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Church & Dwight Company (CHD)
NYSE:CHD
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Church & Dwight
(NYSE:CHD)74Outperform
Positive Factors
Brand Performance
Five out of seven Power Brands grew market share and new products represented half of 2024's organic growth, showing strong brand performance and successful innovation.
Innovation
CHD is leveraging its durable Arm & Hammer platform and product development muscle, with a significant portion of sales driven by innovation.
Negative Factors
Guidance
The 2025 outlook is softer than expected, with a cautious view on the US consumer impacting projected growth.
Church & Dwight (CHD) vs. S&P 500 (SPY)
Market Cap
$27.23B
Dividend Yield1.02%
Average Volume (3M)1.60M
Price to Earnings (P/E)46.7
Beta (1Y)0.13
Revenue Growth4.08%
EPS Growth-22.34%
CountryUS
Employees5,750
SectorConsumer Defensive
Sector Strength73
IndustryConsumer Products - Household & Personal
Share Statistics
EPS (TTM)2.37
Shares Outstanding245,969,880
10 Day Avg. Volume1,706,285
30 Day Avg. Volume1,601,122
Financial Highlights & Ratios
PEG Ratio1.80
Price to Book (P/B)N/A
Price to Sales (P/S)4.51
Price to Cash Flow (P/CF)23.60
P/FCF Ratio22.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$112.07Price Target Upside1.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Church & Dwight Business Overview & Revenue Model
Company DescriptionChurch & Dwight Co., Inc. engages in the development, manufacture, and market of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, and Specialty Products. The Consumer Domestic segment offers household products, such as laundry detergents, fabric softener sheets, cat litter, and household cleaning products; and personal care products including antiperspirants, oral care products, depilatories, reproductive health products, oral analgesics, nasal saline moisturizers, and dietary supplements. The Consumer International segment offers personal care products, household and over-the counter products in Canada, France, Australia, China, the United Kingdom, Mexico, and Brazil. The Specialty Products segment consists of sales to businesses which participated in different product areas, namely animal productivity, specialty chemicals, and specialty cleaners. The company was founded by Dwight John and Austin Church in 1846 and is headquartered in Ewing, NJ.
How the Company Makes MoneyChurch & Dwight generates revenue primarily through the manufacture and sale of consumer and specialty products. The consumer products segment is the largest contributor to its revenue, encompassing brands like Arm & Hammer, OxiClean, and Trojan, among others, which are sold through various retail channels, including supermarkets, mass merchandisers, and online platforms. The specialty products division contributes to revenue by supplying performance products to industrial markets and animal nutrition products to the agricultural sector. Key revenue streams include sales from household cleaning products, personal care items, and specialty product solutions. Strategic acquisitions and brand extensions also play a significant role in enhancing their product portfolio and driving growth.
Church & Dwight Financial Statement Overview
Summary
Church & Dwight demonstrates strong financial health with consistent revenue growth and efficient cash flow management. The company has a solid balance sheet with moderate leverage, though rising operational costs have slightly impacted profitability margins. Overall, the company is well-positioned for continued financial stability and growth.Income Statement
Church & Dwight shows a solid gross profit margin of 45.7% and a net profit margin of 9.6% for the latest year, indicating strong operational efficiency. However, there has been a decline in EBIT margin from 18% in the previous year to 13.2%, suggesting increased operational costs. Revenue growth is healthy at 4.1%, demonstrating steady market expansion.80
Positive
Balance Sheet
The company's debt-to-equity ratio is 0.51, indicating a moderate level of leverage. Return on equity is 13.4%, showing effective use of equity financing to generate profits. With an equity ratio of 49.1%, Church & Dwight maintains a balanced financial structure, though there's room for improvement in reducing liabilities.75
Positive
Cash Flow
Operating cash flow to net income ratio is robust at 1.97, suggesting strong cash generation capability. Free cash flow has grown by 21%, reflecting efficient capital management. The company maintains a high free cash flow to net income ratio of 1.67, indicative of solid cash reserves for future growth.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.11B | 5.87B | 5.38B | 5.19B | 4.90B | Gross Profit |
| 2.79B | 2.59B | 2.25B | 2.26B | 2.21B | EBIT |
| 807.10M | 1.06B | 597.80M | 1.08B | 1.03B | EBITDA |
| 1.09B | 1.30B | 826.30M | 1.30B | 1.22B | Net Income Common Stockholders |
| 585.30M | 755.60M | 413.90M | 827.50M | 785.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 964.10M | 344.50M | 270.30M | 240.60M | 183.10M | Total Assets |
| 8.88B | 8.57B | 8.35B | 8.00B | 7.41B | Total Debt |
| 2.20B | 2.61B | 2.67B | 2.56B | 2.16B | Net Debt |
| 1.24B | 2.26B | 2.40B | 2.32B | 1.98B | Total Liabilities |
| 4.52B | 4.71B | 4.86B | 4.76B | 4.39B | Stockholders Equity |
| 4.36B | 3.86B | 3.49B | 3.23B | 3.02B |
| Cash Flow | Free Cash Flow | |||
| 976.40M | 807.10M | 706.40M | 875.00M | 891.40M | Operating Cash Flow |
| 1.16B | 1.03B | 885.20M | 993.80M | 990.30M | Investing Cash Flow |
| -183.30M | -234.30M | -728.60M | -682.00M | -608.10M | Financing Cash Flow |
| -343.40M | -725.60M | -120.90M | -252.10M | -360.10M |
Church & Dwight Technical Analysis
Positive
110.66
Price Trends
105.80
Positive
105.59
Positive
104.34
Positive
Market Momentum
1.39
Negative
60.62
Neutral
87.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHD, the sentiment is Positive. The current price of 110.66 is above the 20-day moving average (MA) of 106.86, above the 50-day MA of 105.80, and above the 200-day MA of 104.34, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 87.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHD.
