Church & Dwight Co Inc

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CHD : NYSE : Consumer Goods
$49.53 -0.09 | -0.18%
Today's Range: 48.87 - 49.64
Avg. Daily Volume: 2060200.0
02/24/17 - 4:02 PM ET

Financial Analysis


CHURCH & DWIGHT INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CHURCH & DWIGHT INC has very weak liquidity. Currently, the Quick Ratio is 0.47 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.23% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)896.0873.6
EBITDA ($mil)0.0193.2
EBIT ($mil)178.3169.2
Net Income ($mil)110.4109.1


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)187.8330.0
Total Assets ($mil)4354.14256.9
Total Debt ($mil)1120.21150.6
Equity ($mil)1977.92023.2


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin46.0848.24
EBITDA Margin0.022.11
Operating Margin19.919.37
Sales Turnover0.80.8
Return on Assets10.549.64
Return on Equity23.220.28
Debt Q4 FY16 Q4 FY15
Current Ratio0.761.04
Debt/Capital0.360.36
Interest Expense0.07.6
Interest Coverage0.022.26


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)258.36259.91
Div / share0.180.17
EPS0.420.41
Book value / share7.667.78
Institutional Own % n/a n/a
Avg Daily Volume1951284.01698595.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 26.15 for the Household Products industry and a value on par with the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 6.39 indicates a significant premium versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 10.12. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHD 28.04 Peers 26.15   CHD 19.29 Peers 17.26

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
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CHD 23.99 Peers 23.20   CHD 3.51 Peers 2.88

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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHD 6.39 Peers 10.12   CHD 13.68 Peers 256.57

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 significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHD 3.62 Peers 3.38   CHD 2.89 Peers -2.08

Average. 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 valuation on par with 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.

 

 

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