10Y annualized return is
average
at 9.3% per year
CHD has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Strong Gross Profit Margin
Healthy Interest Coverage Ratio
Solid Return on Equity
Strong Liquidity Ratios
Low Debt Levels
Strong Historical Performance
Diverse and Balanced Portfolio
Innovation-Driven Growth
E-commerce Growth Potential
International Expansion Opportunities
Robust Innovation Pipeline
High Valuation Ratios
Moderate Net Profit Margin
Limited Cash Reserves
Dependence on Power Brands
Market Challenges
Vitamins Business Decline
Overall, Church & Dwight displays strong business quality with a solid historical performance and diverse portfolio, but faces challenges related to brand dependence. Future prospects are promising, particularly in e-commerce and international markets, though the company must navigate competitive pressures and specific category declines.
Analysis Date: January 31, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Church & Dwight Co., Inc. is a company that makes and sells everyday products for your home and personal care. You might recognize their popular ARM & HAMMER brand, which includes baking soda, laundry detergents, and cat litter. They also have other well-known brands like TROJAN for personal care items, OXICLEAN for cleaning solutions, and FIRST RESPONSE for home pregnancy tests. Founded in 1846, the company sells its products in stores and online, helping people with household chores and personal needs.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$37.65
Current Market Price: $104.81
IV/P Ratio: 0.36x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-178.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CHD
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (45.16)
P/B ratio ≤ 1.5 (4.93)
Current ratio ≥ 2.0 (1.70x)
Long-term debt < Net current assets (2.38x)
Margin of safety (-178.0%)
CHD does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
13.03%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
45.18%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
9.58%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The return on equity (ROE) of 13.03% reflects the company's efficient use of shareholder capital to generate profits.
The net profit margin of 9.58% is relatively modest and may indicate pricing pressure or high operating costs that could affect overall profitability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.41x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.70x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
With a current ratio of 1.70 and a quick ratio of 1.24, CHD demonstrates solid liquidity, showing its ability to cover short-term liabilities with its short-term assets.
A debt-to-equity ratio of 0.41 indicates that the company maintains a conservative leverage profile, reducing the risk of financial distress.
The cash ratio of 0.73 suggests that while the company can cover short-term liabilities, it may not have a significant buffer in cash reserves for unforeseen expenses.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Church & Dwight has demonstrated consistent growth over the decades, with significant returns for long-term investors. An example is the transformation of a $1,000 investment in 1990 to over $114,000 today, showcasing a reliable business model.
The company has a well-diversified product portfolio, with seven power brands accounting for 70% of revenues and profits. This balanced approach allows for resilience in various economic conditions.
Innovation plays a crucial role in Church & Dwight's growth strategy, with new products contributing significantly to revenue. In 2024, half of the organic growth came from new product launches.
While the power brands drive a significant portion of the revenue, there is a risk associated with over-reliance on these brands for growth, particularly as market conditions fluctuate.
Church & Dwight has positioned itself as a leader in e-commerce, with 21.4% of sales coming from online channels. This trend is likely to continue as consumers shift towards online shopping.
There is significant potential for growth in international markets, with plans to expand brands like HERO and THERABREATH into more countries, leveraging existing distribution networks.
The company has a strong pipeline of innovative products set to launch in 2025, which may drive further growth and market penetration.
The company faces potential hurdles from market competition and economic conditions, which could impact growth projections and market share.
The vitamins segment has struggled with double-digit declines, indicating challenges in a key product category that could hinder overall growth.