Today we're going to take a closer look at large-cap Consumer Discretionary company Church & Dwight Company, whose shares are currently trading at $98.15. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Church & Dwight Company's P/B and P/E Ratios Are Higher Than Average:
Church & Dwight Co., Inc. develops, manufactures, and markets household, personal care, and specialty products. The company belongs to the Consumer Discretionary sector, which has an average price to earnings (P/E) ratio of 22.96 and an average price to book (P/B) ratio of 4.24. In contrast, Church & Dwight Company has a trailing 12 month P/E ratio of 55.8 and a P/B ratio of 5.96.
Church & Dwight Company's PEG ratio is 4.66, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.
Shareholders Are Confronted With Declining Revenue and Earnings Trends:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $4,145,900 | $4,357,700 | $4,895,800 | $5,190,100 | $179,000 | $579,300 |
| Revenue Growth | n/a | 5.11% | 12.35% | 6.01% | -96.55% | 223.63% |
| Operating Margins | 19% | 19% | 21% | 21% | 334% | 111% |
| Net Margins | 14% | 14% | 16% | 16% | 231% | 75% |
| Net Income (k) | $568,600 | $615,900 | $785,900 | $827,500 | $413,900 | $437,200 |
| Net Interest Expense (k) | $79,400 | $73,600 | $61,000 | $54,500 | $89,600 | $113,900 |
| Depreciation & Amort. (k) | $64,400 | $63,800 | $66,200 | $68,400 | $67,000 | $69,700 |
| Earnings Per Share | $2.27 | $2.44 | $3.12 | $3.32 | $1.68 | $1.76 |
| EPS Growth | n/a | 7.49% | 27.87% | 6.41% | -49.4% | 4.76% |
| Diluted Shares (k) | 250,700 | 252,100 | 252,200 | 249,600 | 246,300 | 248,700 |
| Free Cash Flow (k) | $703,200 | $790,800 | $891,400 | $875,000 | $706,400 | $944,000 |
| Capital Expenditures | $60,400 | $73,700 | $98,900 | $118,800 | $178,800 | $202,200 |
| Current Ratio | 0.81 | 0.88 | 0.8 | 0.59 | 1.18 | 1.47 |
