Church & Dwight Shares Lost 8% Since Disappointing Q2 Earnings Announcement

Church & Dwight Co., Inc. (NYSE:CHD) is a prominent American manufacturer of household products, including Arm & Hammer baking soda and OxiClean. The company competes in a challenging market against giants like Procter & Gamble and Colgate-Palmolive. Recently, Read Michael, the Executive Vice President of International, made a significant insider purchase of 3,000 shares of CHD at $92.07 each, boosting his total holdings to 5,505 shares.

Despite this insider confidence, Church & Dwight faces several challenges that impact its valuation. The company holds a rating due to declining growth prospects. In Q1 2025, it reported a decrease in net sales by 2.4%, with organic sales dropping by 1.2%, primarily due to a 1.4% fall in volume. This downturn is linked to a weakening US consumer environment and retailer destocking efforts.

Tariff headwinds further dampen Church & Dwight's growth outlook, with no immediate signs of recovery. The company's financial metrics reflect these challenges, showcasing a high P/E ratio of 38.96, indicating that investors are paying a premium for its earnings. The price-to-sales ratio stands at 3.71, and the enterprise value to sales ratio is 3.90, suggesting a high valuation relative to sales. Additionally, the enterprise value to operating cash flow ratio is 21.95, indicating potential overvaluation based on its cash flow. Despite these concerns, Church & Dwight maintains a current ratio of 1.95, demonstrating its ability to cover short-term liabilities with short-term assets. The earnings yield is 2.57%, reflecting the return on investment for shareholders.

Church & Dwight Co., Inc. (NYSE:CHD) is a prominent American manufacturer of household products, including Arm & Hammer baking soda and OxiClean. The company competes in a challenging market against giants like Procter & Gamble and Colgate-Palmolive. Recently, Read Michael, the Executive Vice President of International, made a significant insider purchase of 3,000 shares of CHD at $92.07 each, boosting his total holdings to 5,505 shares.

Despite this insider confidence, Church & Dwight faces several challenges that impact its valuation. The company holds a rating due to declining growth prospects. In Q1 2025, it reported a decrease in net sales by 2.4%, with organic sales dropping by 1.2%, primarily due to a 1.4% fall in volume. This downturn is linked to a weakening US consumer environment and retailer destocking efforts.

Tariff headwinds further dampen Church & Dwight's growth outlook, with no immediate signs of recovery. The company's financial metrics reflect these challenges, showcasing a high P/E ratio of 38.96, indicating that investors are paying a premium for its earnings. The price-to-sales ratio stands at 3.71, and the enterprise value to sales ratio is 3.90, suggesting a high valuation relative to sales. Additionally, the enterprise value to operating cash flow ratio is 21.95, indicating potential overvaluation based on its cash flow. Despite these concerns, Church & Dwight maintains a current ratio of 1.95, demonstrating its ability to cover short-term liabilities with short-term assets. The earnings yield is 2.57%, reflecting the return on investment for shareholders.

• Church & Dwight Co., Inc. (NYSE:CHD) matched its estimated earnings per share (EPS) of $0.77 and surpassed revenue expectations with approximately $1.582 billion in the fourth quarter of 2024.
• The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing.
• Global online sales accounted for 21.4% of total consumer sales in 2024, highlighting a significant shift towards e-commerce.

Church & Dwight Co., Inc. (NYSE:CHD), a prominent player in the consumer products industry, is known for its wide range of household and personal care products. Competing with other major brands in the Zacks Consumer Products - Staples industry, Church & Dwight reported earnings per share (EPS) of $0.77 on January 31, 2025, matching the estimated EPS. The company generated revenue of approximately $1.582 billion, surpassing the estimated revenue of about $1.565 billion.

In the fourth quarter of 2024, Church & Dwight reported strong financial results, with net sales reaching $1.582 billion, a 3.5% increase from the previous year. This performance exceeded the Zacks Consensus Estimate of $1.563 billion. The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing. These factors contributed to the company's ability to surpass revenue expectations.

