Church & Dwight Co. Inc
Exchange: NYSESector: Consumer DefensiveIndustry: Household & Personal Products
Church & Dwight Co., Inc., founded in 1846, is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda. The Company manufactures and markets a wide range of personal care, household, and specialty products under recognized brand names such as ARM & HAMMER ®, OXICLEAN ®, VITAFUSION ®, BATISTE ®, WATERPIK ®, THERABREATH ® and HERO ®. These seven key brands represent approximately 70% of the Company’s products sales. For more information, visit the Company’s website.
Did you know?
Generated $8.9 in free cash flow for every $1 of capital expenditure in FY25.
Current Price
$92.85
+0.00%GoodMoat Value
$63.98
31.1% overvaluedProfile
Valuation (TTM)
Market Cap$22.30B
P/E30.26
EV$24.52B
P/B5.57
Shares Out240.13M
P/Sales3.59
Revenue$6.20B
EV/EBITDA18.54
Church & Dwight Co. Inc (CHD) Stock Analysis
GoodMoat Analysis
Church & Dwight (CHD) appears to have a moderate competitive moat, but its valuation is a significant concern. The stock trades at a substantial premium to the GoodMoat target price, suggesting an unfavourable margin of safety for a value investor.
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Church & Dwight is a consumer defensive company known for managing a portfolio of household and personal care brands, including Arm & Hammer, OxiClean, and Trojan. Applying the GoodMoat framework, the company likely demonstrates a moderate moat, potentially scoring points for its strong brand portfolio (Moat Criterion 6) and niche dominance in categories like baking soda-based products (Criterion 10). Its financial quality is adequate, with an ROE of 18.4% exceeding the 15-20% high-quality threshold and a reasonable debt/equity ratio of 0.55. However, revenue growth is modest at 3.9% YoY.
The primary issue is valuation. The current P/E of 30.8 is high for the growth profile, and the stock price of $94.38 is 47.5% above the GoodMoat target of $63.98. This indicates a deeply unfavourable or negative margin of safety according to the framework's DCF bands. Following the Decision Framework (Section 6), while the business may pass the initial Moat & Quality gate, it likely fails the Valuation & Risk gate. The extreme premium to the target price, coupled with only modest growth, places the stock in an 'unfavourable' category for a value investor seeking a margin of safety. Further investigation would require a strong justification for why the intrinsic value is significantly higher than the target.
Analysis based on data as of 2024-05-15.
Market Cap$22.30B
Current Price$92.85
P/E Ratio30.26
Forward P/E—
PEG Ratio-1.46
EPS$3.02
Book Value$16.67
P/B Ratio5.57
CHD Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 5.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 1.8B
Revenue
4.4B
FY19
4.9B
FY20
5.2B
FY21
5.4B
FY22
5.9B
FY23
6.1B
FY24
6.2B
FY25
Net Income
616M
FY19
786M
FY20
828M
FY21
414M
FY22
756M
FY23
585M
FY24
737M
FY25
CHD 52-Week Range
$81.27
$105.26
50-Day MA: $98.15200-Day MA: $91.44
Did you know?
Pays a 1.29% dividend yield.
Church & Dwight Co. Inc (CHD) Financial Summary
Church & Dwight Co. Inc (CHD) is a Consumer Defensive company in the Household & Personal Products industry, listed on NYSE. The stock currently trades at $92.85 with a market capitalization of $22.30B.
Key valuation metrics include a P/E ratio of 30.26, price-to-book ratio of 5.57, and EPS of $3.02. The company reports a profit margin of 11.9% and return on equity of 18.4%.
CHD Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $22.30B |
| P/E Ratio | 30.26 |
| EPS | $3.02 |
| P/B Ratio | 5.57 |
| P/S Ratio | 3.59 |
| EV/EBITDA | 18.54 |
| Dividend Yield | 1.29% |
| Profit Margin | 11.9% |
| Return on Equity | 18.4% |
| Debt/Equity | 0.55 |
CHD Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.36B | $615.90M |
| FY20 | $4.90B | $785.90M |
| FY21 | $5.19B | $827.50M |
| FY22 | $5.38B | $413.90M |
| FY23 | $5.87B | $755.60M |
| FY24 | $6.11B | $585.30M |
| FY25 | $6.20B | $736.80M |
Church & Dwight Co. Inc (CHD) Valuation
Based on GoodMoat's DCF model, Church & Dwight Co. Inc has a fair value estimate of $63.98. At the current price of $92.85, the stock appears 45.1% overvalued relative to our intrinsic value estimate.
CHD Quality Indicators
Church & Dwight Co. Inc maintains a profit margin of 11.9% and an operating margin of 17.4%. Return on equity stands at 18.4%. The current ratio is 1.07. Debt-to-equity ratio is 0.55.
About Church & Dwight Co. Inc
Church & Dwight Co., Inc., founded in 1846, is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda. The Company manufactures and markets a wide range of personal care, household, and specialty products under recognized brand names such as ARM & HAMMER ®, OXICLEAN ®, VITAFUSION ®, BATISTE ®, WATERPIK ®, THERABREATH ® and HERO ®. These seven key brands represent approximately 70% of the Company’s products sales. For more information, visit the Company’s website.
CHD Free Cash Flow
Church & Dwight Co. Inc generated $1.09B in trailing twelve-month free cash flow, representing an FCF yield of 4.90%. This moderate FCF yield indicates reasonable cash generation.
CHD Shares Outstanding
Church & Dwight Co. Inc has 0.24 billion shares outstanding at a share price of $92.85, giving it a market capitalization of $22.30B.
CHD Recent Insider Trades
Recent insider transactions at Church & Dwight Co. Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Price Penry W | SELL | 7,000 | $704074.00 |
| Vergis Janet S. | SELL | 12,960 | $1.31M |