Clorox (CLX) AI Stock Analysis

• Market Cap: $16.80B
• Dividend Yield: 3.58%
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.28
• Revenue Growth: -2.64%
• EPS Growth: 189.29%
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 72
• Industry: Household & Personal Products
• EPS (TTM): 1.45
• Shares Outstanding: 123,252,810
• 10 Day Avg. Volume: 1,996,701
• 30 Day Avg. Volume: 1,579,386
• PEG Ratio: 0.46
• Price to Book (P/B): 615.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.74
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 4.88
• 1Y Price Target: $145.17
• Price Target Upside: 7.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

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

Business Acquisition

Clorox 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 Growth

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

Retail Environment Challenges

Clorox's domestic business performance declined by approximately 3%, trailing retail sales by three to four points.

Sales and Earnings Performance

Clorox reported a 3Q sales and earnings miss due to slower category growth from a weaker consumer.

Tariff Impact

Management estimated a 12-month tariff impact of $100M (2.6% of COGS) if unmitigated.

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 gross profit margins and robust cash flow dynamics. However, challenges in revenue growth and net profitability stability, combined with high financial leverage, raise concerns. The company's balance sheet indicates potential risk due to a high debt-to-equity ratio. Overall, while operational efficiency and cash management are strong, attention to leverage and revenue growth is advisable.

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: 134.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 134.84 is below the 20-day moving average (MA) of 137.60, below the 50-day MA of 140.61, and below the 200-day MA of 152.15, indicating a bearish trend. The MACD of -1.65 indicates Positive momentum. The RSI at 43.40 is Neutral, neither overbought nor oversold. The STOCH value of 50.93 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	$382.82B	25.93	30.29%	2.50%	-0.16%	2.74%
KVUE	73 Outperform	$46.42B	44.09	10.22%	3.37%	-1.18%	-29.18%
KMB	70 Outperform	$46.15B	18.95	229.84%	3.54%	-3.12%	34.80%
Sector *	64 Neutral	$8.82B	14.70	4.78%	173.90%	3.26%	2.11%
CHD	63 Neutral	$23.60B	41.11	13.35%	1.20%	2.18%	-26.08%
CL	63 Neutral	$74.35B	25.83	977.07%	2.21%	0.98%	12.12%
CLX	62 Neutral	$16.80B	24.47	1176.27%	3.58%	-2.64%	189.29%

Clorox Corporate Events

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.

Spark’s Take on CLX Stock

According to Spark, TipRanks’ AI Analyst, CLX is a Neutral.

Clorox’s overall score reflects a mixed outlook. Strong operational efficiency and cash management are key strengths, while high leverage and revenue growth concerns pose risks. The stock’s bearish technical momentum and premium valuation limit immediate upside potential, but the company’s focus on innovation and brand stability offers long-term promise amid macroeconomic challenges.

To see Spark’s full report on CLX stock, click here.

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.

Spark’s Take on CLX Stock

According to Spark, TipRanks’ AI Analyst, CLX is a Neutral.

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.

To see Spark’s full report on CLX stock, click here.

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.