Church & Dwight Co Inc

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CHD : NYSE : Consumer Goods
$47.94 -0.39 | -0.81%
Today's Range: 47.82 - 48.19
Avg. Daily Volume: 1,250,600
09/29/16 - 12:28 PM ET

Financial Analysis


CHURCH & DWIGHT INC's gross profit margin for the second quarter of its fiscal year 2016 has increased 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 weak liquidity. Currently, the Quick Ratio is 0.53 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.04% 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.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)877.4847.1
EBITDA ($mil)201.1175.9
EBIT ($mil)175.3151.2
Net Income ($mil)111.673.7


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)210.8203.2
Total Assets ($mil)4310.24228.2
Total Debt ($mil)1082.31073.7
Equity ($mil)2011.91971.6


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin49.4446.96
EBITDA Margin22.9120.76
Operating Margin19.9817.85
Sales Turnover0.80.8
Return on Assets10.539.54
Return on Equity22.5720.46
Debt Q2 FY16 Q2 FY15
Current Ratio0.880.96
Debt/Capital0.350.35
Interest Expense7.17.9
Interest Coverage24.6919.14


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)257.31261.6
Div / share0.180.17
EPS0.430.28
Book value / share7.827.54
Institutional Own % n/a n/a
Avg Daily Volume793376.0806657.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 29.09 for the Household Products industry and a premium compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 6.24 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 38.82. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, CHURCH & DWIGHT INC proves to trade at a discount 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 28.45 Peers 29.09   CHD 19.25 Peers 16.61

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 25.52 Peers 23.52   CHD NM Peers 1.78

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHD 6.24 Peers 38.82   CHD 15.10 Peers 36.89

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 3.63 Peers 3.48   CHD 2.82 Peers -4.99

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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