CHURCH & DWIGHT CO INC (CHD) Stock Fundamental Analysis
NYSE:CHD - New York Stock Exchange, Inc. - US1713401024 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CHD. CHD was compared to 12 industry peers in the Household Products industry. CHD has an average financial health and profitability rating. CHD is valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years CHD had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 6.45%, CHD perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
CHD has a worse Return On Equity (12.69%) than 66.67% of its industry peers.
CHD has a Return On Invested Capital (11.59%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CHD is below the industry average of 15.79%.
The 3 year average ROIC (11.43%) for CHD is below the current ROIC(11.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.45% | ||
| ROE | 12.69% | ||
| ROIC | 11.59% |
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 has a Profit Margin of 9.52%. This is comparable to the rest of the industry: CHD outperforms 58.33% of its industry peers.
CHD's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.02%, CHD belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
CHD's Operating Margin has been stable in the last couple of years.
CHD's Gross Margin of 45.51% is fine compared to the rest of the industry. CHD outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of CHD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.02% | ||
| PM (TTM) | 9.52% | ||
| GM | 45.51% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CHD is still creating some value.
CHD has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CHD remains at a similar level compared to 5 years ago.
Compared to 1 year ago, CHD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.48 indicates that CHD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.48, CHD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of CHD is 2.37, which is a good value as it means it would take CHD, 2.37 years of fcf income to pay off all of its debts.
CHD's Debt to FCF ratio of 2.37 is fine compared to the rest of the industry. CHD outperforms 75.00% of its industry peers.
CHD has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
CHD's Debt to Equity ratio of 0.48 is fine compared to the rest of the industry. CHD outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 5.48 |
ROIC/WACC1.35
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.95 indicates that CHD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.95, CHD is in line with its industry, outperforming 58.33% of the companies in the same industry.
CHD has a Quick Ratio of 1.43. This is a normal value and indicates that CHD is financially healthy and should not expect problems in meeting its short term obligations.
CHD's Quick ratio of 1.43 is fine compared to the rest of the industry. CHD outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
CHD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.94%.
CHD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.83% yearly.
Looking at the last year, CHD shows a small growth in Revenue. The Revenue has grown by 2.18% in the last year.
The Revenue has been growing slightly by 6.98% on average over the past years.
EPS 1Y (TTM)4.94%
EPS 3Y4.42%
EPS 5Y6.83%
EPS Q2Q%-5.21%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y5.57%
Revenue growth 5Y6.98%
Sales Q2Q%-2.41%
3.2 Future
CHD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.88% yearly.
The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y2.02%
EPS Next 2Y4.64%
EPS Next 3Y5.13%
EPS Next 5Y6.88%
Revenue Next Year-0.02%
Revenue Next 2Y1.75%
Revenue Next 3Y2.24%
Revenue Next 5Y3.39%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 28.19, 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.
Compared to an average S&P500 Price/Earnings ratio of 26.03, CHD is valued at the same level.
CHD is valuated quite expensively with a Price/Forward Earnings ratio of 25.37.
Based on the Price/Forward Earnings ratio, CHD is valued a bit more expensive than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.94. CHD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.19 | ||
| Fwd PE | 25.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHD indicates a slightly more expensive valuation: CHD is more expensive than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CHD is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.39 | ||
| EV/EBITDA | 17.69 |
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)13.94
PEG (5Y)4.13
EPS Next 2Y4.64%
EPS Next 3Y5.13%
5. Dividend
5.1 Amount
CHD has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
CHD's Dividend Yield is slightly below the industry average, which is at 2.82.
Compared to an average S&P500 Dividend Yield of 2.36, CHD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.47%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
48.54% of the earnings are spent on dividend by CHD. This is a bit on the high side, but may be sustainable.
The dividend of CHD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP48.54%
EPS Next 2Y4.64%
EPS Next 3Y5.13%
95.83
-1.02 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners88.74%
Inst Owner Change1.09%
Ins Owners0.18%
Ins Owner Change13.28%
Market Cap23.58B
Analysts68
Price Target104.51 (9.06%)
Short Float %2.7%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.13
Dividend Growth(5Y)4.47%
DP48.54%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.05%
Min EPS beat(2)-0.49%
Max EPS beat(2)0.38%
EPS beat(4)3
Avg EPS beat(4)5.91%
Min EPS beat(4)-0.49%
Max EPS beat(4)14.65%
EPS beat(8)6
Avg EPS beat(8)6.27%
EPS beat(12)9
Avg EPS beat(12)-11.4%
EPS beat(16)13
Avg EPS beat(16)-6.54%
Revenue beat(2)1
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)0.13%
Revenue beat(4)2
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)0.13%
Revenue beat(8)5
Avg Revenue beat(8)-0.41%
Revenue beat(12)7
Avg Revenue beat(12)-0.01%
Revenue beat(16)9
Avg Revenue beat(16)0.1%
PT rev (1m)-5.51%
PT rev (3m)-5.68%
EPS NQ rev (1m)-10.81%
EPS NQ rev (3m)-10.66%
EPS NY rev (1m)-5.65%
EPS NY rev (3m)-6.02%
Revenue NQ rev (1m)-5.2%
Revenue NQ rev (3m)-5.14%
Revenue NY rev (1m)-3.07%
Revenue NY rev (3m)-3.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.19 | ||
| Fwd PE | 25.37 | ||
| P/S | 3.88 | ||
| P/FCF | 25.39 | ||
| P/OCF | 21.86 | ||
| P/B | 5.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.69 |
EPS(TTM)3.4
EY3.55%
EPS(NY)3.78
Fwd EY3.94%
FCF(TTM)3.77
FCFY3.94%
OCF(TTM)4.38
OCFY4.57%
SpS24.67
BVpS18.49
TBVpS-3.02
PEG (NY)13.94
PEG (5Y)4.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.45% | ||
| ROE | 12.69% | ||
| ROCE | 14.9% | ||
| ROIC | 11.59% | ||
| ROICexc | 13.45% | ||
| ROICexgc | 65.03% | ||
| OM | 19.02% | ||
| PM (TTM) | 9.52% | ||
| GM | 45.51% | ||
| FCFM | 15.3% |
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-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 61.88% | ||
| Cap/Sales | 2.47% | ||
| Interest Coverage | 12.51 | ||
| Cash Conversion | 77.24% | ||
| Profit Quality | 160.79% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 5.48 |
F-Score6
WACC8.59%
ROIC/WACC1.35
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)4.94%
EPS 3Y4.42%
EPS 5Y6.83%
EPS Q2Q%-5.21%
EPS Next Y2.02%
EPS Next 2Y4.64%
EPS Next 3Y5.13%
EPS Next 5Y6.88%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y5.57%
Revenue growth 5Y6.98%
Sales Q2Q%-2.41%
Revenue Next Year-0.02%
Revenue Next 2Y1.75%
Revenue Next 3Y2.24%
Revenue Next 5Y3.39%
EBIT growth 1Y7.85%
EBIT growth 3Y-0.68%
EBIT growth 5Y6.55%
EBIT Next Year28.26%
EBIT Next 3Y12.26%
EBIT Next 5Y8.7%
FCF growth 1Y13.65%
FCF growth 3Y3.72%
FCF growth 5Y4.31%
OCF growth 1Y7.3%
OCF growth 3Y5.17%
OCF growth 5Y5.99%