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Church & Dwight Company (CHD)
NYSE:CHD
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Church & Dwight (CHD) AI Stock Analysis

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CHD

Church & Dwight

(NYSE:CHD)

Rating:71Outperform
Price Target:
$107.00
▲(10.05%Upside)
The overall stock score of 71 reflects Church & Dwight's strong financial performance and robust cash flow generation. However, concerns about valuation, technical indicators, and mixed earnings sentiment temper the outlook. Strategic actions to enhance business focus and financial flexibility are positive but need to counterbalance existing challenges.
Positive Factors
Acquisition Strategy
The acquisition of Touchland aligns well with Church & Dwight's criteria as it is the fastest growing brand in hand sanitizer, asset light, and gross margin accretive.
Market Expansion
Touchland's hand sanitizer brand is characterized by low household penetration but is leading and growing, which presents Church & Dwight with significant market expansion opportunities.
Negative Factors
Guidance and Performance
Church & Dwight's business model and categories have not maintained the above-peer growth rate expected, leading to a reduction in 2025 guidance.
Valuation Concerns
Church & Dwight's valuation premium vs peers has compressed after weak Q1 EPS and with a difficult US OSG environment.

Church & Dwight (CHD) vs. SPDR S&P 500 ETF (SPY)

Church & Dwight Business Overview & Revenue Model

Company DescriptionChurch & Dwight Co., Inc. is a leading American manufacturer of household and personal care products. Founded in 1846, the company is renowned for its Arm & Hammer brand, under which it sells baking soda and a variety of related products. Church & Dwight operates in two primary sectors: Consumer Domestic and Consumer International. The company's diverse portfolio includes well-known brands such as OxiClean, Trojan, First Response, Nair, and Waterpik, spanning categories like laundry, household cleaning, personal care, and health & wellness.
How the Company Makes MoneyChurch & Dwight generates revenue primarily through the sale of consumer products across various categories. The company's revenue model is centered on its strong brand portfolio, which includes household, personal care, and health-related products. Key revenue streams include sales from its well-established brands such as Arm & Hammer, Trojan, and OxiClean. The company leverages its broad distribution network to sell products through major retailers, e-commerce channels, and international markets. Strategic acquisitions and product innovations also play a significant role in driving growth and expanding market share. Partnerships with retailers for shelf space and marketing initiatives further contribute to its earnings.

Church & Dwight Key Performance Indicators (KPIs)

Any
Any
Consumer Domestic Revenue
Consumer Domestic Revenue
Focuses on revenue generated from domestic consumer sales, providing insight into the company's performance in its home market and its ability to capture and retain local market share.
Chart InsightsChurch & Dwight's Consumer Domestic Revenue shows steady growth in Household Products, with a notable dip in Q1 2025. Personal Care Products have fluctuated but show resilience. The earnings call highlights challenges like U.S. organic sales decline due to retail destocking and struggles in the gummy vitamin business. However, strong brand performance and strategic exits from low-profit segments aim to bolster core operations. Despite a weaker consumer environment, the company is optimistic about EPS growth in late 2025, supported by marketing investments and tariff mitigation strategies.
Data provided by:Main Street Data

Church & Dwight Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -1.81%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment. While Church & Dwight demonstrated strong brand performance, especially in online sales and certain product categories like TheraBreath and HERO, the company faced challenges with organic sales decline and tariff exposure. The strategic decision to exit certain businesses aims to focus on core brands and mitigate tariff impacts. However, the decline in U.S. organic sales and struggles in the gummy vitamin business present significant challenges.
Q1-2025 Updates
Positive Updates
Strong Brand Performance
Church & Dwight gained share in nine of its 14 major brands, with more than 80% of the business growing volume share in the quarter.
Online Sales Growth
Online sales reached close to 23% of global sales, indicating significant growth in the online class of trade.
TheraBreath and HERO Performance
THERABREATH mouthwash consumption grew 26%, and HERO acne care grew consumption by 13%, both significantly outpacing their categories.
International Business Growth
The international business delivered sales growth of 2.7% in the quarter, with organic sales increasing by 5.8%.
EPS Performance
Adjusted EPS was $0.91, beating the outlook by $0.01.
Negative Updates
Organic Sales Decline
Organic sales decreased by 1.2%, primarily due to retail destocking which accounted for a 300 basis point drag.
U.S. Organic Sales Decline
U.S. organic sales declined by 3%, driven entirely by negative volume from retail destocking.
Gummy Vitamin Business Struggles
The gummy vitamin category grew 4.8%, but Church & Dwight's consumption was down 19%.
Revenue and Organic Sales Decline
Reported revenue was down 2.4%, and organic sales were down 1.2% for the quarter.
Tariff Exposure
The company is projecting a gross 12-month run rate tariff exposure of $190 million, with a net impact expected to reduce exposure by approximately 80%.
Company Guidance
In the Church & Dwight's First Quarter 2025 Earnings Conference Call, the company provided guidance that included several key metrics. The full-year organic sales growth outlook was revised to 0% to 2%, reflecting a weaker U.S. consumer environment and no anticipated bounce-back from Q1 retailer destocking, which accounted for a 300 basis point drag on organic sales. The adjusted earnings per share (EPS) for Q1 was $0.91, slightly exceeding expectations by $0.01. The company also discussed strategic actions, such as pursuing alternatives for the Flawless, Spinbrush, and Waterpik showerhead businesses, which generate 2% of total net sales but have below-average profitability. Additionally, they aim to reduce their 12-month run rate tariff exposure of $190 million by approximately 80% through portfolio decisions and supply chain actions. ARM & HAMMER brands showed strong performance, with laundry detergent consumption growing 3.4% and unit dose rising 26.9% despite the overall category decline. The company remains committed to marketing investments, targeting 11% of net sales for the year, and anticipates EPS growth in the back half of 2025.

