Church & Dwight Co Inc /De/ (CHD) Stock Analysis and Metrics

Church & Dwight

NYSE: CHD

$97.64 ▲ +1.45 (+1.51%)

At close: Jul 24, 2026 · 4:04 PM UTC

Financial Ratios

Market Cap22.75 Bn

P/E24.31

P/S407.73

Div. Yield0.01

ROIC (Qtr)0.02

Total Debt (Qtr)2.40 Bn

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About

Church & Dwight Co., Inc. was founded in 1846 and incorporated in Delaware in 1925. The company develops manufactures and markets a broad range of consumer household and personal care products as well as specialty products focused on animal and food production chemicals and cleaners. Its portfolio includes well known brands such as ARM & HAMMER baking soda OXICLEAN stain removers BATISTE dry shampoo WATERPIK water flossers THERABREATH oral care HERO acne treatment TOUCHLAND hand sanitizer TROJAN condoms FIRST RESPONSE pregnancy tests NAIR depilatories ORAJEL oral analgesic XTRA laundry detergent and ZICAM cold relief products.

Revenue is generated primarily through the sale of consumer products via a broad distribution network that includes supermarkets mass merchandisers wholesale clubs drugstores convenience stores home stores dollar and discount stores pet and specialty stores and ecommerce channels. The company also sells specialty products to industrial customers livestock producers and through distributors. Sales to retail outlets generate the majority of revenue while the Specialty Products Division contributes a smaller portion from business to business transactions.

The company operates through the following segments Consumer Domestic Consumer International and Specialty Products Division (SPD).

• The Consumer Domestic segment encompasses household and personal care product groups and includes the company’s seven power brands as well as other household and personal care items. Household products cover laundry detergents fabric softener sheets cat litter and cleaning solutions while personal care offerings include oral care antiperspirants deodorants condoms hair removal products and hand sanitizers. This segment generated approximately 54 percent of its sales from household products and 46 percent from personal care products in 2025 representing about 41 percent and 36 percent of consolidated net sales respectively.

• The Consumer International segment markets personal care household and over the counter products in international subsidiary markets including Australia Canada France Germany Japan Mexico China and the United Kingdom and exports to over 100 countries through a global distributors network. It distributes many of the U. S power brands such as ARM & HAMMER BATISTE HERO THERABREATH OXICLEAN TOUCHLAND and WATERPIK and also markets unique brands like STERIMAR FEMFRESH CURASH GRAVOL and ANUSOL in various regions. This segment contributed roughly 18 percent of consolidated net sales in 2025.

• The Specialty Products Division focuses on sales to businesses and is organized into three product areas Animal Nutrition Specialty Chemicals and Commercial & Professional. Animal nutrition provides feed additives such as sodium bicarbonate based products protein and amino acid supplements and probiotics for dairy cattle poultry and swine. Specialty chemicals involves the production and sale of sodium bicarbonate in various grades for industrial applications including leavening antacid fire extinguisher and swimming pool uses. Commercial & Professional supplies cleaning and deodorizing products for use in offices hotels restaurants and other facilities. This segment accounted for approximately five percent of consolidated net sales in 2025.

The company competes in highly innovative household and personal care categories where success depends on product innovation performance brand recognition price value and consumer benefits. Principal competitors in the consumer segments include Procter & Gamble Colgate Palmolive Kimberly Clark Johnson & Johnson Reckitt Benckiser Unilever and others. In the specialty products arena the company faces competition from Cargill Lallemand Solvay and other chemical and agricultural suppliers. Competitive advantages stem from a strong portfolio of well known brands a diversified product mix extensive distribution capabilities and a focus on research and development that enables frequent new product introductions.

The company serves a diverse customer base that includes individual consumers purchasing through retail chains as well as industrial and agricultural clients for its specialty products. Its largest single customer is Walmart which accounted for approximately 23 percent of consolidated net sales in each of the years 2023 2024 and 2025. No other customer represented ten percent or more of total sales during that period. In addition to Walmart the company sells products through supermarkets mass merchandisers drugstores convenience stores and ecommerce platforms while its Specialty Products Division deals directly with manufacturers farms and distributors.

