Church & Dwight Co Inc (CHD) stock analysis

P/E above its 5-year median

Church & Dwight's P/E of 34.5 is above its own 5-year median of 33.0.

P/E above the industry

Church & Dwight's P/E of 34.5 is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 29.9.

EV/EBITDA above its 5-year median

Church & Dwight's EV/EBITDA of 25.1 is above its 5-year median of 24.6.

P/B above the industry

Church & Dwight's price-to-book of 5.90 is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 4.86.

Trading above fair value

The share price of $112.02 is above our fair value estimate of $92.11.

Margin of safety under 20%

The price is 21.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 21.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -1.0% over the last twelve months, against a 5-year average of -1.3% a year.

Growing slower than the industry

Revenue grew 1.7% over the last twelve months; the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median is 5.9%.

Guidance raised

Church & Dwight raised its Third quarter Tax rate outlook on Jul 31, 2026.

Gross margin improving

Gross margin was 46.1% over the last twelve months, against 44.4% a year earlier.

Return on equity over 15%

Return on equity was 17.8% over the last twelve months and averaged 18.2% over five years.

Return on capital over 10%

Return on invested capital was 14.3%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Church & Dwight's return on equity of 17.8% is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of -1.2%.

Earnings shrank over 5 years

Net income shrank 1.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.4% over the last twelve months, against a 5-year average of 11.6%.

Net margin above the industry

Church & Dwight's net margin of 12.4% is above the Soap, Detergents, and Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations median of 0.2%.

High debt

Debt is 49.2% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 71.6% five years ago to 49.2%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 54.6% of total debt.

Interest well covered

Operating income covers interest expense 11.6 times.

Short-term assets don't cover short-term debts

Current assets are 0.96 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.40; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Church & Dwight paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Church & Dwight yields 1.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 37.5% of net income.

Covered by free cash flow

Dividends take 27.5% of free cash flow.