0.21 | 0.33%
CHURCH & DWIGHT INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CHURCH & DWIGHT INC has weak liquidity. Currently, the Quick Ratio is 0.93 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.72% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 779.3 | 690.6 |
| EBITDA ($mil) | 192.5 | 162.3 |
| EBIT ($mil) | 169.3 | 144.2 |
| Net Income ($mil) | 107.7 | 95.8 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 279.3 | 232.4 |
| Total Assets ($mil) | 4064.5 | 3135.3 |
| Total Debt ($mil) | 853.3 | 276.6 |
| Equity ($mil) | 2085.3 | 2030.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 47.9 | 46.64 |
| EBITDA Margin | 24.7 | 23.5 |
| Operating Margin | 21.72 | 20.88 |
| Sales Turnover | 0.74 | 0.89 |
| Return on Assets | 8.89 | 10.26 |
| Return on Equity | 17.34 | 15.85 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.39 | 1.87 |
| Debt/Capital | 0.29 | 0.12 |
| Interest Expense | 7.1 | 3.0 |
| Interest Coverage | 23.85 | 48.07 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 138.17 | 140.8 |
| Div / share | 0.28 | 0.24 |
| EPS | 0.76 | 0.66 |
| Book value / share | 15.09 | 14.42 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 616137.0 | 704176.0 |
BUY. CHURCH & DWIGHT INC's P/E ratio indicates a premium compared to an average of 24.19 for the Household Products industry and a premium compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 4.24 indicates a significant premium versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 11.22. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, CHURCH & DWIGHT INC seems to be trading at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CHD 25.07 | Peers 24.19 | CHD 18.33 | Peers 15.24 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. CHD is trading at a valuation on par with its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CHD is trading at a premium to its peers. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| CHD 20.62 | Peers 19.93 | CHD 1.76 | Peers 0.90 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. CHD is trading at a premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CHD trades at a significant premium to its peers. |
|||||||||||||||||||||||
| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| CHD 4.24 | Peers 11.22 | CHD 15.38 | Peers 18.16 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CHD is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CHD is expected to trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| CHD 2.93 | Peers 2.60 | CHD 7.61 | Peers 0.36 | |||||||||||||||||||||
|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CHD is trading at a premium to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. CHD has a sales growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||
