Church & Dwight (CHD) AI Stock Analysis

• Market Cap: $20.19B
• Dividend Yield: 1.4%
• Average Volume (3M): 2.32M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.07
• Revenue Growth: 1.45%
• EPS Growth: 42.04%
• Country: US
• Employees: 5,750
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.81
• Shares Outstanding: 240,130,070
• 10 Day Avg. Volume: 2,321,198
• 30 Day Avg. Volume: 2,319,706
• PEG Ratio: -1.95
• Price to Book (P/B): 5.93
• Price to Sales (P/S): 4.23
• P/FCF Ratio: 26.48
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 8.58
• Enterprise Value/Ebitda: 16.89
• 1Y Price Target: $98.86
• Price Target Upside: 17.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 3.5
• Revenue Forecast (FY): $6.20B

• Rating: 72 Outperform
• Price Target: $97.00 ▲(15.34% Upside)

Church & Dwight's overall stock score is driven by strong financial performance and positive earnings call sentiment, indicating robust growth prospects. However, the stock's technical indicators suggest a bearish trend, and its valuation appears high relative to peers, which could limit upside potential. The company's strategic initiatives and brand strength are key positives, but challenges in certain segments and competitive pressures remain.

Positive Factors

Strong Revenue Growth

Exceeding sales growth expectations indicates robust demand and effective sales strategies, supporting long-term revenue expansion.

Successful Acquisition

The successful integration and performance of TOUCHLAND enhance product offerings and contribute to sustained growth.

Improved Cash Flow

Improved cash flow strengthens financial flexibility, enabling strategic investments and debt servicing, supporting long-term stability.

Negative Factors

Challenges in Vitamin Business

Declines in the vitamin segment may affect overall growth and require strategic adjustments to mitigate long-term impact.

Increased Promotional Intensity

Increased promotional activity can pressure margins and affect profitability, posing a challenge to maintaining competitive advantage.

Negative Price/Mix Impact

Adverse price/mix effects can impact revenue and profitability, necessitating strategic pricing adjustments to sustain growth.

Church & Dwight Business Overview & Revenue Model

Company Description

Church & Dwight Co., Inc. develops, manufactures, and markets household, personal care, and specialty products. It operates through three segments: Consumer Domestic, Consumer International, and Specialty Products Division. The company offers cat litters, carpet deodorizers, laundry detergents, and baking soda, as well as other baking soda based products under the ARM & HAMMER brand; condoms, lubricants, and vibrators under the TROJAN brand; stain removers, cleaning solutions, laundry detergents, and bleach alternatives under the OXICLEAN brand; battery-operated and manual toothbrushes under the SPINBRUSH brand; home pregnancy and ovulation test kits under the FIRST RESPONSE brand; depilatories under the NAIR brand; oral analgesics under the ORAJEL brand; laundry detergents under the XTRA brand; gummy dietary supplements under the L'IL CRITTERS and VITAFUSION brands; dry shampoos under the BATISTE brand; water flossers and replacement showerheads under the WATERPIK brand; FLAWLESS products; cold shortening and relief products under the ZICAM brand; and oral care products under the THERABREATH brand. Its specialty products include animal productivity products, such as MEGALAC rumen bypass fat, a supplement that enables cows to maintain energy levels during the period of high milk production; BIO-CHLOR and FERMENTEN, which are used to reduce health issues associated with calving, as well as provides needed protein; and CELMANAX refined functional carbohydrate, a yeast-based prebiotic. The company offers sodium bicarbonate; and cleaning and deodorizing products. It sells its consumer products through supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and other discount stores, pet and other specialty stores, and websites and other e-commerce channels; and specialty products to industrial customers and livestock producers through distributors. The company was founded in 1846 and is headquartered in Ewing, New Jersey.

