Credit Agreement

On March 25, 2025, Clorox entered into a new $1.2 billion five-year unsecured revolving credit agreement with major banks including JPMorgan Chase, Citibank, and Wells Fargo, replacing a similar agreement from 2022. This move, which incurred no termination fees, aims to support general corporate purposes and reflects Clorox’s ongoing financial strategy and relationships with key financial institutions.