📊 CLX Key Takeaways
Is Clorox Co /DE/ (CLX) a Good Investment?
Clorox exhibits deteriorating fundamentals with near-zero revenue growth (+0.2%) and declining net income (-1.7% YoY), masked by artificial EPS growth from share buybacks. Critical balance sheet stress with negative stockholders' equity (-$67M) and poor liquidity ratios (0.84x current, 0.65x quick) creates meaningful refinancing and operational risk despite modest positive free cash flow.
Clorox shows resilient core fundamentals with solid gross margins, double-digit free cash flow margin, and operating income that supports interest obligations. However, revenue growth is essentially flat, net income slipped year over year, and the balance sheet is strained by negative equity, weak liquidity, and meaningful debt, which limits flexibility.
Why Buy Clorox Co /DE/ Stock? CLX Key Strengths
- Solid gross margins of 42.7% demonstrate pricing power in core cleaning products
- Positive operating cash flow ($282M) and free cash flow ($161M) remain adequate for debt service
- Reasonable interest coverage ratio of 7.7x indicates near-term ability to service debt obligations
- Strong gross margin of 42.5% supports pricing power and brand resilience
- Free cash flow generation remains healthy at $326.00M with a 10.5% FCF margin
- Interest coverage of 6.7x indicates debt service is currently manageable from operations
CLX Stock Risks: Clorox Co /DE/ Investment Risks
- Negative stockholders' equity of -$67M indicates technical insolvency; company liabilities exceed assets
- Current ratio of 0.84x and quick ratio of 0.65x signal tight liquidity and potential working capital stress
- Stagnant revenue growth (+0.2% YoY) combined with declining net income (-1.7% YoY) reflects compressed profitability and operational headwinds
- High leverage ($2.5B long-term debt) relative to shrinking equity base creates vulnerability to economic stress
- EPS growth (+189.8%) driven entirely by share buybacks rather than organic earnings expansion
- Negative stockholders equity signals a highly leveraged capital structure and reduced balance sheet flexibility
- Current ratio of 0.74x and quick ratio of 0.48x point to weak near-term liquidity
- Revenue growth of just 0.2% and net income decline of 1.7% suggest limited earnings momentum
Key Metrics to Watch
- Quarterly revenue growth rate and trend reversal indicators
- Operating cash flow sustainability and free cash flow conversion
- Debt-to-assets ratio and equity trajectory for signs of balance sheet deterioration or stabilization
- Current and quick ratios for evidence of liquidity pressure or improvement
- Operating margin expansion capacity given profitability headwinds
- Free cash flow and operating cash flow conversion
- Liquidity and leverage trends, especially cash balance, current ratio, and long-term debt
Clorox Co /DE/ (CLX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.4% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CLX Profit Margin, ROE & Profitability Analysis
CLX vs Market Sector: How Clorox Co /DE/ Compares
How Clorox Co /DE/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Clorox Co /DE/ Stock Overvalued? CLX Valuation Analysis 2026
Based on fundamental analysis, Clorox Co /DE/ has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Clorox Co /DE/ Balance Sheet: CLX Debt, Cash & Liquidity
CLX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Clorox Co /DE/'s revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $1.20 reflects profitable operations.
CLX Revenue Growth, EPS Growth & YoY Performance
CLX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.7B | $186.0M | $1.50 |
| Q2 2026 | $1.7B | $157.0M | $1.29 |
| Q1 2026 | $1.4B | $80.0M | $0.65 |
| Q3 2025 | $1.7B | -$51.0M | $-0.41 |
| Q2 2025 | $1.7B | $93.0M | $0.75 |
| Q1 2025 | $1.4B | $22.0M | $0.17 |
| Q3 2024 | $1.8B | -$27.0M | $-0.22 |
| Q2 2024 | $1.7B | $93.0M | $0.75 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Clorox Co /DE/ Dividends, Buybacks & Capital Allocation
CLX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Clorox Co /DE/ (CIK: 0000021076)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CLX
What is the AI rating for CLX?
Clorox Co /DE/ (CLX) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLX's key strengths?
Claude: Solid gross margins of 42.7% demonstrate pricing power in core cleaning products. Positive operating cash flow ($282M) and free cash flow ($161M) remain adequate for debt service. ChatGPT: Strong gross margin of 42.5% supports pricing power and brand resilience. Free cash flow generation remains healthy at $326.00M with a 10.5% FCF margin.
What are the risks of investing in CLX?
Claude: Negative stockholders' equity of -$67M indicates technical insolvency; company liabilities exceed assets. Current ratio of 0.84x and quick ratio of 0.65x signal tight liquidity and potential working capital stress. ChatGPT: Negative stockholders equity signals a highly leveraged capital structure and reduced balance sheet flexibility. Current ratio of 0.74x and quick ratio of 0.48x point to weak near-term liquidity.
What is CLX's revenue and growth?
Clorox Co /DE/ reported revenue of $4.8B.
Does CLX pay dividends?
Clorox Co /DE/ pays dividends, with $452.0M distributed to shareholders in the trailing twelve months.
Where can I find CLX SEC filings?
Official SEC filings for Clorox Co /DE/ (CIK: 0000021076) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CLX's EPS?
Clorox Co /DE/ has a diluted EPS of $3.47.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CLX a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Clorox Co /DE/ has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CLX stock overvalued or undervalued?
Valuation metrics for CLX: ROE of N/A (sector avg: 15%), net margin of 8.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CLX stock in 2026?
Our dual AI analysis gives Clorox Co /DE/ a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CLX's free cash flow?
Clorox Co /DE/'s operating cash flow is $282.0M, with capital expenditures of $121.0M. FCF margin is 3.4%.
How does CLX compare to other Market stocks?
Vs Default sector averages: Net margin 8.9% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.84 (avg: 1.8).