Church & Dwight Co Inc CHD

Morningstar Rating
$104.39 +1.48 (1.44%)
View Full Chart

Company Report

Church & Dwight: C-Suite Swap Fails To Alter Thesis; Investors Should Remain on the Sidelines

No-moat Church & Dwight announced that, after nearly nine years at the helm, CEO Matt Farrell will step down in March, with Rick Dierker, a 15-year veteran of the firm who currently serves as CFO and head of operations, slated to assume the top spot. Farrell will continue to serve as executive chairman to ensure a smooth transition. Given that Dierker has been intimately involved in crafting and executing the firm's strategic playbook, including assessing potential inorganic opportunities, we don't expect Church & Dwight will veer from its current course with him at the helm. As a result, our Standard Capital Allocation Rating remains in place, as does our $68 fair value estimate.

Price vs Fair Value

CHD is trading at a 676% premium.
Price
$104.39
Fair Value
$43.00
Uncertainty
Medium
1-Star Price
$57.90
5-Star Price
$12.90
Economic Moat
Ncvp
Capital Allocation
Hqqhsvp

Bulls Say, Bears Say

Bulls

We think Church could boost sales by expanding the distribution of its recently acquired brands, TheraBreath mouthwash and Hero pimple patches, at home and abroad.

Bears

We expect promotions will ultimately return to historical levels, which stands to dampen sales and gross margins.

News

Trading Information

Previous Close Price
$102.91
Day Range
$102.94104.48
52-Week Range
$82.25110.31
Bid/Ask
$100.58 / $108.28
Market Cap
$25.56 Bil
Volume/Avg
1.4 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
31.83
Price/Sales
4.30
Dividend Yield (Trailing)
1.08%
Dividend Yield (Forward)
1.09%
Total Yield
2.25%

Company Profile

Church & Dwight is the leading global producer of baking soda. Beyond baking soda, the products in its portfolio have vast category reach, including laundry products, cat litter, oral care, deodorant, and nasal care, all sold under the Arm & Hammer brand. Its mix also includes Batiste, OxiClean, Vitafusion, WaterPik, Hero, and TheraBreath, which together with Arm & Hammer constitute around 70% of its annual sales and profits. Even as it works to extend the reach of its products, Church & Dwight still derives more than 80% of its sales from its home market in the US.
Sector
Consumer Defensive
Industry
Household & Personal Products
Stock Style Box
Mid Core
Total Number of Employees
5,550

Competitors

Valuation

Metric
CHD
CLX
PG
Price/Earnings (Normalized)
31.8326.4426.61
Price/Book Value
5.9361.888.14
Price/Sales
4.302.885.10
Price/Cash Flow
23.5721.7921.15
Price/Earnings
CHD
CLX
PG

Financial Strength

Metric
CHD
CLX
PG
Quick Ratio
0.940.570.46
Current Ratio
1.531.030.73
Interest Coverage
11.105.1720.77
Quick Ratio
CHD
CLX
PG

Profitability

Metric
CHD
CLX
PG
Return on Assets (Normalized)
9.89%11.03%13.43%
Return on Equity (Normalized)
21.07%495.02%33.48%
Return on Invested Capital (Normalized)
14.62%20.94%20.04%
Return on Assets
CHD
CLX
PG

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