Investment Thesis

▲ Bull case

Church & Dwight achieved distribution gains that ranked number one across all consumer packaged goods companies on a year over year basis, a metric that management noted is only now beginning to impact sales. This tailwind is not limited to a few brands but spans laundry litter personal care and household categories, indicating a broad based improvement in shelf presence. The company attributes these gains to its relentless innovation pipeline and strong commercial execution, suggesting that the benefit is structural rather than a one off inventory shift. As distribution expands further the firm can convert shelf space into higher consumption and market share without relying on promotional spending, which supports durable volume growth in a pressured consumer environment.
Management highlighted that new product launches slated for 2026 are expected to account for approximately half of the company’s organic sales growth, a contribution that exceeds historical averages. Recent innovations such as ARM & HAMMER Baking Soda Fresh laundry detergent with ten times the baking soda content and Hero facial cleansers targeting acne prone skin have already received strong consumer ratings and early adoption signals. These launches leverage core brand equity while entering adjacent categories, which can create cross selling opportunities and expand the total addressable market. By focusing on innovation that delivers tangible consumer benefits the company can sustain volume growth and share gains even when macroeconomic headwinds limit pricing flexibility.
The international division delivered organic sales growth of 3.7% in the first quarter, driven by TheraBreath Hero and Batiste brands while being partially offset by softer performance in the Middle East region. Management noted that the team continues to pursue acquisition targets both domestically and abroad with a focus on fast moving consumable products that fit the company’s criteria. This pipeline of potential deals could provide incremental scale and new geographic footholds without significant integration risk given the company’s experience with recent purchases such as Touchland and Toppik. Successful execution of these initiatives would add to the top line and enhance the profitability profile through favorable mix from higher margin acquisitions.
Adjusted gross margin increased 130 basis points year over year to 46.4% in the first quarter, supported by productivity programs higher margin acquisitions and favorable mix from portfolio actions. Management reiterated its full year outlook for gross margin expansion of approximately 100 basis points, noting that productivity initiatives will continue to offset inflation tariff and commodity pressures. The company’s three year pipeline of productivity projects allows it to accelerate or decelerate efforts based on cost trends, creating a flexible cost structure that can protect margins. This ability to generate margin improvement through operational excellence rather than price increases provides a buffer against consumer resistance to higher prices in a value focused environment.

Church & Dwight achieved distribution gains that ranked number one across all consumer packaged goods companies on a year over year basis, a metric that management noted is only now beginning to impact sales. This tailwind is not limited to a few brands but spans laundry litter personal care and household categories, indicating a broad based improvement in shelf presence. The company attributes these gains to its relentless innovation pipeline and strong commercial execution, suggesting that the benefit is structural rather than a one off inventory shift. As distribution expands further the firm can convert shelf space into higher consumption and market share without relying on promotional spending, which supports durable volume growth in a pressured consumer environment.
Management highlighted that new product launches slated for 2026 are expected to account for approximately half of the company’s organic sales growth, a contribution that exceeds historical averages. Recent innovations such as ARM & HAMMER Baking Soda Fresh laundry detergent with ten times the baking soda content and Hero facial cleansers targeting acne prone skin have already received strong consumer ratings and early adoption signals. These launches leverage core brand equity while entering adjacent categories, which can create cross selling opportunities and expand the total addressable market. By focusing on innovation that delivers tangible consumer benefits the company can sustain volume growth and share gains even when macroeconomic headwinds limit pricing flexibility.
The international division delivered organic sales growth of 3.7% in the first quarter, driven by TheraBreath Hero and Batiste brands while being partially offset by softer performance in the Middle East region. Management noted that the team continues to pursue acquisition targets both domestically and abroad with a focus on fast moving consumable products that fit the company’s criteria. This pipeline of potential deals could provide incremental scale and new geographic footholds without significant integration risk given the company’s experience with recent purchases such as Touchland and Toppik. Successful execution of these initiatives would add to the top line and enhance the profitability profile through favorable mix from higher margin acquisitions.
Adjusted gross margin increased 130 basis points year over year to 46.4% in the first quarter, supported by productivity programs higher margin acquisitions and favorable mix from portfolio actions. Management reiterated its full year outlook for gross margin expansion of approximately 100 basis points, noting that productivity initiatives will continue to offset inflation tariff and commodity pressures. The company’s three year pipeline of productivity projects allows it to accelerate or decelerate efforts based on cost trends, creating a flexible cost structure that can protect margins. This ability to generate margin improvement through operational excellence rather than price increases provides a buffer against consumer resistance to higher prices in a value focused environment.

