CHURCH & DWIGHT CO INC (CHD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CHD - US1713401024 - Common Stock
92.27 USD
+0.79 (+0.86%)
Taking everything into account, CHD scores 4 out of 10 in our fundamental rating. CHD was compared to 12 industry peers in the Household Products industry. CHD has only an average score on both its financial health and profitability. CHD is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year CHD was profitable.
- CHD had a positive operating cash flow in the past year.
- CHD had positive earnings in each of the past 5 years.
- In the past 5 years CHD always reported a positive cash flow from operatings.
1.2 Ratios
- CHD has a Return On Assets (8.56%) which is comparable to the rest of the industry.
- With a Return On Equity value of 18.53%, CHD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- CHD has a Return On Invested Capital of 10.87%. This is comparable to the rest of the industry: CHD outperforms 50.00% of its industry peers.
- CHD had an Average Return On Invested Capital over the past 3 years of 11.43%. This is below the industry average of 14.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.56% | ||
| ROE | 18.53% | ||
| ROIC | 10.87% |
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
- With a decent Profit Margin value of 12.74%, CHD is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- CHD's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 17.40%, CHD belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- In the last couple of years the Operating Margin of CHD has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 44.44%, CHD is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- CHD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.4% | ||
| PM (TTM) | 12.74% | ||
| GM | 44.44% |
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.
- Compared to 1 year ago, CHD has more shares outstanding
- CHD has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for CHD has been reduced compared to a year ago.
2.2 Solvency
- CHD has an Altman-Z score of 4.78. This indicates that CHD is financially healthy and has little risk of bankruptcy at the moment.
- CHD has a better Altman-Z score (4.78) than 66.67% of its industry peers.
- The Debt to FCF ratio of CHD is 2.16, which is a good value as it means it would take CHD, 2.16 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CHD (2.16) is better than 83.33% of its industry peers.
- A Debt/Equity ratio of 0.52 indicates that CHD is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.52, CHD is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.3
WACC8.34%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that CHD should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.09, CHD is in line with its industry, outperforming 41.67% of the companies in the same industry.
- CHD has a Quick Ratio of 1.09. This is a bad value and indicates that CHD is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of CHD (0.66) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.00% over the past year.
- The Earnings Per Share has been growing slightly by 6.83% on average over the past years.
- The Revenue has been growing slightly by 1.45% in the past year.
- Measured over the past years, CHD shows a small growth in Revenue. The Revenue has been growing by 6.98% on average per year.
EPS 1Y (TTM)3%
EPS 3Y4.42%
EPS 5Y6.83%
EPS Q2Q%2.53%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y5.57%
Revenue growth 5Y6.98%
Sales Q2Q%4.96%
3.2 Future
- The Earnings Per Share is expected to grow by 5.57% on average over the next years.
- The Revenue is expected to grow by 2.84% on average over the next years.
EPS Next Y2.35%
EPS Next 2Y4.68%
EPS Next 3Y5.39%
EPS Next 5Y5.57%
Revenue Next Year1.77%
Revenue Next 2Y2.32%
Revenue Next 3Y2.76%
Revenue Next 5Y2.84%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.90 indicates a quite expensive valuation of 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.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, CHD is valued at the same level.
- Based on the Price/Forward Earnings ratio of 24.41, the valuation of CHD can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, CHD is valued a bit more expensive than 75.00% of the companies in the same industry.
- CHD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 24.41 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CHD is valued more expensive than 83.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CHD is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.67 | ||
| EV/EBITDA | 18.2 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)11.43
PEG (5Y)3.94
EPS Next 2Y4.68%
EPS Next 3Y5.39%
5. Dividend
5.1 Amount
- CHD has a Yearly Dividend Yield of 1.27%.
- Compared to an average industry Dividend Yield of 2.65, CHD is paying slightly less dividend.
- Compared to the average S&P500 Dividend Yield of 1.82, CHD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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
- 36.55% of the earnings are spent on dividend by CHD. This is a low number and sustainable payout ratio.
- The dividend of CHD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.55%
EPS Next 2Y4.68%
EPS Next 3Y5.39%
CHURCH & DWIGHT CO INC / CHD FAQ
What is the fundamental rating for CHD stock?
ChartMill assigns a fundamental rating of 4 / 10 to CHD.
Can you provide the valuation status for CHURCH & DWIGHT CO INC?
ChartMill assigns a valuation rating of 1 / 10 to CHURCH & DWIGHT CO INC (CHD). This can be considered as Overvalued.
How profitable is CHURCH & DWIGHT CO INC (CHD) stock?
CHURCH & DWIGHT CO INC (CHD) has a profitability rating of 5 / 10.
What is the financial health of CHURCH & DWIGHT CO INC (CHD) stock?
The financial health rating of CHURCH & DWIGHT CO INC (CHD) is 6 / 10.
How sustainable is the dividend of CHURCH & DWIGHT CO INC (CHD) stock?
The dividend rating of CHURCH & DWIGHT CO INC (CHD) is 5 / 10 and the dividend payout ratio is 36.55%.