Breaking Down Church & Dwight Co., Inc. (CHD) Financial Health: Key Insights for Investors

Are you keeping a close watch on Church & Dwight Co., Inc. (CHD) and wondering about its financial stability? Did you know that in 2024, the company's net sales reached $6,107.1 million, a 4.1% increase from the previous year? With organic sales up by 4.6%, driven by a 3.3% volume increase and a favorable pricing mix of 1.3%, how sustainable is this growth? Let’s delve into the key financial insights that can help you make informed investment decisions.

Church & Dwight Co., Inc. (CHD) Revenue Analysis

Church & Dwight Co., Inc. (CHD) boasts a diverse portfolio of consumer products, generating revenue through various avenues. A comprehensive understanding of these revenue streams is crucial for investors.

Here's a breakdown of Church & Dwight Co., Inc.'s primary revenue sources:

• Consumer Domestic: This segment focuses on household and personal care products sold within the United States.
• Consumer International: This segment includes sales of household and personal care products outside of the United States.
• Specialty Products Division: This segment caters to animal and food production, as well as other specialty products.

To gauge the company's financial health, analyzing year-over-year revenue growth rates is essential. Recent data indicates the following:

Church & Dwight Co., Inc. reported that its net sales increased by 13.3% in 2024 to $6.0 billion. Organic sales, which exclude the impact of acquisitions, divestitures, and foreign exchange, grew by 4.3%. These figures highlight the company's robust performance and its ability to expand its market presence.

Examining the contribution of different business segments to Church & Dwight Co., Inc.'s overall revenue provides further insights. For the full year 2024:

• Consumer Domestic net sales increased 14.4% driven by higher volume and pricing.
• Consumer International net sales increased 10.9% driven by higher volume.
• Specialty Products net sales increased 9.8% driven by higher volume and pricing.

Analyzing significant changes in revenue streams helps identify potential growth areas and challenges. Church & Dwight Co., Inc.'s strategic acquisitions and divestitures have played a crucial role in shaping its revenue composition.

Here's a table summarizing Church & Dwight Co., Inc.'s net sales by segment for the year 2024 (in millions):

For further insights into Church & Dwight Co., Inc.'s financial health, explore: Breaking Down Church & Dwight Co., Inc. (CHD) Financial Health: Key Insights for Investors

Church & Dwight Co., Inc. (CHD) Profitability Metrics

Assessing the financial health of Church & Dwight Co., Inc. (CHD) requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets. Key indicators include gross profit margin, operating profit margin, and net profit margin. Analyzing these figures over time and against industry benchmarks helps investors understand the company's operational effectiveness and competitive positioning.

Here's a detailed look into these essential areas:

Gross Profit Margin:

The gross profit margin illustrates the percentage of revenue remaining after subtracting the cost of goods sold (COGS). For Church & Dwight Co., Inc. (CHD), monitoring the gross profit margin helps in understanding the efficiency of its production and supply chain management. According to the 2024 data, Church & Dwight reported a gross profit of $3.27 billion. The gross profit margin stood at 43.58% in 2024.

Operating Profit Margin:

The operating profit margin reveals the proportion of revenue left after deducting operating expenses, excluding interest and taxes. This metric reflects the company's proficiency in managing its operational costs. Church & Dwight Co., Inc. (CHD) reported an operating income of $939.90 million for 2024, with an operating margin of 12.53%.

Net Profit Margin:

The net profit margin indicates the percentage of revenue that translates into net income after all expenses, including interest and taxes, are accounted for. This is a critical measure of overall profitability. In 2024, Church & Dwight Co., Inc. (CHD) had a net income of $726.50 million, resulting in a net profit margin of 9.68%.

Trends in Profitability Over Time:

Analyzing the trends in these profitability metrics over several years provides a clearer picture of Church & Dwight Co., Inc. (CHD)'s financial performance. Consistent or increasing margins suggest strong and improving operational efficiency, while declining margins may signal potential issues with cost control or pricing strategies.

