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The Clorox Company (CLX) Stock

The Clorox Company Stock Details, Movements and Public Alerts

The Clorox Company (CLX): 49-Year Dividend Aristocrat Leveraging AI to Halve Innovation Cycles

When Linda Rendle detailed Clorox's IGNITE strategy in fiscal 2025, she emphasized how data and AI capabilities had transformed product development—cutting time from concept to launch in half. The company's portfolio spans disinfectants (Clorox bleach, Scentiva, Poett), trash bags (Glad ForceFlex MaxStrength), pet care (Fresh Step Health Monitoring Litter), personal care (Burt's Bees Boosted Tinted Balm), and food (Hidden Valley Ranch collaborations with Hot Pockets and Taco Bell). Despite Q2 FY2025 sales declining 15% to $1.69 billion from cyberattack recovery comps and divestitures, Rendle delivered 105% EPS growth to $1.54, achieved the ninth straight quarter of gross margin expansion, and raised full-year EPS guidance to $5.52-$5.92. With a 4.26% dividend yield backed by 49 consecutive years of increases and Barron's ranking Clorox #1 on its Most Sustainable Companies list for three straight years, the stock offers defensive income with operational transformation underway.

52-Week Range

$165.17 - $110.61

-31.92% from high · +1.66% from low

Avg Daily Volume

1,969,819

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

18.86

Near market average

Forward P/E

20.00

Earnings expected to decline

PEG Ratio

3.51

Potentially overvalued

Price to Book

47.40

EV/EBITDA

12.94

EPS (TTM)

$6.52

Price to Sales

2.12

Beta

0.52

Less volatile than market

How is CLX valued relative to its earnings and growth?
The Clorox Company trades at a P/E ratio of 18.86, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 20.00 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 3.51 indicates a premium valuation even accounting for growth.
What is CLX's risk profile compared to the market?
With a beta of 0.52, The Clorox Company is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 47.40 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

11.40%

Operating Margin

21.00%

EBITDA

$1.40B

Return on Equity

169.20%

Return on Assets

13.10%

Revenue Growth (YoY)

4.50%

Earnings Growth (YoY)

55.50%

How profitable and efficient is CLX's business model?
The Clorox Company achieves a profit margin of 11.40%, meaning it retains $11.40 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 21.00% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 169.20% and ROA at 13.10%, the company generates strong returns on invested capital.
What are CLX's recent growth trends?
The Clorox Company's revenue grew by 4.50% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 55.50% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against HOUSEHOLD & PERSONAL PRODUCTS industry averages for proper context.

Dividend Information

Dividend Per Share

$4.90

Dividend Yield

3.94%

Ex-Dividend Date

Oct 22, 2025

Dividend Date

Nov 6, 2025

What dividend income can investors expect from CLX?
The Clorox Company offers a dividend yield of 3.94%, paying $4.90 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 22, 2025.
How reliable is CLX's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - The Clorox Company pays $4.90 per share in dividends against earnings of $6.52 per share, resulting in a payout ratio of 75.15%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Nov 6, 2025.

Company Size & Market

Market Cap

$15.0B

Revenue (TTM)

$7.10B

Revenue/Share (TTM)

$57.51

Shares Outstanding

122.31M

Book Value/Share

$2.62

Asset Type

Common Stock

What is CLX's market capitalization and position?
The Clorox Company has a market capitalization of $15.0B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 122.31M shares outstanding, the company's ownership is relatively concentrated. As a participant in the HOUSEHOLD & PERSONAL PRODUCTS industry, it competes with other firms in this sector.
How does CLX's price compare to its book value?
The Clorox Company's book value per share is $2.62, while the current stock price is $112.45, resulting in a price-to-book (P/B) ratio of 42.99. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$133.29

18.53% upside potential

Analyst Recommendations

Strong Buy

1

Buy

1

Hold

13

Sell

2

Strong Sell

2

How reliable are analyst predictions for CLX?
19 analysts cover CLX with 11% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $133.29 implies 18.5% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on CLX?
Current analyst recommendations:1 Strong Buy, 1 Buy, 13 Hold, 2 Sell, 2 Strong Sell. The bearish sentiment indicates concerns, but contrarian investors sometimes find opportunities when Wall Street is negative.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 1, 2025, 06:11 AM

