CHURCH & DWIGHT CO INC (CHD) Stock Fundamental Analysis
NYSE:CHD - New York Stock Exchange, Inc. - US1713401024 - Common Stock - Currency: USD
Taking everything into account, CHD scores 4 out of 10 in our fundamental rating. CHD was compared to 12 industry peers in the Household Products industry. CHD has an average financial health and profitability rating. CHD has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
CHD had positive earnings in the past year.
CHD had a positive operating cash flow in the past year.
Each year in the past 5 years CHD has been profitable.
In the past 5 years CHD always reported a positive cash flow from operatings.
1.2 Ratios
CHD's Return On Assets of 5.98% is in line compared to the rest of the industry. CHD outperforms 41.67% of its industry peers.
CHD has a Return On Equity of 11.95%. This is in the lower half of the industry: CHD underperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.07%, CHD is in line with its industry, outperforming 58.33% of the companies in the same industry.
CHD had an Average Return On Invested Capital over the past 3 years of 11.43%. This is below the industry average of 15.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 11.95% | ||
| ROIC | 11.07% |
ROA(3y)6.79%
ROA(5y)8.26%
ROE(3y)14.96%
ROE(5y)19.3%
ROIC(3y)11.43%
ROIC(5y)12.36%
1.3 Margins
CHD's Profit Margin of 8.66% is in line compared to the rest of the industry. CHD outperforms 50.00% of its industry peers.
CHD's Profit Margin has declined in the last couple of years.
CHD has a Operating Margin of 17.79%. This is amongst the best in the industry. CHD outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of CHD has remained more or less at the same level.
CHD has a better Gross Margin (44.47%) than 66.67% of its industry peers.
CHD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.79% | ||
| PM (TTM) | 8.66% | ||
| GM | 44.47% |
OM growth 3Y-5.93%
OM growth 5Y-0.41%
PM growth 3Y-15.6%
PM growth 5Y-7.48%
GM growth 3Y1.56%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
CHD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CHD has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHD has about the same amount of shares outstanding.
The debt/assets ratio for CHD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.40 indicates that CHD is not in any danger for bankruptcy at the moment.
CHD's Altman-Z score of 5.40 is fine compared to the rest of the industry. CHD outperforms 75.00% of its industry peers.
CHD has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as CHD would need 2.37 years to pay back of all of its debts.
CHD's Debt to FCF ratio of 2.37 is amongst the best of the industry. CHD outperforms 83.33% of its industry peers.
CHD has a Debt/Equity ratio of 0.50. This is a neutral value indicating CHD is somewhat dependend on debt financing.
CHD has a Debt to Equity ratio of 0.50. This is in the better half of the industry: CHD outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 5.4 |
ROIC/WACC1.33
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.84 indicates that CHD should not have too much problems paying its short term obligations.
CHD's Current ratio of 1.84 is in line compared to the rest of the industry. CHD outperforms 41.67% of its industry peers.
CHD has a Quick Ratio of 1.33. This is a normal value and indicates that CHD is financially healthy and should not expect problems in meeting its short term obligations.
CHD has a Quick ratio (1.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.96% over the past year.
The Earnings Per Share has been growing slightly by 6.83% on average over the past years.
CHD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.13%.
Measured over the past years, CHD shows a small growth in Revenue. The Revenue has been growing by 6.98% on average per year.
EPS 1Y (TTM)3.96%
EPS 3Y4.42%
EPS 5Y6.83%
EPS Q2Q%1.08%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y5.57%
Revenue growth 5Y6.98%
Sales Q2Q%-0.32%
3.2 Future
Based on estimates for the next years, CHD will show a small growth in Earnings Per Share. The EPS will grow by 7.09% on average per year.
The Revenue is expected to grow by 4.04% on average over the next years.
EPS Next Y1.96%
EPS Next 2Y4.63%
EPS Next 3Y5.3%
EPS Next 5Y7.09%
Revenue Next Year0.5%
Revenue Next 2Y2.12%
Revenue Next 3Y2.66%
Revenue Next 5Y4.04%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.66, which means the current valuation is very expensive for CHD.
83.33% of the companies in the same industry are cheaper than CHD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.48. CHD is around the same levels.
The Price/Forward Earnings ratio is 24.07, which indicates a rather expensive current valuation of CHD.
75.00% of the companies in the same industry are cheaper than CHD, based on the Price/Forward Earnings ratio.
CHD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.66 | ||
| Fwd PE | 24.07 |
4.2 Price Multiples
75.00% of the companies in the same industry are cheaper than CHD, based on the Enterprise Value to EBITDA ratio.
CHD's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CHD is more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.06 | ||
| EV/EBITDA | 18.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)13.61
PEG (5Y)3.91
EPS Next 2Y4.63%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
CHD has a Yearly Dividend Yield of 1.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.89, CHD is paying slightly less dividend.