The company's quarterly adjusted earnings were $0.77 per share, aligning with the Zacks Consensus Estimate and reflecting an 18.5% increase from the previous year. This improvement highlights the strength of Church & Dwight's brands, successful new product launches, and a continued focus on execution. The company has consistently outperformed consensus EPS estimates in three of the past four quarters, showcasing its ability to deliver strong financial performance.

Church & Dwight's global online sales accounted for 21.4% of total consumer sales in 2024, indicating a significant shift towards e-commerce. The company has made strategic brand investments to position itself for future growth. CEO Matthew Farrell expressed satisfaction with the results, emphasizing the strength of the company's brands and the success of new products. Volume was the primary driver of organic growth, a trend expected to continue into 2025.

The company's financial metrics reflect its strong market position. With a price-to-earnings (P/E) ratio of approximately 44.20, the market has high expectations for Church & Dwight's future earnings growth. The debt-to-equity ratio of 0.41 indicates a relatively low level of debt compared to equity, suggesting a conservative capital structure. Additionally, the current ratio of approximately 1.70 demonstrates the company's good liquidity to cover short-term liabilities.

• Church & Dwight Co., Inc. (NYSE:CHD) matched its estimated earnings per share (EPS) of $0.77 and surpassed revenue expectations with approximately $1.582 billion in the fourth quarter of 2024.
• The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing.
• Global online sales accounted for 21.4% of total consumer sales in 2024, highlighting a significant shift towards e-commerce.

Church & Dwight Co., Inc. (NYSE:CHD), a prominent player in the consumer products industry, is known for its wide range of household and personal care products. Competing with other major brands in the Zacks Consumer Products - Staples industry, Church & Dwight reported earnings per share (EPS) of $0.77 on January 31, 2025, matching the estimated EPS. The company generated revenue of approximately $1.582 billion, surpassing the estimated revenue of about $1.565 billion.

In the fourth quarter of 2024, Church & Dwight reported strong financial results, with net sales reaching $1.582 billion, a 3.5% increase from the previous year. This performance exceeded the Zacks Consensus Estimate of $1.563 billion. The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing. These factors contributed to the company's ability to surpass revenue expectations.

The company's quarterly adjusted earnings were $0.77 per share, aligning with the Zacks Consensus Estimate and reflecting an 18.5% increase from the previous year. This improvement highlights the strength of Church & Dwight's brands, successful new product launches, and a continued focus on execution. The company has consistently outperformed consensus EPS estimates in three of the past four quarters, showcasing its ability to deliver strong financial performance.

Church & Dwight's global online sales accounted for 21.4% of total consumer sales in 2024, indicating a significant shift towards e-commerce. The company has made strategic brand investments to position itself for future growth. CEO Matthew Farrell expressed satisfaction with the results, emphasizing the strength of the company's brands and the success of new products. Volume was the primary driver of organic growth, a trend expected to continue into 2025.

The company's financial metrics reflect its strong market position. With a price-to-earnings (P/E) ratio of approximately 44.20, the market has high expectations for Church & Dwight's future earnings growth. The debt-to-equity ratio of 0.41 indicates a relatively low level of debt compared to equity, suggesting a conservative capital structure. Additionally, the current ratio of approximately 1.70 demonstrates the company's good liquidity to cover short-term liabilities.

• Church & Dwight Co., Inc. (NYSE:CHD) reported a third-quarter earnings per share (EPS) of $0.79, beating the estimated $0.68.
• The company's revenue reached approximately $1.51 billion, surpassing the forecasted $1.50 billion.
• CHD's financial health is highlighted by a debt-to-equity ratio of roughly 0.53 and a current ratio of approximately 1.62.