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The Clorox Company (CLX) Stock Analysis 2025: Complete Investment Guide

The Household Products Giant Using AI to Accelerate Innovation

Consumer packaged goods companies rarely lead innovation conversations. When Linda Rendle highlighted how Clorox cut product development timelines in half through AI and data analytics, she signaled a transformation beyond typical CPG incremental improvements. The IGNITE strategy—Generate fuel, Innovate for superior experiences, and evolve the portfolio—enabled Fresh Step Health Monitoring Litter that detects urinary issues in cats, Clorox Scentiva Bleach combining cleaning with premium fragrances, and Hidden Valley Ranch collaborations with Hot Pockets and Taco Bell that expand beyond traditional salad dressings. These aren't line extensions; they're platform launches targeting new consumer needs identified through AI-driven insights. Despite Q2 FY2025 sales declining 15% to $1.69 billion (due to cyberattack recovery comparisons and portfolio pruning), Rendle delivered 105% EPS growth, the ninth consecutive quarter of gross margin expansion, and raised full-year guidance—demonstrating how operational excellence offsets top-line pressures.

Business Model & Competitive Moat

Clorox generates revenue across four segments: Health and Wellness (bleach, disinfectants, vitamins), Household (Glad bags, cleaning products, litter), Lifestyle (Burt's Bees, natural personal care), and International. The competitive moat rests on brand equity built over decades—Clorox bleach dominates disinfectant share, Glad leads trash bags, Fresh Step ranks among top litter brands, and Hidden Valley owns ranch dressing. What differentiates Clorox from P&G or Unilever is category focus and sustainability leadership: ranked #1 on Barron's Most Sustainable Companies list three consecutive years.

The IGNITE strategy enhances the moat through faster innovation cycles. By halving concept-to-launch timelines via AI, Clorox can respond to emerging consumer trends before competitors. The Glad joint venture termination with P&G (January 31, 2026) removes complexity and gives Clorox full control over product innovation and pricing. The planned acquisition of P&G's 20% interest simplifies decision-making while retaining all Glad revenue. Nine consecutive quarters of gross margin expansion demonstrate pricing power and operational efficiency that sustain profitability even when volumes decline.

Financial Performance

  • •Q2 FY2025: Net sales $1.69B (-15% YoY due to cyberattack recovery comps and divestitures), EPS $1.54 (+105%), Adjusted EPS $1.55 (-28%)
  • •Gross Margin Expansion: 9 consecutive quarters of improvement, +200 basis points expected for full FY2025
  • •FY2025 Guidance: Net sales -1% to +2%, organic sales +4% to +7%, EPS $5.52-$5.92, Adjusted EPS $6.95-$7.35
  • •Dividend: $4.96 annual ($1.24 quarterly), 4.26% yield, 49 consecutive years of increases, 74.32% payout ratio
  • •Margin Recovery: On track to fully restore margins to pre-pandemic levels in FY2025
  • •ERP Implementation: Digital transformation through new U.S. ERP system supports long-term efficiency gains

The 105% EPS surge despite 15% sales decline illustrates cost structure improvements and elimination of prior-year cyberattack costs. Organic sales growth of 4-7% demonstrates underlying brand strength.

Growth Catalysts

  • •AI-Driven Innovation: Halved development timelines enable rapid multi-year platform launches across categories
  • •Glad Full Ownership: P&G joint venture termination (Jan 2026) provides full control for innovation and pricing flexibility
  • •Product Platform Expansion: Fresh Step Health Monitoring, Clorox Scentiva, Hidden Valley collaborations open new revenue streams
  • •Margin Restoration: Path to pre-pandemic margins creates operating leverage as sales recover
  • •Digital Transformation: New ERP system modernizes capabilities for growth acceleration and efficiency
  • •Sustainability Premium: #1 sustainability ranking drives brand preference among ESG-conscious consumers
  • •International Growth: Expansion opportunities in emerging markets with established brand platforms

