Clorox (CLX) AI Stock Analysis

• Market Cap: $17.10B
• Dividend Yield: 3.51%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 37.9
• Beta (1Y): 0.27
• Revenue Growth: -1.98%
• EPS Growth: 474.83%
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 92
• Industry: Household & Personal Products
• EPS (TTM): 3.66
• Shares Outstanding: 123,189,865
• 10 Day Avg. Volume: 1,079,211
• 30 Day Avg. Volume: 1,316,075
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.61
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $152.75
• Price Target Upside: 10.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

Clorox's stock score reflects strong operational efficiency and positive earnings call sentiment but is tempered by high financial leverage and technical weakness. The valuation appears stretched, but the dividend yield provides some support. Temporary challenges from ERP implementation and competitive pressures also weigh on the outlook.

Positive Factors

Earnings

Clorox posted strong F1Q results with EPS well above consensus, indicating strong performance.

Market Share

Clorox gained market share in seven of their eight categories due to strong innovation, especially in the trash bags, bleach, and the Kingsford business.

Negative Factors

Consumer Behavior

There is uncertainty about Clorox's ability to deliver its 3%-5% growth algorithm on a long-term basis as consumers return to pre-pandemic cleaning patterns.

Sales Performance

CLX's Household segment fell short of expectations, with organic sales down -11%.

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 diverse range of consumer and professional products. The company's revenue model is centered around four main segments: Cleaning, Household, Lifestyle, and International. The Cleaning segment includes products such as laundry additives, disinfecting wipes, and all-purpose cleaners. The Household segment covers items like charcoal, cat litter, and food storage solutions. The Lifestyle segment consists of food products, water filtration systems, and dietary supplements. The International segment includes products sold outside the United States. Clorox also benefits from strong brand recognition, strategic marketing, and distribution partnerships, which help maintain its market presence and drive sales across different regions.

Clorox Financial Statement Overview

Summary

Clorox demonstrates strong operational efficiency and cash flow generation but faces challenges with high leverage and negative equity. The company must address its balance sheet weaknesses to ensure long-term financial health while continuing to capitalize on its operational strengths.

Income Statement

The income statement shows a mixed performance. The TTM gross profit margin is impressive at 44.53%, indicating strong cost management. The net profit margin is moderate at 6.38%, reflecting some challenges in controlling expenses beyond cost of goods. Revenue growth has fluctuated, with a recent TTM increase to $7.165 billion from $7.093 billion, but a decline from $7.389 billion the prior year. The EBIT margin of 17.8% suggests good operational efficiency, and the EBITDA margin of 15.1% highlights healthy earnings before accounting for interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet presents some concerns. The debt-to-equity ratio is effectively negative due to a negative stockholders' equity of -$41 million, primarily due to high liabilities. Return on equity is not applicable due to negative equity, and the equity ratio is negative, indicating more liabilities than assets. These factors suggest high financial leverage, posing a potential risk for financial stability.

Cash Flow

Cash flow analysis reflects robust operations. The TTM operating cash flow to net income ratio is strong at 2.02, demonstrating effective cash generation from operations relative to net income. Free cash flow to net income ratio is 1.52, indicating healthy free cash flow generation. Although there was a decline in free cash flow from $930 million to $695 million, the company still maintains a solid cash flow position.

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

Clorox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 138.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 138.78 is below the 20-day moving average (MA) of 140.23, below the 50-day MA of 144.85, and below the 200-day MA of 151.61, indicating a bearish trend. The MACD of -1.89 indicates Negative momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 33.53 is Neutral, 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	$391.38B	26.59	30.29%	2.50%	-0.16%	2.74%
KMB	72 Outperform	$46.35B	18.51	229.84%	3.74%	-3.12%	34.80%
KVUE	68 Neutral	$44.34B	42.94	9.87%	3.54%	0.08%	-32.67%
CLX	64 Neutral	$17.10B	37.93	7616.67%	3.51%	-1.98%	474.83%
Sector *	64 Neutral	$9.24B	14.61	4.35%	185.59%	3.94%	5.78%
CHD	63 Neutral	$25.68B	44.02	14.25%	1.15%	4.08%	-22.34%
CL	63 Neutral	$77.04B	27.06	977.07%	2.13%	0.98%	12.12%

Clorox Corporate Events

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.

Clorox Reports Q2 Sales Drop, Plans Glad Acquisition

Clorox reported a 15% decrease in net sales for Q2 of fiscal year 2025, mainly due to the aftermath of an August 2023 cyberattack and previous business divestitures. Despite the sales drop, gross margins slightly increased, and diluted EPS saw significant growth due to cost savings and insurance recoveries. The company plans to fully acquire P&G’s stake in the Glad joint venture by January 2026, aligning with its strategy to drive growth through innovation and improved operational models. Clorox also updated its fiscal 2025 outlook, expecting net sales to vary slightly and gross margins to increase, supported by improved margin management and lower input costs.