Church & Dwight Risk Analysis
Church & Dwight disclosed 35 risk factors in its most recent earnings report. Church & Dwight reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Church & Dwight Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $406.08B | 27.59 | 30.25% | 2.32% | 0.49% | 5.02% | |
74 Outperform | $27.23B | 46.70 | 13.42% | 1.02% | 4.08% | -22.34% | |
74 Outperform | $73.90B | 25.95 | 1362.74% | 2.15% | 3.30% | 26.83% | |
71 Outperform | $46.81B | 18.69 | 302.98% | 3.40% | -1.83% | 45.13% | |
68 Neutral | $46.19B | 24.51 | 19.45% | 3.43% | -0.16% | -26.81% | |
63 Neutral | $20.85B | 13.27 | -10.88% | 7.48% | 1.13% | 11.50% | |
60 Neutral | $2.14B | 37.46 | 37.60% | 3.99% | -0.31% | -37.69% |
* Consumer Defensive Sector Average
Performance Comparison
CHD
Church & Dwight
110.66
9.33
9.21%
CL
Colgate-Palmolive
91.75
6.43
7.54%
ENR
Energizer Holdings
29.78
2.98
11.12%
KMB
Kimberly Clark
141.63
21.22
17.62%
PG
Procter & Gamble
174.61
18.88
12.12%
RBGLY
Reckitt Benckiser Group
13.34
1.10
8.99%
Church & Dwight Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: 3.59% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The call highlighted several strong areas of performance, including significant sales and market share growth, particularly in the U.S. and international markets, as well as successful product innovations. However, challenges remain, notably in the gummy vitamins business and increased competition in the litter market. The sentiment reflects a generally positive outlook with some caution in specific areas.Highlights
Strong Sales Growth
Reported sales growth was 3.8%, exceeding the outlook of 2.5%. Organic sales grew 4.3%, surpassing the 3% outlook with significant volume contribution.
Gross Margin and EPS Performance
Adjusted gross margin expanded by 60 basis points. Adjusted EPS was $0.79, beating the $0.67 outlook.
U.S. Business Success
The U.S. business reported 3.3% organic sales growth, with five of seven power brands gaining market share.
Innovation in Laundry Detergents
ARM & HAMMER Unit Dose consumption grew 16.5%, and new products like Deep Clean and POWER SHEETS show strong consumer interest.
International and Specialty Products Growth
International business delivered 8.1% organic growth, and Specialty Products achieved 7.5% organic growth.
TheraBreath and Hero Brand Performance
THERABREATH grew share in the mouthwash category, and HERO led in the acne patch category with notable market share gains.
Lowlights
Gummy Vitamins Decline
The gummy vitamin category was flat, but the company's consumption was down 10%, leading to a $357 million write-down.
Litter Market Challenges
ARM & HAMMER litter consumption declined 1.5% due to changes in competitor stock situations.
Reported Loss Due to Impairment
A non-cash asset impairment in the vitamin business resulted in a reported EPS loss of $0.31.
Increased Promotional Environment in Litter
Promotions in the litter category increased significantly, primarily driven by a major competitor.
Company Guidance
During the Church & Dwight Q3 2024 earnings call, guidance was provided with a focus on several key metrics. The company reported a 3.8% increase in sales, surpassing their outlook of 2.5%, with organic sales growth at 4.3%. Adjusted gross margin expanded by 60 basis points, and adjusted EPS was $0.79, exceeding the $0.67 forecast. The U.S. business witnessed a 3.3% organic sales growth, driven by a 2.6% volume increase. International business also showed robust growth with an 8.1% rise in organic sales. The company highlighted strong performances from several brands, including ARM & HAMMER, which saw significant growth in both liquid laundry detergent and Unit Dose categories. ARM & HAMMER Deep Clean and POWER SHEETS contributed notably to sales growth. However, the gummy vitamins business faced challenges, leading to a $357 million write-down. Despite this, the company remains optimistic about future innovations and the potential for growth, planning to continue investments in marketing, maintaining marketing expenses above 11% of net sales. The overall guidance remains cautious, particularly around U.S. consumer behavior and category growth rates for Q4.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.