CHD  Church & Dwight Company Inc.

Exchange

NYSE

Sector

Basic Industries

Industry

Package Goods/Cosmetics

Market Cap.

11.52B

Vuru Grade

68.15/100

Current Price

$46.18
-1.10 (-2.33%)

Growth Price

$29.18
Overvalued by 36.82%

Stability Price

$12.57
Overvalued by 72.78%

Company Metrics

  • P/E 27.31
  • P/S 3.33
  • P/B 6.38
  • EPS 1.69
  • Cash ROIC 16.21%
  • Cash Ratio 0.19
  • Dividend 0.76 / 1.58%
  • Avg. Vol. 1.40M
  • Shares 249.46M
  • Market Cap. 11.52B

Company Description

Church & Dwight Co., Inc., together with its subsidiaries, develops, manufactures, and markets a range of household, personal care, and specialty products under various brand names in the United States and internationally. The company operates in three segments: Consumer Domestic, Consumer International, and Specialty Products. The Consumer Domestic segment offers household products for deodorizin... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Church & Dwight Enters Oversold Territory
Nasdaq - 16 hours ago
But making Church & Dwight Co Inc an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of CHD entered into oversold territory, changing hands as low as $45.78 per share.
BlueCrest Capital Management Ltd Purchases New Stake in Church & Dwight ... - Dispatch Tribunal
These stock's might change the kismet of Investors: Church & Dwight Co., Inc ... - StockNewsJournal
Should You Buy Church & Dwight Co., Inc. (CHD) or Philip Morris International ...
Economic News - 23 hours ago
Church & Dwight Co., Inc. (NYSE:CHD) and Philip Morris International Inc. (NYSE:PM) are both Consumer Goods companies that recently hit new highs.
Church & Dwight Co., Inc. (CHD) vs. Ecolab Inc. (ECL): Is One a Better ...
Economic News - Oct 13, 2017
Church & Dwight Co., Inc. (NYSE:CHD) and Ecolab Inc. (NYSE:ECL) are both Consumer Goods companies that recently hit new low.
Church & Dwight Company, Inc. (NYSE:CHD) Downgraded by Zacks Investment Research - StockNewsTimes
Church & Dwight Company, Inc. (NYSE:CHD) Shares Sold by Sii Investments Inc. WI - The Ledger Gazette
Church & Dwight Company Inc Risk Points versus Consumer Discretionary
CML News - Oct 12, 2017
This is a scatter plot analysis of the critical risk points from the option market for Church & Dwight Company Inc (NYSE:CHD) compared to its own past and the Consumer Discretionary ETF.
A Look Into Insider Activity With Church & Dwight Co., Inc. (CHD)
Economic News - Oct 9, 2017
Church & Dwight Co., Inc. (NYSE:CHD) has seen its stock price gain , or , so far in 2017. In the past 3-month period alone, shares of CHD have appreciated - or .
Church & Dwight Company Inc. (CHD) Moves Higher on Volume Spike for October 04 - Equities.com
Taking a Look at the Data Behind Church & Dwight Co., Inc. (CHD) - StockNewsJournal
Investors Are Circling Church & Dwight Co., Inc. (NYSE:CHD), What Do the ...
Financial Newsweek - 13 hours ago
The Value Composite Two of Church & Dwight Co., Inc. (NYSE:CHD) is 47. The VC2 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield.
Is the Hold Strategy Apt for Church & Dwight (CHD) Stock?
Nasdaq - Sep 22, 2017
Church & Dwight Co., Inc. CHD , a leading consumer products giant, has been in troubled waters of late. The company posted mixed results in the second quarter of 2017, wherein while earnings beat the Zacks Consensus Estimate, revenues missed the ...
Is This Just A Random Move? – Church & Dwight Co., Inc. (CHD), Devon Energy ...
USA Commerce Daily - Oct 18, 2017
Church & Dwight Co., Inc. (NYSE:CHD) shares were trading lower by -0.33 percent ($-0.16) at $47.7 a piece in Tuesday's session.
A Head-to-head Comparison of Church & Dwight Co., Inc. (CHD) and QUALCOMM ...
Economic News - Sep 26, 2017
Church & Dwight Co., Inc. (NYSE:CHD) and QUALCOMM Incorporated (NYSE:QCOM) are both Consumer Goods companies that recently hit new highs.
Technical Watch – Church & Dwight Co., Inc. (CHD) moves -11.18% off from One ... - Voice Of Analysts
Should Investors Take A Bite Out Of Church & Dwight Co., Inc. (NYSE:CHD)? - AllStockNews
What Is Church & Dwight Co Inc's (CHD) Share Price Doing?
Simply Wall St - Oct 1, 2017
Let's talk about the popular Church & Dwight Co Inc (NYSE:CHD). The company's shares saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $53.8 and falling to the lows of $48.04.
Macquarie Begins Coverage on Church & Dwight Company, Inc. (CHD) - The Ledger Gazette
Inspecting more closely technicals of Church & Dwight Co., Inc. (CHD) - USA Commerce Daily
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CHD to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CHD's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$46.18 Current Price

$29.18 Growth Price (DCF)

Overvalued by 36.82%


Growth Rate Assumed by Market: 21.95%


Future Free Cash Flow Growth Rate: 7.7%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.57 Stability Price (EPV)

Overvalued by 72.78%


Discount Rate: 15.0%

$25.20 Book Price

Overvalued by 45.43%


Excellent Cash Return on Invested Capital over the past 5 years

CHD has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

CHD has created $16.21 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 449.10M 432.50M 469.80M 544.30M 605.50M
divided by
Invested Capital 3.03B 3.11B 3.05B 3.05B 3.16B
Cash ROIC 14.82% 13.90% 15.39% 17.82% 19.13%

Excellent Return on Equity over the past 5 years

Over the past 5 years, CHD has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

CHD has generated $19.46 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 349.80M 394.40M 413.90M 410.40M 459.00M
divided by
Stockholders' Equity 2.06B 2.30B 2.10B 2.02B 1.98B
Return on Equity 16.97% 17.15% 19.69% 20.28% 23.21%

Excellent Business Performance over the past 10 years

CHD has been able to maintain profitability in good times and bad. This could mean CHD has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CHD has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 199.80M 335.83M 400.38M 364.65M 361.20M 449.10M 432.50M 469.80M 544.30M 605.50M

Weak Balance Sheet

CHD's financial position is not ideal. The key is to check whether CHD is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 249.81M 198.00M 447.14M 189.20M 251.40M 343.00M 496.90M 423.00M 330.00M 187.80M
Current Assets 735.35M 665.12M 928.27M 649.48M 755.20M 933.80M 1.12B 1.03B 906.00M 756.80M
Total Assets 2.53B 2.80B 3.12B 2.95B 3.12B 4.10B 4.26B 4.38B 4.26B 4.35B
Current Liabilities 457.79M 387.12M 567.03M 447.09M 383.60M 725.60M 651.20M 905.30M 872.70M 1.00B
Total Liabilities 1.45B 1.47B 1.52B 1.07B 1.08B 2.04B 1.96B 2.28B 2.23B 2.38B
Stockholder' Equity 1.08B 1.33B 1.60B 1.87B 2.04B 2.06B 2.30B 2.10B 2.02B 1.98B
Current Ratio 1.61 1.72 1.64 1.45 1.97 1.29 1.71 1.14 1.04 0.76
TL-to-TA 0.57 0.52 0.49 0.36 0.35 0.50 0.46 0.52 0.52 0.55

Consistent Reinvestment of Profits over the past 10 years

CHD has consistently retained profits. This may put CHD in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, CHD can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 891.87M 1.06B 1.28B 1.50B 1.71B 1.93B 2.17B 2.41B 2.65B 2.93B
Retained Earnings Growth - 19.29% 19.85% 17.78% 14.13% 12.56% 12.40% 11.36% 9.74% 10.42%

Potential Competitive Advantage over the past 10 years

CHD potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$10.91 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 169.03M 195.17M 243.53M 270.72M 309.60M 349.80M 394.40M 413.90M 410.40M 459.00M
divided by
Revenue 2.22B 2.42B 2.52B 2.59B 2.75B 2.92B 3.19B 3.30B 3.39B 3.49B
Net Profit Margin 7.61% 8.06% 9.66% 10.46% 11.26% 11.97% 12.35% 12.55% 12.09% 13.14%

Varying Pricing Power over the past 10 years

CHD has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$49.09 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 867.90M 971.72M 1.10B 1.16B 2.75B 1.29B 1.44B 1.45B 1.51B 1.59B
divided by
Revenue 2.22B 2.42B 2.52B 2.59B 2.75B 2.92B 3.19B 3.30B 3.39B 3.49B
Gross Margin 39.08% 40.11% 43.67% 44.71% 100.00% 44.20% 45.02% 44.06% 44.53% 45.54%

Low Capital Intensity over the past 10 years

CHD has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that CHD may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

15.89% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 48.88M 340,000.00 571,000.00 63.83M 76.60M 74.50M 67.10M 70.50M 61.80M 49.80M
divided by
Net Income 169.03M 195.17M 243.53M 270.72M 309.60M 349.80M 394.40M 413.90M 410.40M 459.00M
Capital Expenditure Ratio 28.92% 0.17% 0.23% 23.58% 24.74% 21.30% 17.01% 17.03% 15.06% 10.85%

Very Strong Dividend History over the past 10 years

CHD has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests CHD is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 19.75M 23.11M 32.34M 44.04M 97.40M 134.50M 155.20M 167.50M 175.30M 183.00M
divided by
Shares Outstanding 70.31M 71.12M 71.48M 72.20M 145.80M 142.70M 141.20M 137.50M 133.60M 262.10M
Dividend Paid Per Share 0.28 0.33 0.45 0.61 0.67 0.94 1.10 1.22 1.31 0.70
Price at Year End 26.13 26.38 29.66 34.22 45.53 53.42 66.64 79.64 86.13 44.19
Dividend Yield 1.07% 1.23% 1.53% 1.78% 1.47% 1.76% 1.65% 1.53% 1.52% 1.58%

History of Stock Buybacks over the past 10 years

CHD has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 70.31M 71.12M 71.48M 72.20M 145.80M 142.70M 141.20M 137.50M 133.60M 262.10M
Stock Bought Back - -1.13% -0.51% -1.00% -50.48% 2.17% 1.06% 2.69% 2.92% -49.03%
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