Church & Dwight Co Inc

CHD

Soap, Detergents, Cleang Preparations, Perfumes, Cosmetics

Mkt Cap

$25.35B

PE

32.50

Debt

$2.207B

Cash

$349.7M

EV

$27.21B

FCF

$775.7M

Market Cap

$25.35B

P/E Ratio

32.50

Debt

$2.207B

Cash

$349.7M

EV

$27.21B

FCF

$775.7M

Charts data: {"Earnings":[{"time":"2014-12-30","value":413900000},{"time":"2015-12-30","value":410400000},{"time":"2016-12-30","value":459000000},{"time":"2017-12-30","value":743400000},{"time":"2018-12-30","value":568600000},{"time":"2019-12-30","value":615900000},{"time":"2020-12-30","value":785900000},{"time":"2021-12-30","value":827500000},{"time":"2022-12-30","value":413900000},{"time":"2023-12-30","value":755600000}],"Sales":[{"time":"2014-12-30","value":3297600000},{"time":"2015-12-30","value":3394800000},{"time":"2016-12-30","value":3493100000},{"time":"2017-12-30","value":3776200000},{"time":"2018-12-30","value":4145900000},{"time":"2019-12-30","value":4357700000},{"time":"2020-12-30","value":4895800000},{"time":"2021-12-30","value":5190100000},{"time":"2022-12-30","value":5375600000},{"time":"2023-12-30","value":5867900000}],"Net Margins":[{"time":"2014-12-30","value":0.12551552644347405},{"time":"2015-12-30","value":0.12089077412513255},{"time":"2016-12-30","value":0.13140190661589993},{"time":"2017-12-30","value":0.19686457285101425},{"time":"2018-12-30","value":0.13714754335608673},{"time":"2019-12-30","value":0.14133602588521468},{"time":"2020-12-30","value":0.16052534825769027},{"time":"2021-12-30","value":0.1594381611144294},{"time":"2022-12-30","value":0.07699605625418558},{"time":"2023-12-30","value":0.1287683839192897}],"Assets":[{"time":"2014-12-30","value":4381300000},{"time":"2015-12-30","value":4256900000},{"time":"2016-12-30","value":4354100000},{"time":"2017-12-30","value":6014800000},{"time":"2018-12-30","value":6069200000},{"time":"2019-12-30","value":6657400000},{"time":"2020-12-30","value":7414500000},{"time":"2021-12-30","value":7996500000},{"time":"2022-12-30","value":8345600000},{"time":"2023-12-30","value":8569200000}],"Stockholders Equity":[{"time":"2014-12-30","value":2101900000},{"time":"2015-12-30","value":2023200000},{"time":"2016-12-30","value":1977900000},{"time":"2017-12-30","value":2218000000},{"time":"2018-12-30","value":2453800000},{"time":"2019-12-30","value":2667800000},{"time":"2020-12-30","value":3020400000},{"time":"2021-12-30","value":3233200000},{"time":"2022-12-30","value":3489900000},{"time":"2023-12-30","value":3855400000}],"ROE":[{"time":"2014-12-30","value":0.1969170750273562},{"time":"2015-12-30","value":0.20284697508896798},{"time":"2016-12-30","value":0.232064310632489},{"time":"2017-12-30","value":0.3351668169522092},{"time":"2018-12-30","value":0.2317222267503464},{"time":"2019-12-30","value":0.2308643826373791},{"time":"2020-12-30","value":0.26019732485763475},{"time":"2021-12-30","value":0.25593838921192624},{"time":"2022-12-30","value":0.11859938680191409},{"time":"2023-12-30","value":0.19598485241479482}],"ROA":[{"time":"2014-12-30","value":0.14634925706981947},{"time":"2015-12-30","value":0.15837816251262657},{"time":"2016-12-30","value":0.16632599159412967},{"time":"2017-12-30","value":0.1218161867393762},{"time":"2018-12-30","value":0.13044552824095432},{"time":"2019-12-30","value":0.12620542554150269},{"time":"2020-12-30","value":0.13887652572661677},{"time":"2021-12-30","value":0.134946539110861},{"time":"2022-12-30","value":0.07163055981595091},{"time":"2023-12-30","value":0.12339541614153013}]}

Church & Dwight Co., Inc. develops, manufactures, and markets household, personal care, and specialty products. It operates in three segments: Consumer Domestic, Consumer International, and Specialty Products Division. The company offers cat litters, carpet deodorizers, laundry detergents, and baking soda, as well as other baking soda based products under the ARM & HAMMER brand; condoms, lubricants, and vibrators under the TROJAN brand; stain removers, cleaning solutions, laundry detergents, and bleach alternatives under the OXICLEAN brand; toothbrushes under the SPINBRUSH brand; home pregnancy and ovulation test kits under the FIRST RESPONSE brand; depilatories under the NAIR brand; oral analgesics under the ORAJEL brand; laundry detergents under the XTRA brand; gummy dietary supplements under the L'IL CRITTERS and VITAFUSION brands; dry shampoos under the BATISTE brand; water flossers and showerheads under the WATERPIK brand; cold shortening and relief products under the ZICAM brand; oral care products under the THERABREATH brand; and acne treatment products under the HERO brand. Its specialty products include animal productivity products, such as MEGALAC rumen bypass fat, a supplement that enables cows to maintain energy levels during the period of high milk production; BIO-CHLOR and FERMENTEN, which are used to reduce health issues associated with calving, as well as provides needed protein; and CELMANAX refined functional carbohydrate, a yeast-based prebiotic. The company offers sodium bicarbonate; and cleaning and deodorizing products. It sells its consumer products through supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and other discount stores, pet and other specialty stores, and websites and other e-commerce channels; and specialty products to industrial customers and livestock producers through distributors. The company was founded in 1846 and is headquartered in Ewing, New Jersey.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19

DCF

Discounted Cash Flow Valuation of Church & Dwight Co Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$775.7M	$821.6M	$869.4M	$919.1M	$970.7M	$1.024B	$1.08B	$1.137B	$1.196B	$1.257B	$1.32B	$13.2B
DCF		$714.5M	$657.4M	$604.3M	$555M	$509.2M	$466.7M	$427.4M	$391M	$357.3M	$326.3M	$3.263B
Value	$8.272B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 4.8%

Earnings Stability 19%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	12%	13%	20%	14%	14%	16%	16%	7.7%	13%	13%
ROA	16%	17%	12%	13%	13%	14%	13%	7.2%	12%	13%
ROE	20%	23%	34%	23%	23%	26%	26%	12%	20%	19%

What is the average Net Margin?

The average Net Margin over the past 5 years is +13.4%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.67%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.09%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.58%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +21.56%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.48%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	1.93	1.85	3.73	3.84	2.61	2.43	3.44	3.78	3.22	2.84
Debt Equity	0.52	0.57	1.07	1.10	0.77	0.72	0.93	0.77	0.67	0.54
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	56%	100%	56%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.84.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.04.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.56.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	7.7%	7.2%	6.2%	9.2%	0.42%
Net Income	7.4%	5.9%	-1.3%	83%	1.4%
Stockholders Equity	10%	9.5%	8.5%	10%	1.3%
FCF	4.2%	2.8%	-3.3%	14%	-1.8%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.19%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.42%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +5.85%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +1.43%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +9.46%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.33%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +2.79%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -1.83%.