Church & Dwight (CHD) AI Stock Analysis

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Church & Dwight

(NYSE:CHD)

Rating:70Outperform

Price Target:

$104.00

▲(12.58% Upside)

Church & Dwight's overall stock score reflects a stable financial position and strategic initiatives like the Touchland acquisition. However, high valuation and challenges in certain business segments weigh on the score.

Positive Factors

Acquisitions

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.

Earnings

CHD reported better than expected Q2 results, with organic sales up 0.1%, exceeding expectations, driven by strong brand share growth, innovation, and positive category consumption trends.

Market Share

CHD's market share prospects are improving, highlighting its historical strong management track record and category recovery.

Negative Factors

Guidance

Management remained cautious and guided for organic growth below consensus.

Market Valuation

The premium valuation of 25.4 times 2026 EPS is seen as already reflecting the benefit of the doubt, considering muted year-over-year growth.

Retail and Consumer Trends

Volumes were negatively impacted by retailer destocking, which is expected to remain a headwind given below-historical category growth rates.

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

Market Cap

$22.50B

Dividend Yield1.26%

Average Volume (3M)2.27M

Price to Earnings (P/E)43.7

Beta (1Y)0.04

Revenue Growth1.13%

EPS Growth-34.78%

CountryUS

Employees5,750

SectorConsumer Defensive

Sector Strength46

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)0.94

Shares Outstanding243,608,690

10 Day Avg. Volume2,044,414

30 Day Avg. Volume2,270,126

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.12

Enterprise Value/Revenue4.15

Enterprise Value/Gross Profit9.33

Enterprise Value/Ebitda24.74

Forecast

1Y Price Target

$100.77

Price Target Upside9.08% Upside

Rating ConsensusHold

Number of Analyst Covering15

Church & Dwight Business Overview & Revenue Model

Company DescriptionChurch & Dwight Co., Inc. is an American consumer goods company known for its diverse portfolio of products primarily in the household and personal care sectors. Founded in 1846, the company operates in various categories, including laundry detergent, personal care, and health care. Some of its most recognized brands include Arm & Hammer, Trojan, and OxiClean. The company is headquartered in Ewing, New Jersey, and serves a global market with a focus on innovation and sustainability in its product offerings.

How the Company Makes MoneyChurch & 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 Key Performance Indicators (KPIs)

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, but Personal Care Products are facing challenges. Despite recent declines, the earnings call highlighted strategic moves like the acquisition of Touchland and strong brand performances, such as ARM & HAMMER and THERABREATH, which could bolster future growth. However, pressures from tariffs, inflation, and product recalls are impacting margins. The company is focusing on innovation and strategic brand management to navigate these challenges, aiming for modest organic sales growth of 0% to 2% for the year.

Data provided by:

Main Street Data

Church & Dwight Earnings Call Summary

Earnings Call Date:Aug 01, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 24, 2025

Earnings Call Sentiment Neutral

Church & Dwight's earnings call presented a mixed picture. The acquisition of Touchland and growth in international markets and online sales were significant positives. However, challenges in the vitamin business, gross margin declines, and issues in the U.S. consumer business and BATISTE brand consumption created areas of concern.

Q2-2025 Updates

Positive Updates

Touchland Acquisition Success

Church & Dwight closed the acquisition of Touchland, which is the fastest-growing brand in the hand sanitizer category in the U.S., and is the #2 hand sanitizer in the category. Touchland experienced strong growth in Q2, outpacing the category and gaining share.

International Segment Growth

International sales grew 5.3% in the quarter, with organic sales increasing by 4.8% due to a combination of higher volume, price, and mix. Growth was led by HERO, THERABREATH, and FEMFRESH.

Online Sales Expansion

Online sales as a percentage of global sales reached 23%, reflecting a continuing trend towards e-commerce.

THERABREATH and HERO Brand Performance

THERABREATH consumption grew 22.5%, maintaining its position as the #2 mouthwash with a 21% share. HERO outpaced the acne category with consumption growth of 11.4%, remaining the #1 brand in acne care with a 22% share.

Negative Updates

Gross Margin Decline

Adjusted gross margin decreased by 40 basis points from a year ago, affected by inflation, tariffs, and a product recall.

Vitamin Business Challenges

The gummy vitamin business was a drag on organic growth, with consumption down around 25% due to TDP declines, despite the category growing almost 4%.

U.S. Consumer Business Sales Decline

Organic sales for the U.S. consumer business declined 1%, with volume growth offset by negative price mix.

BATISTE Consumption Decline

BATISTE experienced a nearly 7% decline in consumption due to competitive price increases, economic pressure driving trade down, and supply issues.

