Skip to Content

Church & Dwight Co Inc CHD

Morningstar Rating
$102.61 +0.44 (0.43%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Intensifying Competitive Pressure and Macro Headwinds Stand to Deflate Church & Dwight's Trajectory

We’ve long held that no-moat Church & Dwight lacks the scale, resources, and negotiating prowess of its larger brethren. We see this as an unenviable position, particularly when juxtaposed with persistent macro and competitive pressures, cost headwinds, and supply chain tension. Although Church has emphasized 40% of its mix skews toward value offerings, we're skeptical this alone will insulate it over the longer term. Rather, we posit Church’s category mix makes the firm susceptible to consumers trading down or out if their financial position warrants. Beyond the top line, we surmise material profit expansion could be delayed by intensifying competition (from well-resourced peers and lower-priced private-label offerings) if promotional spending steps up from relatively dormant levels of the past few years. As a smaller operator with less-entrenched retail relationships, we think this could put Church in the crosshairs, capping margins. Further, while inflationary headwinds in aggregate have died down, labor, transportation, and logistics remain elevated and could put added pressure on its margin trajectory.

Price vs Fair Value

CHD is trading at a 446% premium.
Price
$102.61
Fair Value
$93.00
Uncertainty
Medium
1-Star Price
$98.80
5-Star Price
$16.20
Economic Moat
Jlyb
Capital Allocation
Xszsfdf

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if CHD is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$102.17
Day Range
$102.24103.69
52-Week Range
$82.25110.31
Bid/Ask
$102.21 / $103.01
Market Cap
$25.09 Bil
Volume/Avg
1.2 Mil / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
31.38
Price/Sales
4.27
Dividend Yield (Trailing)
1.08%
Dividend Yield (Forward)
1.11%
Total Yield
2.28%

Company Profile

Church & Dwight is the leading global producer of baking soda. Beyond baking soda, the products in its portfolio have a 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
RKT
CLX
Price/Earnings (Normalized)
31.389.6922.41
Price/Book Value
6.123.71184.42
Price/Sales
4.272.162.34
Price/Cash Flow
23.6611.6620.22
Price/Earnings
CHD
RKT
CLX

Financial Strength

Metric
CHD
RKT
CLX
Quick Ratio
0.780.400.48
Current Ratio
1.330.640.90
Interest Coverage
10.189.004.82
Quick Ratio
CHD
RKT
CLX

Profitability

Metric
CHD
RKT
CLX
Return on Assets (Normalized)
9.78%8.60%10.58%
Return on Equity (Normalized)
21.27%26.61%945.00%
Return on Invested Capital (Normalized)
14.61%14.24%20.51%
Return on Assets
CHD
RKT
CLX
See how this stock stacks up to its competitors with Morningstar Investor

Household & Personal Products Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Procter & Gamble Co
PG
ZncdygjbvSxrb$396.4 Bil
Unilever PLC ADR
UL
CmwhrfqcyHcjl$145.1 Bil
Colgate-Palmolive Co
CL
FfmpvrbgVywj$80.5 Bil
Kimberly-Clark Corp
KMB
SqglhhgdvdWxngf$48.4 Bil
Reckitt Benckiser Group PLC ADR
RBGLY
PlhqsywVnpvf$39.7 Bil
The Estee Lauder Companies Inc Class A
EL
KsvclqwjBks$35.6 Bil
Kenvue Inc
KVUE
ZxctwjkDzzl$34.9 Bil
Clorox Co
CLX
TmjhvqjclCslg$16.8 Bil
Coty Inc Class A
COTY
BwqtmHmgb$8.6 Bil

Sponsor Center