Clorox (CLX) AI Stock Analysis

Clorox

(BMV:CLX)

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Positive Factors

Market Share MomentumRepeated share gains across Home Care, Pro and International indicate that Clorox retains meaningful brand equity and retailer relevance. This supports durable distribution, repeat purchasing and pricing power, while the breadth of gains reduces reliance on a single product category.

Negative Factors

Extreme LeverageClorox’s debt-heavy capital structure leaves a very small equity cushion relative to $5.52 billion of debt. That magnifies the effect of earnings swings, raises refinancing exposure and limits flexibility to invest, absorb setbacks or pursue growth without prioritizing balance-sheet repair.

Clorox (CLX) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 10.64B
Dividend Yield: 5.53%
Average Volume (3M): 312
Price to Earnings (P/E): 18.3
Beta (1Y): 0.66
Revenue Growth: -14.02%
EPS Growth: -33.65%
Country: Mexico
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:Aug 02, 2026(Q4-2026)|% Change Since:1.74%|Next Earnings Date:Nov 01, 2026

Earnings Call SentimentNeutral

The call presented a balanced picture: several strategic and operational positives (GOJO performing ahead of plan and accretive, ERP completion with productivity gains expected, restored distribution, innovation ramp, and stable free cash flow guidance) are countered by material near-term headwinds ( >$200M of inflation, front-half gross margin pressure, elevated promotions, category-specific challenges in litter and grilling, and a wider EPS range). Management emphasized targeted pricing, productivity, and reinvestment to offset cost pressures and expects improvements in the back half of the year.

Positive Updates

GOJO Acquisition Performing Better Than Expected

Clorox reported GOJO (Clorox PURELL) was accretive in Q4 (earlier expected neutral) and is expected to be accretive to adjusted EPS in FY2027; management expects GOJO to grow mid-single digits initially and mid- to high-single digits over the next few years as revenue synergies are realized.

Negative Updates

Elevated Inflation Headwind

FY2027 inflation expected to exceed $200 million (more than double historical $75–$100 million range), concentrated in the first half of the year and expected to pressure gross margin (management referenced a FY2027 gross margin guide ~42%).

Company Guidance

Clorox guided to flat-to-slightly‑positive organic sales for fiscal 2027 (with a Q1 timing “blip” from Kingsford/grilling and Prime Day), warned that inflation will exceed $200 million (with the impact front‑loaded in H1) and assumed Brent around $90/barrel, targeted a ~42% gross margin, and expects free cash flow roughly in its 11%–13% of sales range; SG&A was guided near 16% of sales (including roughly 40 bps of GOJO transaction costs), with GOJO expected to grow mid‑single digits (mid‑to‑high single digits as synergies are realized), contribute ~0.5 point gross‑margin dilution, add <1 point to SG&A and reduce advertising by ~1 point, and advertising (ex‑GOJO) running north of 11% of sales; interest expense was noted at about $210 million, Home Care has delivered eight consecutive quarters of share gains, June exit consumption/share trends were nearly flat, and management said EPS guidance is wider than usual because of commodity/timing volatility and ERP lapping but expects gross‑margin recovery in the back half of the year.

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

MX:CLX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHD	78Outperform	$25.44B	32.89	18.21%	1.14%	1.70%	2.07%
KMB	78Outperform	$35.90B	18.36	122.57%	4.72%	-12.19%	-19.22%
PG	72Outperform	$374.48B	23.94	29.55%	2.68%	3.52%	-3.74%
CL	67Neutral	$75.96B	37.02	1135.82%	2.21%	5.91%	-28.30%
UL	64Neutral	$140.57B	13.75	58.26%	3.41%	-17.45%	8.84%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

* Consumer Defensive Sector Average

Performance Comparison

MX:CLX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:CLX	Clorox Company	1675.00	-323.25	-16.18%
CHD	Church & Dwight Company	107.23	22.05	25.89%
CL	Colgate-palmolive Company	95.29	22.07	30.14%
KMB	Kimberly Clark	107.94	10.65	10.95%
PG	Procter & Gamble Company	161.57	17.72	12.32%
UL	Unilever plc	65.26	2.43	3.87%

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