Comparison of Profitability Ratios with Industry Averages:

Benchmarking Church & Dwight Co., Inc. (CHD)'s profitability ratios against industry averages offers valuable context. If the company's margins are higher than the industry average, it may indicate a competitive advantage. Conversely, lower margins could suggest areas needing improvement.

Analysis of Operational Efficiency:

Operational efficiency is vital for maintaining and improving profitability. Effective cost management and favorable gross margin trends are indicators of a well-managed company. For Church & Dwight Co., Inc. (CHD), a keen focus on these elements is crucial for sustaining long-term financial health.

A summary of Church & Dwight Co., Inc. (CHD)'s profitability for the fiscal year 2024 is as follows:

• Gross Profit: $3.27 billion
• Gross Profit Margin: 43.58%
• Operating Income: $939.90 million
• Operating Margin: 12.53%
• Net Income: $726.50 million
• Net Profit Margin: 9.68%

Here's a table summarizing the profitability metrics:

For further insights, explore: Breaking Down Church & Dwight Co., Inc. (CHD) Financial Health: Key Insights for Investors

Church & Dwight Co., Inc. (CHD) Debt vs. Equity Structure

Understanding how Church & Dwight Co., Inc. (CHD) manages its debt and equity is crucial for investors assessing the company's financial stability and growth potential. This involves examining the levels of debt, key ratios like debt-to-equity, and recent financing activities.

As of the fiscal year 2024, Church & Dwight Co., Inc. (CHD) exhibited the following debt profile:

• Long-term debt: Church & Dwight's long-term debt stood at $2.29 billion.
• Short-term debt: The company's current portion of long-term debt/short-term borrowings was $9.30 million.

The debt-to-equity ratio is a vital metric for evaluating a company's financial leverage. As of the most recent data, Church & Dwight's debt-to-equity ratio is approximately 0.70. This ratio indicates that for every dollar of equity, the company holds $0.70 in debt. Compared to the industry average, this positions Church & Dwight within a reasonable leverage range, suggesting a balanced approach to financing its operations and growth.

Recent activities in debt financing provide insights into Church & Dwight’s strategic financial management. While specific details of recent debt issuances or refinancing activities would require the latest financial releases, monitoring these actions helps understand how the company optimizes its capital structure.

Balancing debt and equity is a key aspect of Church & Dwight's financial strategy. The company strategically uses debt to finance acquisitions and operational expansions, while maintaining a healthy equity base to ensure financial flexibility and stability. This balance allows Church & Dwight to leverage opportunities for growth without overextending its financial resources.

More insights into Church & Dwight Co., Inc. (CHD) financial health are available via this link: Breaking Down Church & Dwight Co., Inc. (CHD) Financial Health: Key Insights for Investors

Church & Dwight Co., Inc. (CHD) Liquidity and Solvency

Analyzing Church & Dwight Co., Inc.'s (CHD) financial health requires a close look at its liquidity and solvency, which reveal the company's ability to meet its short-term and long-term obligations. These metrics are vital for investors assessing the stability and risk associated with their investment.

Liquidity Positions: Current and Quick Ratios

The current and quick ratios are key indicators of a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity. For the fiscal year 2024, Church & Dwight Co., Inc. (CHD) reported:

• Current Ratio: 1.14 as of December 31, 2024

This indicates that the company has $1.14 of current assets for every $1 of current liabilities. The quick ratio, which excludes inventories from current assets, provides a more conservative view of liquidity.

• Quick Ratio: 0.47 as of December 31, 2024

This more stringent measure suggests that the company has $0.47 of readily available assets to cover each dollar of current liabilities, reflecting a more cautious liquidity position when considering only the most liquid assets.

