Clorox CLX
Clorox is a consumer products company for home and health, with brands like Clorox, Pine-Sol, and Glad, selling through retailers and distribution channels worldwide. Clorox shows a highly leveraged balance sheet (ND/EBITDA 4.79, liquidity 0.66) and a contracting business (earnings -50%), with a 5.97% dividend not covered by the 103% payout. Underlying quality (42% gross margin, 15% ROIC) does not offset balance sheet and dividend cut risk.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Clorox is a consumer products company for home and health, with brands like Clorox, Pine-Sol, and Glad, selling through retailers and distribution channels worldwide. Clorox shows a highly leveraged balance sheet (ND/EBITDA 4.79, liquidity 0.66) and a contracting business (earnings -50%), with a 5.97% dividend not covered by the 103% payout. Underlying quality (42% gross margin, 15% ROIC) does not offset balance sheet and dividend cut risk.
Score by category
| Category | Score |
|---|---|
| Financial health | 2.2 |
| Quality / Moat | 6.0 |
| Valuation | 5.6 |
| Growth | 1.4 |
| Dividend | 4.9 |
| Momentum | 2.5 |
| Risk & Context | 7.8 |
OVERALL SCORE: 4.8/10
Context and risks
The 103% payout and 50% earnings decline make the 5.97% dividend unsustainable without a cut, a risk the market already partially discounts. The high-rate context (10Y at 5.17%) is not the dominant factor for a defensive consumer company with this balance sheet structure.
News considered in the analysis
- 2 Mid-Cap Stocks on Our Watchlist and 1 We Find Risky — Listículo genérico sin información específica nueva sobre Clorox.
- The Clorox Company Stock: Is CLX Underperforming the Consumer Staples Sector? — Comparativa de rendimiento sectorial sin datos concretos que alteren la valoración.
- Will Pricing Sustain Procter & Gamble as Volume Growth Stays Elusive? — Noticia sobre un competidor (P&G), no sobre Clorox; sin impacto directo.
- Clorox vs. Kimberly-Clark: Which Household Staples Dividend Is Safer — Análisis comparativo de dividendos sin hechos nuevos; el payout de Clorox ya es conocido.
- These 6 Massive Dividend Yields May Be Too Good to Be True — Advierte sobre la sostenibilidad de dividendos muy altos; relevante para Clorox dado su payout del 103%.
Verdict: Hold or reduce: balance sheet and dividend cut risk outweigh the current dividend yield appeal.
Main risk: Extreme leverage (Debt/Equity 2221%) combined with a 103% payout and earnings falling 50% makes a dividend cut or equity raise highly likely, which would destroy the income investment thesis.
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