Church & Dwight Co., Inc. (CHD)
Valuation Overview•Is Church & Dwight Co., Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 70/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
CHD demonstrates strong business quality with robust profitability and healthy margins. This is paired with a moderately leveraged but stable balance sheet.
The company exhibits steady, low-single-digit revenue growth paired with highly explosive earnings growth (21.6% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 17.3% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.5B | +1.6% | +4.9% | +4.8% | +6.2% | |
| EBITDA | $291.0M | — | +17.5% | — | — | |
| Net Income | $216.3M | +25.9% | +21.2% | — | +6.0% | |
| EPS (Diluted) | $0.91 | +27.4% | +21.6% | -0.6% | +7.0% | |
| Free Cash Flow | $142.9M | +11.9% | +15.7% | +4.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 45.1% | 44.8% | 44.0% | 44.6% |
| Operating Margin | 17.3% | 16.2% | 16.1% | 18.0% |
| Net Margin | 11.8% | 11.4% | 11.6% | 13.5% |
| FCF Margin | 17.2% | 15.8% | 15.5% | 16.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.93 | $0.95 | +2.0% | ||
| Q1'26 | $0.84 | $0.86 | +2.9% | ||
| Q4'25 | $0.74 | $0.81 | +10.1% | ||
| Q3'25 | $0.86 | $0.94 | +9.7% | ||
| Q2'25 | $0.90 | $0.91 | +1.6% | ||
| Q1'25 | $0.77 | $0.77 | +0.0% | ||
| Q4'24 | $0.68 | $0.79 | +15.8% | ||
| Q3'24 | $0.84 | $0.93 | +10.7% |
Total return is +1.0% (1Y), lagging the benchmark by -24.0%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +16.5% | +7.2% | — |
| 1Y | +1.0% | -24.0% | +1.3% |
| 3YCAGR | +1.6% | -17.3% | +3.7% |
| 5YCAGR | +3.9% | -8.7% | +6.7% |
| 10YCAGR | +7.8% | -5.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Church & Dwight Co., Inc. (CHD) valuation, health, and returns.
Church & Dwight Co., Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. overvalued (implying -15.5% downside from DCF intrinsic value of $80.77)
Church & Dwight Co., Inc. has multiple valuation anchors: DCF Intrinsic Value: $80.77 | Peer Relative Fair Value: $87.13 | Wall Street Analyst Target: $105.00 (implying +9.8% upside). A convergence of these signals offers higher conviction.
Church & Dwight Co., Inc. displays good financial health with a composite quality score of 70/100, supported by a Altman Z-Score of 4.5 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 13.9%.
Church & Dwight Co., Inc. pays a 1.2% dividend yield, covered by a 39% payout ratio with 29 years of growth, supplemented by a 4.0% buyback yield.
Church & Dwight Co., Inc.'s current growth trajectory is Decelerating. The company achieved +1.6% 1Y revenue growth and +27.4% 1Y EPS growth, compared to its 3Y revenue CAGR of +4.9%.
Wall Street consensus is Buy based on 34 analysts, beating EPS expectations in 83% of recent quarters with a 5-quarter streak. The consensus price target represents a +9.8% change from current levels.
Investment risks for Church & Dwight Co., Inc. include: -17.7% 1-year max drawdown. Volatility risk is characterized by a beta of -0.05x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.