How the Company Makes Money

Church & Dwight generates revenue through the sale of consumer products across several key categories, including laundry and cleaning products, personal care items, and health care products. The company employs a multi-channel distribution strategy that includes retail, e-commerce, and direct-to-consumer sales. Key revenue streams come from established brands like Arm & Hammer and Trojan, which are leaders in their respective markets. Additionally, Church & Dwight invests in marketing and product innovation to drive sales growth. Strategic partnerships with retailers and distributors also enhance their market presence and accessibility, contributing significantly to revenue. Seasonal promotions, product launches, and expanding international markets further bolster the company's financial performance.

Church & Dwight Financial Statement Overview

Summary

Church & Dwight exhibits a strong financial position with consistent revenue growth, solid profitability margins, and effective cash flow management. The balance sheet reflects moderate leverage, supporting financial stability. While there is room for improvement in net profit margins, the company's financial health is robust, positioning it well for future growth.

Income Statement

Church & Dwight shows a solid financial performance with a consistent increase in revenue, as evidenced by a TTM revenue growth rate of 1.24%. The gross profit margin remains strong at 44.44%, indicating efficient production and cost management. However, the net profit margin of 12.74% suggests room for improvement in controlling non-operating expenses. The EBIT and EBITDA margins are stable, reflecting effective operational management.

Balance Sheet

The company's balance sheet is relatively healthy with a debt-to-equity ratio of 0.52, indicating moderate leverage. The return on equity is robust at 23.52%, showcasing effective use of shareholder funds to generate profits. However, the equity ratio of 46.18% suggests a balanced but slightly lower reliance on equity financing compared to assets.

Cash Flow

Church & Dwight demonstrates strong cash flow management with a free cash flow growth rate of 9.88% in the TTM period. The operating cash flow to net income ratio is 1.46, indicating efficient conversion of net income into cash. The free cash flow to net income ratio of 0.89 suggests a healthy cash generation relative to net income, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.14B	6.11B	5.87B	5.38B	5.19B	4.90B
Gross Profit	2.73B	2.79B	2.59B	2.25B	2.26B	2.21B
EBITDA	1.39B	1.09B	1.30B	831.90M	1.31B	1.22B
Net Income	782.50M	585.30M	755.60M	413.90M	827.50M	785.90M
Balance Sheet
Total Assets	9.14B	8.88B	8.57B	8.35B	8.00B	7.41B
Cash, Cash Equivalents and Short-Term Investments	305.30M	964.10M	344.50M	270.30M	240.60M	183.10M
Total Debt	2.37B	2.41B	2.61B	2.85B	2.73B	2.36B
Total Liabilities	4.92B	4.52B	4.71B	4.86B	4.76B	4.39B
Stockholders Equity	4.22B	4.36B	3.86B	3.49B	3.23B	3.02B
Cash Flow
Free Cash Flow	1.02B	976.40M	807.10M	706.40M	875.00M	891.40M
Operating Cash Flow	1.14B	1.16B	1.03B	885.20M	993.80M	990.30M
Investing Cash Flow	-770.50M	-183.30M	-234.30M	-728.60M	-682.00M	-608.10M
Financing Cash Flow	-819.00M	-343.40M	-725.60M	-120.90M	-252.10M	-360.10M

Church & Dwight Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 84.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHD, the sentiment is Negative. The current price of 84.1 is below the 20-day moving average (MA) of 85.48, below the 50-day MA of 87.55, and below the 200-day MA of 96.30, indicating a bearish trend. The MACD of -0.78 indicates Negative momentum. The RSI at 42.17 is Neutral, neither overbought nor oversold. The STOCH value of 15.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHD.

Church & Dwight Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	74 Outperform	$345.07B	21.56	31.90%	2.83%	1.23%	17.97%
UL	73 Outperform	$148.56B	24.90	28.36%	3.44%	-0.30%	-14.60%
CHD	72 Outperform	$20.19B	26.48	18.59%	1.40%	1.45%	42.04%
CL	63 Neutral	$62.91B	21.87	450.35%	2.64%	-0.05%	2.49%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KMB	62 Neutral	$34.52B	17.62	136.87%	4.81%	-10.04%	-23.41%
CLX	53 Neutral	$12.65B	16.25	4163.16%	4.75%	-9.35%	123.06%