Church & Dwight Company logged a -6.1% change during today's afternoon session, and is now trading at a price of $86.33 per share.
Church & Dwight Company returned gains of 22.0% last year, with its stock price reaching a high of $100.52 and a low of $70.3. Over the same period, the stock outperformed the S&P 500 index by 5.0%. More recently, the company's 50-day average price was $92.36. Church & Dwight Co., Inc. develops, manufactures, and markets household, personal care, and specialty products. Based in Ewing, NJ, the large-cap Consumer Discretionary company has 5,250 full time employees. Church & Dwight Company has offered a 1.2% dividend yield over the last 12 months.
The Company May Be Profitable, but Its Balance Sheet Is Highly Leveraged:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $4,145,900 | $4,357,700 | $4,895,800 | $5,190,100 | $179,000 | $440,700 |
| Operating Margins | 19.0% | 19.0% | 21.0% | 21.0% | 334.0% | 145.0% |
| Net Margins | 14.0% | 14.0% | 16.0% | 16.0% | 231.0% | 101.0% |
| Net Income (k) | $568,600 | $615,900 | $785,900 | $827,500 | $413,900 | $446,800 |
| Net Interest Expense (k) | $79,400 | $73,600 | $61,000 | $54,500 | $89,600 | $110,400 |
| Depreciation & Amort. (k) | -$64,400 | -$63,800 | -$66,200 | -$68,400 | -$67,000 | -$68,200 |
| Earnings Per Share | $2.27 | $2.44 | $3.12 | $3.32 | $1.68 | $1.7999999999999998 |
| Diluted Shares (k) | 250,700 | 252,100 | 252,200 | 249,600 | 246,300 | 247,900 |
| Free Cash Flow (k) | $703,200 | $790,800 | $891,400 | $875,000 | $706,400 | $880,800 |
| Capital Expenditures | $60,400 | $73,700 | $98,900 | $118,800 | $178,800 | $203,200 |
| Net Current Assets (k) | -$2,537,200 | -$3,033,200 | -$3,281,700 | -$3,529,900 | -$3,459,800 | -$3,023,600 |
| Long Term Debt (k) | $1,508,800 | $1,810,200 | $1,812,500 | $1,610,700 | $2,599,500 | $2,400,900 |
| Net Debt / EBITDA | 2.94 | 3.03 | 2.74 | 3.0 | 5.27 | 4.4 |
The Market May Be Overvaluing Church & Dwight Company's Earnings and Assets:
Church & Dwight Company has a trailing twelve month P/E ratio of 51.0, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $3.43, the company has a forward P/E ratio of 26.9. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is -3.8%. On this basis, the company's PEG ratio is -13.45, which indicates that its shares are overpriced. Furthermore, Church & Dwight Company is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.43 is higher than the sector average of 3.12. The company's shares are currently trading 239.6% above their Graham number.
Church & Dwight Company Has an Analyst Consensus of Some Upside Potential:
The 17 analysts following Church & Dwight Company have set target prices ranging from $76.0 to $114.0 per share, for an average of $97.53 with a hold rating. As of April 2023, the company is trading -5.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Church & Dwight Company has a very low short interest because 1.8% of the company's shares are sold short. Institutions own 85.1% of the company's shares, and the insider ownership rate stands at 0.19%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $2,569,589,713.
