Church & Dwight Co., Inc. (CHD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Inter Parfums, Inc.

Procter & Gamble Co.

Colgate-Palmolive Co.

Kenvue, Inc.

Church & Dwight Co., Inc.

Reynolds Consumer Products, Inc.

Coty, Inc.

Kimberly-Clark Corp.

e.l.f. Beauty, Inc.

The Estée Lauder Companies, Inc.

The Clorox Co.

Why is Church & Dwight Co., Inc. ?

High Management Efficiency with a high ROCE of 18.11%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.08

Poor long term growth as Operating profit has grown by an annual rate 2.28% of over the last 5 years

Flat results in Jun 25

DEBTORS TURNOVER RATIO(HY) Lowest at 10.12 times
INTEREST COVERAGE RATIO(Q) Lowest at 1,315.32
RAW MATERIAL COST(Y) Grown by 8.6% (YoY)

With ROCE of 20.21%, it has a very expensive valuation with a 5.30 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.69%, its profits have risen by 19.8% ; the PEG ratio of the company is 1.7

Below par performance in long term as well as near term

Along with generating -23.69% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Church & Dwight Co., Inc. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Church & Dwight Co., Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Church & Dwight Co., Inc.

-23.61%

-1.01

21.98%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.72%

EBIT Growth (5y)

2.28%

EBIT to Interest (avg)

13.08

Debt to EBITDA (avg)

1.57

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.91

Tax Ratio

23.41%

Dividend Payout Ratio

47.88%

Pledged Shares

Institutional Holding

89.55%

ROCE (avg)

18.11%

ROE (avg)

21.21%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.40

EV to EBIT

26.25

EV to EBITDA

22.25

EV to Capital Employed

5.30

EV to Sales

4.99

PEG Ratio

1.66

Dividend Yield

0.98%

ROCE (Latest)

20.21%

ROE (Latest)

20.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 10.12

DIVIDEND PAYOUT RATIO(Y)

Highest at 38.05%

CASH AND EQV(HY)

Highest at USD 1,997.7 MM

-7What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.12 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,315.32

RAW MATERIAL COST(Y)

Grown by 8.6% (YoY

OPERATING PROFIT(Q)

Lowest at USD 309.1 MM

PRE-TAX PROFIT(Q)

Lowest at USD 250.5 MM

Here's what is working for Church & Dwight Co., Inc.

Dividend per share

Highest at USD 10.12 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Cash and Eqv

Highest at USD 1,997.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 38.05%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Church & Dwight Co., Inc.

Interest Coverage Ratio

Lowest at 1,315.32

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 10.12 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at USD 309.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 250.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Raw Material Cost

Grown by 8.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales