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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Inter Parfums, Inc.

Procter & Gamble Co.

e.l.f. Beauty, Inc.

Kenvue, Inc.

Church & Dwight Co., Inc.

Colgate-Palmolive Co.

Reynolds Consumer Products, Inc.

Kimberly-Clark Corp.

The Estée Lauder Companies, Inc.

The Clorox Co.

Coty, Inc.

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 -20.85%, its profits have risen by 19.8% ; the PEG ratio of the company is 1.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.85% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

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.

-11.82%

-1.01

22.15%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.85%

EBIT Growth (5y)

2.80%

EBIT to Interest (avg)

13.08

Debt to EBITDA (avg)

1.57

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.93

Tax Ratio

23.41%

Dividend Payout Ratio

39.12%

Pledged Shares

Institutional Holding

91.74%

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

6.98

EV to EBIT

27.62

EV to EBITDA

23.11

EV to Capital Employed

5.11

EV to Sales

4.80

PEG Ratio

Dividend Yield

0.79%

ROCE (Latest)

18.51%

ROE (Latest)

18.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,215.4 MM

DIVIDEND PER SHARE(HY)

Highest at USD 10.39

DIVIDEND PAYOUT RATIO(Y)

Highest at 49.26%

RAW MATERIAL COST(Y)

Fallen by -2.08% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.18 times

NET SALES(Q)

Highest at USD 1,644.2 MM

-8What is not working for the Company

PRE-TAX PROFIT(Q)

Lowest at USD 188.1 MM

NET PROFIT(Q)

Lowest at USD 143.5 MM

EPS(Q)

Lowest at USD 0.6

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

Operating Cash Flow

Highest at USD 1,215.4 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 10.39 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 1,644.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Inventory Turnover Ratio

Highest at 6.18 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 49.26%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.08% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 56.5 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Pre-Tax Profit

Lowest at USD 188.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Fallen at -25.68%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 143.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.6

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)