Church & Dwight Co., Inc.
Church & Dwight Co., Inc. Fundamental Analysis
Church & Dwight Co., Inc. (CHD) shows moderate financial fundamentals with a PE ratio of 34.18, profit margin of 11.88%, and ROE of 17.16%. The company generates $6.2B in annual revenue with moderate year-over-year growth of 4.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CHD's fundamental strength across five key dimensions:
Efficiency Score
WeakCHD struggles to generate sufficient returns from assets.
Valuation Score
ModerateCHD shows balanced valuation metrics.
Growth Score
WeakCHD faces weak or negative growth trends.
Financial Health Score
ExcellentCHD maintains a strong and stable balance sheet.
Profitability Score
ModerateCHD maintains healthy but balanced margins.
Key Financial Metrics
Is CHD Expensive or Cheap?
P/E Ratio
CHD trades at 34.18 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CHD's PEG of -6.43 indicates potential undervaluation.
Price to Book
The market values Church & Dwight Co., Inc. at 6.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.11 times EBITDA. This signals the market has high growth expectations.
How Well Does CHD Make Money?
Net Profit Margin
For every $100 in sales, Church & Dwight Co., Inc. keeps $11.88 as profit after all expenses.
Operating Margin
Core operations generate 17.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.16 in profit for every $100 of shareholder equity.
ROA
Church & Dwight Co., Inc. generates $8.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Church & Dwight Co., Inc. produces operating cash flow of $1.22B, showing steady but balanced cash generation.
Free Cash Flow
Church & Dwight Co., Inc. generates strong free cash flow of $1.10B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.58 in free cash annually.
FCF Yield
CHD converts 4.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How CHD Stacks Against Its Sector Peers
| Metric | CHD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.18 | 23.01 | Worse (Expensive) |
| ROE | 17.16% | 1228.00% | Weak |
| Net Margin | 11.88% | -4010.00% (disorted) | Strong |
| Debt/Equity | 0.55 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.07 | 2.35 | Neutral |
| ROA | 8.27% | -157546.00% (disorted) | Weak |
CHD outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Church & Dwight Co., Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.75%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-5.24%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
33.36%
Industry Style: Defensive, Dividend, Low Volatility
High Growth