Clorox (1CLX) AI Stock Analysis

Clorox

(Milan:1CLX)

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Positive Factors

Broad-based market-share gainsShare gains across multiple branded categories indicate improving execution and consumer acceptance rather than reliance on one product. Continued innovation, merchandising and brand investment can reinforce retailer support and strengthen Clorox’s competitive position over the next several quarters.

Negative Factors

Very high leverage and thin equityThe debt-heavy capital structure leaves little equity buffer against earnings volatility and reduces financial flexibility. High leverage can constrain investment, increase refinancing exposure and make cash allocation more sensitive to operating weakness over the next several quarters.

Clorox (1CLX) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 10.87B
Dividend Yield: 5.57%
Average Volume (3M): 22
Price to Earnings (P/E): 16.2
Beta (1Y): 0.22
Revenue Growth: -11.66%
EPS Growth: -31.03%
Country: Italy
Employees: 9,200
Sector: Consumer Defensive
Sector Strength: 62
Industry: Household & Personal Products

Clorox Business Overview & Revenue Model

Company Description

The Clorox Company is a global manufacturer and marketer of both consumer and professional products, operating through four distinct segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness division offers a ran...

Clorox Earnings Call Summary

Earnings Call Date:Nov 01, 2026(Q1-2027)|% Change Since:0.00%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

The call was cautiously optimistic. Clorox reported a better-than-expected start, improving consumption and market-share trends, strong cost savings, positive GOJO integration progress and a robust innovation pipeline. However, these positives are being offset in the near term by $240 million of input cost inflation, front-half gross-margin compression, modest organic sales growth excluding the ERP benefit, elevated competition, consumer value-seeking behavior and continued weakness in Cat Litter. Overall, the highlights outweigh the lowlights, but management remains focused on executing a gradual recovery.

Positive Updates

Better-Than-Expected First-Quarter Performance

Clorox delivered better-than-expected fiscal year 2027 first-quarter results through strong execution and favorable timing benefits. Management said the underlying trajectory is improving, with steady progress in organic sales growth and market share.

Negative Updates

Elevated Input Cost Inflation

Fiscal-year input cost inflation is now expected to be about $240 million, approximately $40 million higher than the initial forecast and about 2.5 times the historical annual average rate. The increase is driven by commodities, resin, supplier costs, transportation and other logistics costs; the outlook assumes an annual average Brent price of around $100.

Company Guidance

Management expects fiscal year organic sales growth of 3.5% to 4.5%, including about 3.5 points of benefit from lapping the ERP transition, or flat to plus 1% excluding the ERP; excluding the ERP, growth is expected to be down slightly in the front half and up slightly in the back half, while category growth is expected to be flat to up 1%. Input cost inflation is expected to be about $240 million, about $40 million more than initially expected and about 2.5x higher our historical annual average rate, assuming Brent annual average price would be around $100, with inflation more pronounced in the first half than in the second half. The company expects gross margin compression on average for the full year, with the front half about 1 point, 1.5 below the average and the back half higher, while SG&A moved from 16% to 15%; the long-term objective remains historical EBIT margin of about 18% and historical gross margin of 43.5% and 44%. Cost synergies from GOJO are estimated at about $50 million, with line of sight to the entire $50 million and potentially more.

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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

IT:1CLX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHD	78Outperform	$25.44B	33.88	18.21%	1.10%	1.70%	2.07%
PG	72Outperform	$374.48B	24.23	29.55%	2.64%	3.52%	-3.74%
KMB	70Outperform	$35.90B	18.41	122.57%	4.71%	-12.19%	-19.22%
CL	67Neutral	$75.96B	37.85	1135.82%	2.17%	5.91%	-28.30%
UL	64Neutral	$140.61B	13.82	58.26%	3.35%	-17.45%	8.84%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

* Consumer Defensive Sector Average

Performance Comparison

IT:1CLX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1CLX	Clorox Company	79.58	-11.79	-12.90%
CHD	Church & Dwight Company	110.45	24.89	29.09%
CL	Colgate-palmolive Company	97.43	22.32	29.72%
KMB	Kimberly Clark	108.25	13.07	13.74%
PG	Procter & Gamble Company	163.56	21.88	15.44%
UL	Unilever plc	66.44	2.97	4.68%

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.

Clorox AI Stock Analysis