Church & Dwight Financial Statement Overview

Summary
Church & Dwight presents a strong financial profile with stable revenue and profit margins, solid balance sheet health, and robust cash flow generation. Despite moderate financial leverage, the company maintains efficient capital management and operational profitability. Continued focus on revenue growth and enhancing net margins could improve overall financial performance.
Income Statement
78
Positive
The income statement reveals a stable but modest revenue growth with a recent slight decline. The gross profit margin remains strong at approximately 45%, indicating efficient cost management. Net profit margin slightly decreased in the TTM period, settling around 9.5%, reflecting controlled expenses but suggesting room for profit enhancement. The EBIT and EBITDA margins are stable, supporting consistent operational efficiency.
Balance Sheet
75
Positive
The balance sheet shows a healthy equity position with an equity ratio of 50.8% in the TTM period. The debt-to-equity ratio decreased slightly to 0.53, showing prudent financial leverage management. Return on equity is stable at around 12.7%, indicating effective use of shareholders' capital. However, a moderate level of debt suggests the need for cautious leverage management.
Cash Flow
82
Very Positive
The cash flow statement reflects robust operational cash generation with a positive trend in free cash flow, growing by approximately 15.6% from the previous period. Operating cash flow to net income ratio is strong at around 1.87, indicating efficient cash conversion from profits. The free cash flow to net income ratio is also robust at 1.61, suggesting good liquidity and flexibility in meeting financial commitments.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.11B5.87B5.38B5.19B4.90B
Gross Profit2.79B2.59B2.25B2.26B2.21B
EBITDA1.06B1.30B826.30M1.30B1.22B
Net Income585.30M755.60M413.90M827.50M785.90M
Balance Sheet
Total Assets8.88B8.57B8.35B8.00B7.41B
Cash, Cash Equivalents and Short-Term Investments964.10M344.50M270.30M240.60M183.10M
Total Debt2.20B2.61B2.67B2.56B2.16B
Total Liabilities4.52B4.71B4.86B4.76B4.39B
Stockholders Equity4.36B3.86B3.49B3.23B3.02B
Cash Flow
Free Cash Flow976.40M807.10M706.40M875.00M891.40M
Operating Cash Flow1.16B1.03B885.20M993.80M990.30M
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

Technical Analysis Sentiment
Negative
Last Price97.23
Price Trends
50DMA
97.20
Positive
100DMA
100.36
Negative
200DMA
102.75
Negative
Market Momentum
MACD
-0.05
Negative
RSI
49.96
Neutral
STOCH
52.81
Neutral
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 97.23 is below the 20-day moving average (MA) of 97.29, above the 50-day MA of 97.20, and below the 200-day MA of 102.75, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 52.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHD.

Church & Dwight Risk Analysis

Church & Dwight disclosed 34 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$3.89B23.5322.16%2.56%10.32%18.55%
71
Outperform
$23.95B41.7213.35%1.19%2.18%-26.08%
68
Neutral
$16.12B23.491176.27%3.73%-2.64%189.29%
68
Neutral
$42.27B17.36229.84%3.89%-3.12%34.80%
68
Neutral
$43.85B41.6510.22%3.59%-1.18%-29.18%
66
Neutral
$71.26B24.90977.07%2.32%0.98%12.12%
65
Neutral
£10.64B8.723.35%285.19%-1.40%17.93%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CHD
Church & Dwight
97.23
-3.21
-3.20%
CLX
Clorox
130.81
1.21
0.93%
CL
Colgate-Palmolive
87.93
-10.73
-10.88%
IPAR
Inter Parfums
121.05
-12.19
-9.15%
KMB
Kimberly Clark
127.38
-8.57
-6.30%
KVUE
Kenvue, Inc.
22.84
4.72
26.05%

Church & Dwight Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Church & Dwight Enters New $2 Billion Credit Agreement
Positive
Jul 18, 2025

On July 17, 2025, Church & Dwight Co., Inc. entered into a new Credit Agreement, replacing its previous $1.5 billion unsecured revolving credit facility from June 16, 2022. The new agreement increases the aggregate commitments to $2.0 billion, with an option to extend to $2.75 billion, and includes various interest rate options and covenants. This strategic financial move aims to enhance the company’s financial flexibility and support its operational needs, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (CHD) stock is a Hold with a $110.00 price target. To see the full list of analyst forecasts on Church & Dwight stock, see the CHD Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 26, 2025