Company Guidance

During the Church & Dwight Second Quarter 2025 Earnings Conference Call, the company provided guidance and insights into its financial performance and strategic initiatives. Organic sales grew by 0.1%, surpassing the initial outlook of minus 2% to flat. The adjusted gross margin decreased by 40 basis points, which also exceeded expectations. Adjusted EPS reached $0.94, exceeding the previous outlook of $0.85. The company remains confident in achieving its full-year organic growth target of 0% to 2%. Church & Dwight highlighted the acquisition of Touchland, which contributed positively to sales and market share in the hand sanitizer category. The company is undergoing a strategic review of its vitamin business, considering options such as potential joint ventures or divestitures due to mixed results in revitalization efforts. Despite challenges, the company is optimistic about its brand performance, new product launches, and continued share gains across key categories. The international segment reported a 5.3% sales growth, driven by higher volume, price, and mix. Looking ahead, Church & Dwight maintains a full-year adjusted EPS growth expectation of 0% to 2%, factoring in the Touchland acquisition and strategic exits of certain businesses.

Church & Dwight Financial Statement Overview

Summary

Church & Dwight shows a solid financial foundation with strong cash flow management and a stable balance sheet. However, the decline in revenue growth and pressure on margins highlight areas for improvement.

Income Statement

Positive

Church & Dwight's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 8.1%, which is concerning. However, the company maintains a healthy gross profit margin of 44.47% and a net profit margin of 8.66%. The EBIT and EBITDA margins have decreased compared to previous years, suggesting some pressure on operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.50, indicating moderate leverage. The return on equity (ROE) stands at 12.01%, showing a reasonable return for shareholders. The equity ratio is approximately 50%, suggesting a balanced capital structure with a good proportion of equity financing.

Cash Flow

Positive

Cash flow analysis reveals strong free cash flow growth of 18.3% in the TTM period. The operating cash flow to net income ratio is 0.89, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 0.87, reflecting robust cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.07B	6.11B	5.87B	5.38B	5.19B	4.90B
Gross Profit	2.70B	2.79B	2.59B	2.25B	2.26B	2.21B
EBITDA	1.02B	1.09B	1.30B	831.90M	1.31B	1.22B
Net Income	525.20M	585.30M	755.60M	413.90M	827.50M	785.90M
Balance Sheet
Total Assets	8.79B	8.88B	8.57B	8.35B	8.00B	7.41B
Cash, Cash Equivalents and Short-Term Investments	923.20M	964.10M	344.50M	270.30M	240.60M	183.10M
Total Debt	2.21B	2.20B	2.41B	2.67B	2.56B	2.16B
Total Liabilities	4.39B	4.52B	4.71B	4.86B	4.76B	4.39B
Stockholders Equity	4.39B	4.36B	3.86B	3.49B	3.23B	3.02B
Cash Flow
Free Cash Flow	930.60M	976.40M	807.10M	706.40M	875.00M	891.40M
Operating Cash Flow	1.07B	1.16B	1.03B	885.20M	993.80M	990.30M
Investing Cash Flow	-131.40M	-183.30M	-234.30M	-728.60M	-682.00M	-608.10M
Financing Cash Flow	-512.80M	-343.40M	-725.60M	-120.90M	-252.10M	-360.10M

Church & Dwight Technical Analysis

Technical Analysis Sentiment

Negative

Last Price92.38

Price Trends

50DMA

95.05

Negative

100DMA

96.51

Negative

200DMA

101.51

Negative

Market Momentum

MACD

-0.47

Negative

RSI

46.10

Neutral

STOCH

21.63

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 92.38 is below the 20-day moving average (MA) of 92.79, below the 50-day MA of 95.05, and below the 200-day MA of 101.51, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 21.63 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	77 Outperform	$365.34B	23.99	31.23%	2.63%	0.29%	7.85%
UL	73 Outperform	$151.72B	25.33	28.36%	3.18%	-0.30%	-14.60%
CLX	71 Outperform	$14.39B	18.32	249.61%	4.12%	0.16%	191.17%
CHD	70 Outperform	$22.50B	43.75	12.07%	1.26%	1.13%	-34.78%
CL	63 Neutral	$68.00B	23.63	705.21%	2.42%	0.05%	3.55%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
KMB	60 Neutral	$43.07B	18.02	196.26%	3.81%	-6.89%	7.52%

* Consumer Defensive Sector Average

Performance Comparison

CHD

Church & Dwight

93.03

-6.56

-6.59%

CLX

Clorox

118.97

-33.01

-21.72%

Colgate-Palmolive

84.45

-19.04

-18.40%

KMB

Kimberly Clark

130.21

-8.03

-5.81%

Procter & Gamble

156.96

-8.88

-5.35%

Unilever

62.52

-0.43

-0.68%

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.

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: Aug 22, 2025