▼ Bear case

The company disclosed that the ongoing conflict in the Middle East is creating an estimated twenty five to thirty million dollars of incremental inflation pressure on commodities and transportation costs for the full year, a figure that management acknowledged could grow if the situation worsens. While management expressed confidence that current productivity initiatives can offset this headwind, it also admitted that should the cost pressure double or triple the firm would need to consider pricing actions, which it views as undesirable given consumer price sensitivity. This reliance on operational efficiencies to absorb cost inflation introduces risk if productivity gains slow or if unexpected cost spikes occur, potentially compressing margins. Investors may be underestimating the vulnerability of the earnings outlook to prolonged geopolitical tension and its impact on input costs.
Adjusted selling general and administrative expense rose 110 basis points year over year to 16.3% of net sales, driven largely by the inclusion of Touchland SG&A and related amortization expense. Management noted that SG&A will remain higher than the prior year reflecting the impact of the Touchland acquisition in the first half of the year and focused growth investments. The amortization of intangible assets associated with recent purchases adds a fixed cost component that does not scale with revenue, potentially weighing on profitability until the assets are fully amortized. If the expected synergies from the Touchland or Toppik deals fail to materialize, the higher expense base could hinder the company’s ability to deliver the projected adjusted EPS growth of five to eight%.
Management acknowledged that Toppik consumption measured through tracked channels showed a twenty% decline year over year, while overall consumption including untracked channels rose twelve to thirteen%, indicating a disparity between reported sales and underlying demand. The company attributed part of the weakness to strong holiday gift set sales in the prior year period and to club channel dynamics, suggesting that growth may be uneven across distribution avenues. While executives expressed confidence in achieving double digit full year growth for Toppik, they also noted that much of the planned advertising and partnership activity is weighted toward the second half of the year, leaving near term performance dependent on execution. If the anticipated marketing push does not generate sufficient traction or if club channel headwinds persist, Toppik could become a drag on overall organic growth rather than a contributor.
As of March 31 2026 the company reported total debt of approximately two billion two hundred million dollars alongside cash on hand of five hundred three point four million dollars, resulting in a leverage profile that could limit financial flexibility if operating cash flow were to decline. While cash from operations remained strong at one hundred seventy four point eight million in the quarter, management noted that higher working capital to support growth partially offset cash earnings, indicating that cash conversion may be sensitive to changes in inventory or receivables. The firm also disclosed that foreign exchange movements contributed to a modest benefit in the quarter but could reverse if the dollar strengthens, affecting reported sales and earnings. A sustained period of weaker cash flow combined with elevated debt service could constrain the ability to pursue acquisitions or return capital to shareholders.

The company disclosed that the ongoing conflict in the Middle East is creating an estimated twenty five to thirty million dollars of incremental inflation pressure on commodities and transportation costs for the full year, a figure that management acknowledged could grow if the situation worsens. While management expressed confidence that current productivity initiatives can offset this headwind, it also admitted that should the cost pressure double or triple the firm would need to consider pricing actions, which it views as undesirable given consumer price sensitivity. This reliance on operational efficiencies to absorb cost inflation introduces risk if productivity gains slow or if unexpected cost spikes occur, potentially compressing margins. Investors may be underestimating the vulnerability of the earnings outlook to prolonged geopolitical tension and its impact on input costs.
Adjusted selling general and administrative expense rose 110 basis points year over year to 16.3% of net sales, driven largely by the inclusion of Touchland SG&A and related amortization expense. Management noted that SG&A will remain higher than the prior year reflecting the impact of the Touchland acquisition in the first half of the year and focused growth investments. The amortization of intangible assets associated with recent purchases adds a fixed cost component that does not scale with revenue, potentially weighing on profitability until the assets are fully amortized. If the expected synergies from the Touchland or Toppik deals fail to materialize, the higher expense base could hinder the company’s ability to deliver the projected adjusted EPS growth of five to eight%.
Management acknowledged that Toppik consumption measured through tracked channels showed a twenty% decline year over year, while overall consumption including untracked channels rose twelve to thirteen%, indicating a disparity between reported sales and underlying demand. The company attributed part of the weakness to strong holiday gift set sales in the prior year period and to club channel dynamics, suggesting that growth may be uneven across distribution avenues. While executives expressed confidence in achieving double digit full year growth for Toppik, they also noted that much of the planned advertising and partnership activity is weighted toward the second half of the year, leaving near term performance dependent on execution. If the anticipated marketing push does not generate sufficient traction or if club channel headwinds persist, Toppik could become a drag on overall organic growth rather than a contributor.
As of March 31 2026 the company reported total debt of approximately two billion two hundred million dollars alongside cash on hand of five hundred three point four million dollars, resulting in a leverage profile that could limit financial flexibility if operating cash flow were to decline. While cash from operations remained strong at one hundred seventy four point eight million in the quarter, management noted that higher working capital to support growth partially offset cash earnings, indicating that cash conversion may be sensitive to changes in inventory or receivables. The firm also disclosed that foreign exchange movements contributed to a modest benefit in the quarter but could reverse if the dollar strengthens, affecting reported sales and earnings. A sustained period of weaker cash flow combined with elevated debt service could constrain the ability to pursue acquisitions or return capital to shareholders.

Segments Breakdown of Revenue (2025)

Peer Comparison

Companies in the Household & Personal Products

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	PG	PROCTER & GAMBLE Co	341.94 Bn	20.49	3.94	37.03 Bn
2	UL	Unilever Plc	131.50 Bn	27.72	3.97	32.92 Bn
3	CL	Colgate Palmolive Co	72.27 Bn	32.63	3.48	7.94 Bn
4	KVUE	Kenvue Inc.	36.23 Bn	22.34	2.37	8.66 Bn
5	KMB	Kimberly Clark Corp	35.62 Bn	89.49	2.15	7.08 Bn
6	EL	Estee Lauder Companies Inc	28.99 Bn	-151.78	1.95	7.31 Bn
7	CHD	Church & Dwight Co Inc /De/	22.75 Bn	24.31	407.73	2.40 Bn
8	CLX	Clorox Co /De/	12.26 Bn	14.78	1.81	2.49 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

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