Church & Dwight Co., Inc. (NYSE:CHD) is a well-known consumer goods company that specializes in household and personal care products. The company is recognized for its strong brand portfolio, which includes Arm & Hammer, Trojan, and OxiClean. CHD competes with other major players in the consumer goods industry, such as Procter & Gamble and Colgate-Palmolive.

On November 1, 2024, CHD reported its third-quarter earnings, revealing an earnings per share (EPS) of $0.79, which exceeded the estimated $0.68. This performance also marked an improvement from the $0.74 EPS reported in the same quarter last year. The company's revenue reached approximately $1.51 billion, surpassing the estimated $1.50 billion, as highlighted by Zacks Investment Research.

The impressive financial results are driven by strong consumer demand and the resilience of CHD's brands. The successful launch of new products also contributed to the company's growth. CHD's ability to adapt and meet consumer needs has been a key factor in its recent financial performance, as discussed during the earnings conference call attended by analysts from major financial institutions.

CHD's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 46.60, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at about 4.24, while the enterprise value to sales ratio is around 4.48, reflecting the company's valuation relative to its sales.

The company's financial health is supported by a debt-to-equity ratio of roughly 0.53, indicating a moderate level of debt. CHD's current ratio of approximately 1.62 suggests a strong liquidity position, enabling it to cover short-term liabilities effectively. The enterprise value to operating cash flow ratio is about 24.65, providing insight into the company's valuation compared to its cash flow from operations.

• Church & Dwight Co., Inc. (NYSE:CHD) reported a third-quarter earnings per share (EPS) of $0.79, beating the estimated $0.68.
• The company's revenue reached approximately $1.51 billion, surpassing the forecasted $1.50 billion.
• CHD's financial health is highlighted by a debt-to-equity ratio of roughly 0.53 and a current ratio of approximately 1.62.

Church & Dwight Co., Inc. (NYSE:CHD) is a well-known consumer goods company that specializes in household and personal care products. The company is recognized for its strong brand portfolio, which includes Arm & Hammer, Trojan, and OxiClean. CHD competes with other major players in the consumer goods industry, such as Procter & Gamble and Colgate-Palmolive.

On November 1, 2024, CHD reported its third-quarter earnings, revealing an earnings per share (EPS) of $0.79, which exceeded the estimated $0.68. This performance also marked an improvement from the $0.74 EPS reported in the same quarter last year. The company's revenue reached approximately $1.51 billion, surpassing the estimated $1.50 billion, as highlighted by Zacks Investment Research.

The impressive financial results are driven by strong consumer demand and the resilience of CHD's brands. The successful launch of new products also contributed to the company's growth. CHD's ability to adapt and meet consumer needs has been a key factor in its recent financial performance, as discussed during the earnings conference call attended by analysts from major financial institutions.

CHD's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 46.60, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at about 4.24, while the enterprise value to sales ratio is around 4.48, reflecting the company's valuation relative to its sales.

The company's financial health is supported by a debt-to-equity ratio of roughly 0.53, indicating a moderate level of debt. CHD's current ratio of approximately 1.62 suggests a strong liquidity position, enabling it to cover short-term liabilities effectively. The enterprise value to operating cash flow ratio is about 24.65, providing insight into the company's valuation compared to its cash flow from operations.

RBC Capital shared its outlook on Church & Dwight (NYSE:CHD) ahead of the upcoming Q1/23 earnings report, scheduled to be released on April 27.

The analysts expect Q1 organic sales growth of 1.6% (in line with the Street estimates) and EPS of $0.76 (vs. Street’s $0.77) and see a modest upside to numbers.

The analysts expect another quarter of household strength driven by the company’s value brands and an improving supply chain. They expect the company’s troubled spots to remain a drag but less than in previous quarters. On the flip side, the company’s recent acquisitions are doing very well (Hero/Therabrush).

The analysts expect a gross margin expansion of 10 bps in the quarter to 42.7%. The company expects gross margin inflection into expansion territory this quarter following the past 10 quarters of contraction.