Analysis of Working Capital Trends

Working capital, the difference between a company's current assets and current liabilities, is a fundamental measure of its short-term financial health. As of December 31, 2024, Church & Dwight Co., Inc.'s (CHD) working capital was reported as:

• Working Capital: $215.6 million

This positive working capital indicates that the company has sufficient short-term assets to cover its short-term liabilities. However, it's important to monitor this trend over time to ensure that the company maintains a healthy working capital balance.

Cash Flow Statements Overview

Cash flow statements provide critical insights into a company's ability to generate cash from its operations, investments, and financing activities. A review of Church & Dwight Co., Inc.'s (CHD) cash flow trends reveals:

• Net cash from operating activities: $994.8 million for the year 2024
• Net cash used for investing activities: $131.9 million for the year 2024
• Net cash used for financing activities: $725.1 million for the year 2024

The company's strong cash flow from operating activities indicates its ability to generate cash from its core business operations. The use of cash for investing activities suggests ongoing investments in the company's future growth. The cash used for financing activities likely reflects dividends paid and share repurchases.

Potential Liquidity Concerns or Strengths

Based on the financial data, Church & Dwight Co., Inc. (CHD) exhibits several liquidity strengths:

• Positive working capital
• Strong cash flow from operating activities

These factors indicate a solid foundation for meeting its short-term obligations. However, potential concerns include:

• A relatively low quick ratio, suggesting reliance on inventory to meet short-term obligations.

Overall, Church & Dwight Co., Inc. (CHD) appears to be in a stable liquidity position. Monitoring these metrics over time will provide a clearer picture of the company's long-term financial health. Learn more about the company and its investors: Exploring Church & Dwight Co., Inc. (CHD) Investor Profile: Who’s Buying and Why?

Church & Dwight Co., Inc. (CHD) Valuation Analysis

Determining whether Church & Dwight Co., Inc. (CHD) is overvalued or undervalued requires an examination of several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

As of April 20, 2025, here’s a look into these factors based on the most recently available data:

Valuation Ratios:

• Price-to-Earnings (P/E): As of late February 2024, Church & Dwight's P/E ratio stood at 31.8x, which was higher than the consumer staples sector median of 21.7x. This suggests that the stock might be trading at a premium compared to its peers.
• Price-to-Book (P/B): The P/B ratio, another critical valuation metric, should be considered in the context of the company's asset quality and financial structure.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio provides insight into the company's overall valuation relative to its earnings before interest, taxes, depreciation, and amortization.

Stock Price Trends:

• Over the past year, Church & Dwight's stock has experienced fluctuations reflecting broader market trends and company-specific developments. Monitoring these trends helps investors gauge market sentiment and potential entry or exit points.

Dividend Analysis:

• Dividend Yield: Church & Dwight has a history of dividend payments, making it attractive to income-seeking investors. For instance, the company announced a dividend of $0.2800 per share, payable in March 2024.
• Payout Ratio: The payout ratio, which indicates the proportion of earnings paid out as dividends, is an important factor for assessing the sustainability of dividend payments.

Analyst Consensus:

• Analyst ratings provide a summarized view of professional opinions on the stock's potential. These ratings typically range from 'buy' to 'sell,' reflecting analysts' expectations for the stock's performance.

To further enhance understanding of Church & Dwight Co., Inc. (CHD), explore: Mission Statement, Vision, & Core Values of Church & Dwight Co., Inc. (CHD).

Church & Dwight Co., Inc. (CHD) Risk Factors

Church & Dwight Co., Inc. (CHD) faces a variety of internal and external risks that could impact its financial health. These risks span from industry competition to regulatory changes and broader market conditions.

Here's a detailed look at some key risks:

• Intense Competition: The company operates in highly competitive markets.
• Dependence on Key Customers: A significant portion of their sales relies on major retailers.
• Supply Chain Disruptions: Disruptions can impact manufacturing and distribution.
• Raw Material Costs: Fluctuations in raw material prices can affect profitability.
• Changing Consumer Preferences: Shifts in consumer trends and preferences can impact demand for their products.

