CHURCH & DWIGHT CO INC (CHD) Stock Fundamental Analysis
NYSE:CHD - New York Stock Exchange, Inc. - US1713401024 - Common Stock - Currency: USD
CHD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. CHD has only an average score on both its financial health and profitability. CHD does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year CHD was profitable.
CHD had a positive operating cash flow in the past year.
In the past 5 years CHD has always been profitable.
Each year in the past 5 years CHD had a positive operating cash flow.
1.2 Ratios
CHD has a Return On Assets (6.45%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 12.69%, CHD is doing worse than 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.59%, CHD is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CHD is below the industry average of 15.82%.
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
Looking at the Profit Margin, with a value of 9.52%, CHD is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CHD has declined.
CHD has a better Operating Margin (19.02%) than 83.33% of its industry peers.
CHD's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 45.51%, CHD is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CHD is creating some value.
The number of shares outstanding for CHD has been increased compared to 1 year ago.
The number of shares outstanding for CHD remains at a similar level compared to 5 years ago.
CHD has a better debt/assets ratio than last year.
2.2 Solvency
CHD has an Altman-Z score of 5.47. This indicates that CHD is financially healthy and has little risk of bankruptcy at the moment.
CHD's Altman-Z score of 5.47 is fine compared to the rest of the industry. CHD outperforms 66.67% of its industry peers.
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.
The Debt to Equity ratio of CHD (0.48) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 5.47 |
ROIC/WACC1.36
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.95 indicates that CHD should not have too much problems paying its short term obligations.
CHD has a Current ratio of 1.95. This is comparable to the rest of the industry: CHD outperforms 58.33% of its industry peers.
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.
With a decent Quick ratio value of 1.43, CHD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.94% over the past year.
The Earnings Per Share has been growing slightly by 6.83% on average over the past years.
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
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 Year0.13%
Revenue Next 2Y1.84%
Revenue Next 3Y2.39%
Revenue Next 5Y4.04%
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 28.09, which means the current valuation is very expensive for CHD.
Compared to the rest of the industry, the Price/Earnings ratio of CHD indicates a rather expensive valuation: CHD more expensive than 83.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CHD to the average of the S&P500 Index (27.19), we can say CHD is valued inline with the index average.
CHD is valuated quite expensively with a Price/Forward Earnings ratio of 25.29.
Based on the Price/Forward Earnings ratio, CHD is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
CHD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 25.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHD indicates a rather expensive valuation: CHD more expensive than 83.33% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHD indicates a rather expensive valuation: CHD more expensive than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.32 | ||
| EV/EBITDA | 17.65 |
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)14.34
PEG (5Y)4.12
EPS Next 2Y4.63%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, CHD has a reasonable but not impressive dividend return.
CHD's Dividend Yield is slightly below the industry average, which is at 2.94.
Compared to an average S&P500 Dividend Yield of 2.35, CHD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of CHD has a limited annual growth rate of 4.47%.
CHD has paid a dividend for at least 10 years, which is 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
48.54% 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.
DP48.54%
EPS Next 2Y4.63%
EPS Next 3Y5.3%
95.51
-1.56 (-1.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners88.74%
Inst Owner Change0%
Ins Owners0.12%
Ins Owner Change12.67%
Market Cap23.52B
Analysts67.86
Price Target104.21 (9.11%)
Short Float %3.65%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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)1.25%
PT rev (3m)-5.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.72%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-5.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.14%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.09 | ||
| Fwd PE | 25.29 | ||
| P/S | 3.87 | ||
| P/FCF | 25.32 | ||
| P/OCF | 21.8 | ||
| P/B | 5.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.65 |
EPS(TTM)3.4
EY3.56%
EPS(NY)3.78
Fwd EY3.95%
FCF(TTM)3.77
FCFY3.95%
OCF(TTM)4.38
OCFY4.59%
SpS24.65
BVpS18.48
TBVpS-3.01
PEG (NY)14.34
PEG (5Y)4.12
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 | 5.47 |
F-Score6
WACC8.54%
ROIC/WACC1.36
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 Y1.96%
EPS Next 2Y4.63%
EPS Next 3Y5.3%
EPS Next 5Y7.09%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y5.57%
Revenue growth 5Y6.98%
Sales Q2Q%-2.41%
Revenue Next Year0.13%
Revenue Next 2Y1.84%
Revenue Next 3Y2.39%
Revenue Next 5Y4.04%
EBIT growth 1Y7.85%
EBIT growth 3Y-0.68%
EBIT growth 5Y6.55%
EBIT Next Year22.3%
EBIT Next 3Y10.07%
EBIT Next 5Y9.02%
FCF growth 1Y13.65%
FCF growth 3Y3.72%
FCF growth 5Y4.31%
OCF growth 1Y7.3%
OCF growth 3Y5.17%
OCF growth 5Y5.99%