With a Dividend Yield of 1.28, CHD pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of CHD has a limited annual growth rate of 4.47%.
CHD has been paying a dividend for at least 10 years, so it has a reliable track record.
CHD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.47%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
54.04% of the earnings are spent on dividend by CHD. This is a bit on the high side, but may be sustainable.
CHD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP54.04%
EPS Next 2Y4.63%
EPS Next 3Y5.3%
90.92
-1.71 (-1.85%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners88.74%
Inst Owner Change-0.44%
Ins Owners0.12%
Ins Owner Change12.67%
Market Cap22.39B
Analysts67.14
Price Target103.4 (13.73%)
Short Float %3.05%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1.13
Dividend Growth(5Y)4.47%
DP54.04%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.49%
Min EPS beat(2)0.38%
Max EPS beat(2)8.61%
EPS beat(4)3
Avg EPS beat(4)5.79%
Min EPS beat(4)-0.49%
Max EPS beat(4)14.65%
EPS beat(8)6
Avg EPS beat(8)5.95%
EPS beat(12)9
Avg EPS beat(12)-11.09%
EPS beat(16)13
Avg EPS beat(16)-6.5%
Revenue beat(2)1
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)0.35%
Revenue beat(4)3
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)0.35%
Revenue beat(8)5
Avg Revenue beat(8)-0.53%
Revenue beat(12)8
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)0.13%
PT rev (1m)-0.46%
PT rev (3m)-6.83%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-10.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.71%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-4.82%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.66 | ||
| Fwd PE | 24.07 | ||
| P/S | 3.69 | ||
| P/FCF | 24.06 | ||
| P/OCF | 20.87 | ||
| P/B | 5.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.27 |
EPS(TTM)3.41
EY3.75%
EPS(NY)3.78
Fwd EY4.15%
FCF(TTM)3.78
FCFY4.16%
OCF(TTM)4.36
OCFY4.79%
SpS24.63
BVpS17.84
TBVpS-3.47
PEG (NY)13.61
PEG (5Y)3.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 11.95% | ||
| ROCE | 14.24% | ||
| ROIC | 11.07% | ||
| ROICexc | 12.61% | ||
| ROICexgc | 59.64% | ||
| OM | 17.79% | ||
| PM (TTM) | 8.66% | ||
| GM | 44.47% | ||
| FCFM | 15.34% |
ROA(3y)6.79%
ROA(5y)8.26%
ROE(3y)14.96%
ROE(5y)19.3%
ROIC(3y)11.43%
ROIC(5y)12.36%
ROICexc(3y)12.35%
ROICexc(5y)13.1%
ROICexgc(3y)72.7%
ROICexgc(5y)174.51%
ROCE(3y)14.76%
ROCE(5y)16.27%
ROICexcg growth 3Y-49.88%
ROICexcg growth 5Y-2.25%
ROICexc growth 3Y-4.16%
ROICexc growth 5Y3.32%
OM growth 3Y-5.93%
OM growth 5Y-0.41%
PM growth 3Y-15.6%
PM growth 5Y-7.48%
GM growth 3Y1.56%
GM growth 5Y0.07%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 59.4% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 11.63 | ||
| Cash Conversion | 81.35% | ||
| Profit Quality | 177.19% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 5.4 |
F-Score7
WACC8.34%
ROIC/WACC1.33
Cap/Depr(3y)85.36%
Cap/Depr(5y)72.49%
Cap/Sales(3y)3.36%
Cap/Sales(5y)2.88%
Profit Quality(3y)148.1%
Profit Quality(5y)132.69%
High Growth Momentum
Growth
EPS 1Y (TTM)3.96%
EPS 3Y4.42%
EPS 5Y6.83%
EPS Q2Q%1.08%
EPS Next Y1.96%
EPS Next 2Y4.63%
EPS Next 3Y5.3%
EPS Next 5Y7.09%
Revenue 1Y (TTM)1.13%
Revenue growth 3Y5.57%
Revenue growth 5Y6.98%
Sales Q2Q%-0.32%
Revenue Next Year0.5%
Revenue Next 2Y2.12%
Revenue Next 3Y2.66%
Revenue Next 5Y4.04%
EBIT growth 1Y-3.1%
EBIT growth 3Y-0.68%
EBIT growth 5Y6.55%
EBIT Next Year22.73%
EBIT Next 3Y10.78%
EBIT Next 5Y9.02%
FCF growth 1Y5.65%
FCF growth 3Y3.72%
FCF growth 5Y4.31%
OCF growth 1Y-1.03%
OCF growth 3Y5.17%
OCF growth 5Y5.99%