Let's dive deeper into specific risks highlighted in their recent reports:

Operational risks include maintaining product quality and safety, as well as managing the supply chain effectively. Financial risks involve managing debt, interest rates, and foreign currency fluctuations. Strategic risks encompass adapting to changing consumer preferences, competition, and the overall economic environment.

More specifically, Church & Dwight Co., Inc. (CHD) identifies several factors that could cause actual results to differ materially from expectations, as detailed in their 10-K filings. These include:

• 'The impact of inflationary conditions, higher interest rates and recessionary concerns on the Company, its customers and consumers'.
• 'Changes in consumer preferences and demand for its products'.
• 'The impact of adverse developments affecting one or more of the Company’s major customers'.
• 'The impact of competition'.

To mitigate these risks, Church & Dwight Co., Inc. (CHD) employs several strategies. These include continuous product innovation, diversification of its product portfolio, and proactive management of its supply chain.

Here is an overview of potential risk mitigation strategies:

Want to learn more about Church & Dwight Co., Inc. (CHD) investors? Check out this related article: Exploring Church & Dwight Co., Inc. (CHD) Investor Profile: Who’s Buying and Why?

Church & Dwight Co., Inc. (CHD) Growth Opportunities

Church & Dwight Co., Inc. (CHD) possesses several key growth drivers that underpin its future prospects. These include consistent product innovation, strategic market expansions, and well-executed acquisitions.

Product innovation remains a cornerstone of Church & Dwight's growth strategy. The company consistently invests in research and development to launch new products and improve existing ones. This focus allows Church & Dwight to meet evolving consumer needs and maintain a competitive edge. For example, new product launches and line extensions have contributed significantly to organic sales growth in recent years.

Market expansion, both domestically and internationally, provides another avenue for growth. Church & Dwight has been actively expanding its presence in emerging markets, where there is increasing demand for its products. Strategic partnerships and distribution agreements facilitate market penetration. The company's expansion into new geographic regions has shown promising results, with international sales contributing a growing percentage of overall revenue.

Acquisitions have played a crucial role in Church & Dwight's growth trajectory. The company has a track record of successfully acquiring brands that complement its existing portfolio and offer synergies. These acquisitions provide access to new product categories, distribution channels, and customer segments. Recent acquisitions have been seamlessly integrated into Church & Dwight's operations, contributing to revenue growth and profitability.

Looking ahead, revenue growth projections and earnings estimates for Church & Dwight remain positive. Analysts project continued organic sales growth, driven by product innovation and market expansion. Earnings are expected to grow at a steady pace, supported by cost-saving initiatives and operating efficiencies. These projections reflect confidence in Church & Dwight's ability to execute its growth strategy and deliver value to shareholders.

Strategic initiatives and partnerships further enhance Church & Dwight's growth prospects. The company has been actively pursuing partnerships with retailers and e-commerce platforms to expand its distribution reach. These collaborations enable Church & Dwight to reach a broader customer base and capitalize on emerging trends in consumer behavior. Additionally, the company is investing in digital marketing and e-commerce capabilities to drive online sales growth.

Church & Dwight's competitive advantages also position it favorably for future growth. The company has a strong portfolio of well-known and trusted brands, which command significant market share. Its efficient supply chain and distribution network provide a cost advantage. Furthermore, Church & Dwight's experienced management team has a proven track record of driving growth and profitability. These competitive advantages provide a solid foundation for continued success.

Here's a summary of potential growth drivers:

• Product Innovations: Continuous investment in R&D to launch new and improved products.
• Market Expansions: Strategic expansion into emerging markets and new geographic regions.
• Acquisitions: Acquiring complementary brands to expand product categories and market reach.
• Strategic Partnerships: Collaborating with retailers and e-commerce platforms to broaden distribution.
• Digital Investments: Enhancing digital marketing and e-commerce capabilities.

Considering these factors, Church & Dwight is well-positioned to capitalize on future growth opportunities and deliver long-term value to its investors.