Risks & Challenges

  • •Volume Pressures: Q2 15% sales decline (even excluding comps) shows consumer trade-down to private label
  • •Private Label Competition: Retailer brands gaining share in categories like bleach and trash bags on price
  • •Raw Material Costs: Resin, pulp, and chemical input inflation requires continuous productivity improvements
  • •High Payout Ratio: 74.32% payout ratio limits dividend growth unless earnings accelerate meaningfully
  • •Portfolio Concentration: Dependence on mature categories (bleach, bags, litter) limits growth potential
  • •Retail Channel Shift: E-commerce growth favors Amazon-native brands over traditional CPG distribution
  • •Execution Risk: ERP implementation and Glad transition could disrupt operations if poorly managed

Competitive Landscape

In household cleaning, Clorox competes with P&G (Mr. Clean, Tide), Reckitt (Lysol, Finish), SC Johnson (Windex, Pledge), and retailer private labels. Clorox bleach leads disinfectant market share, but Lysol dominates broader surface cleaning. In trash bags, Glad faces Reynolds (Hefty) and private label pressure. Fresh Step competes with Nestlé Purina (Tidy Cats), Church & Dwight (Arm & Hammer), and premium brands like Dr. Elsey's. Burt's Bees battles L'Oréal, Unilever, and specialty natural brands for natural personal care share.

What differentiates Clorox is category leadership depth and sustainability credentials. While P&G has broader scale, Clorox focuses resources on categories where it leads or can lead (bleach, bags, litter, natural personal care). The termination of the Glad joint venture eliminates P&G partnership complexity, enabling faster innovation. Linda Rendle's AI-driven innovation approach aims to widen competitive gaps by launching new platforms before competitors identify emerging needs. The #1 sustainability ranking provides differentiation that private label cannot match among values-driven consumers.

Who Is This Stock Suitable For?

Perfect For

  • ✓Dividend income investors seeking 4.26% yield with 49-year growth track record
  • ✓Defensive portfolio allocations prioritizing consumer staples stability
  • ✓ESG-focused investors valuing #1 sustainability ranking three consecutive years
  • ✓Long-term holders (5-10+ years) comfortable with low-single-digit growth
  • ✓Those seeking household products exposure with operational transformation upside

Less Suitable For

  • ✗Growth investors requiring double-digit revenue/earnings expansion
  • ✗Traders seeking volatility/catalysts (consumer staples lack dramatic moves)
  • ✗Those bearish on dividend sustainability given 74.32% payout ratio
  • ✗Investors concerned about private label competitive pressure in mature categories

Investment Thesis

Clorox presents a classic dividend aristocrat profile enhanced by AI-driven innovation transformation. The bull case rests on Linda Rendle successfully executing IGNITE strategy—using AI to halve innovation timelines, launching multi-year product platforms that drive premium pricing, and restoring margins to pre-pandemic levels while maintaining dividend growth. The Glad joint venture termination with P&G simplifies operations and provides full control for faster innovation. With 9 consecutive quarters of gross margin expansion and organic sales growth of 4-7%, operational fundamentals are improving. The 4.26% dividend yield backed by 49 years of consecutive increases provides income reliability, while #1 sustainability rankings differentiate brands in an increasingly ESG-conscious market.

The bear case questions whether AI innovation can offset structural headwinds: private label pressure in commoditized categories like bleach and trash bags, consumer trade-down during inflation, and mature category growth limitations. The 74.32% payout ratio constrains dividend growth unless earnings accelerate materially beyond current 4-7% organic guidance. Q2's 15% sales decline (even accounting for comps) suggests volume challenges that operational excellence alone may not overcome. For conservative income investors seeking defensive consumer staples exposure with 49-year dividend track records, Clorox justifies allocation. The 4.26% yield is attractive in current markets, and operational transformation provides modest capital appreciation optionality. Size as a core defensive holding expecting mid-single-digit total returns (dividend + modest appreciation).

Conclusion

Buy for dividend income investors seeking 4.26% yield with 49-year growth track record. The operational transformation through AI innovation provides modest capital appreciation potential beyond income. Suitable for defensive core holdings with 5+ year horizons. The 74.32% payout ratio is elevated but supported by margin restoration. Expect mid-to-high single-digit total returns (4.26% yield + 2-4% appreciation).
Bull Case
$155-165 (20-28% upside if AI innovation drives 6-8% organic growth and margins expand)
Base Case
$135-145 (5-13% upside, matching dividend yield plus modest appreciation)
Bear Case
$110-120 (10-15% downside if private label pressure and volume declines persist)

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