Church & Dwight Co Inc (CHD, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $102.1 and a daily gain of 0.77%, despite a slight dip of -4.15% over the past three months, the company shows significant potential for future growth. This potential is further underscored by its impressive GF Score of 92 out of 100, indicating a high likelihood of outperforming the market.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, which evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently, reflecting their varied impact on stock performance. Church & Dwight Co Inc excels in several of these areas, with high ranks in profitability (9/10), growth (8/10), and momentum (10/10), while maintaining solid scores in financial strength (7/10) and GF Value (6/10).
Understanding Church & Dwight Co Inc's Business
Church & Dwight Co Inc, with a market cap of $24.99 billion and annual sales of $5.998 billion, is a leading global producer of baking soda. The company's portfolio extends beyond this staple to include a variety of household and personal care products. Brands like Arm & Hammer, OxiClean, and WaterPik contribute to approximately 70% of its annual sales and profits, primarily in the U.S. market. This diversified product mix and strong brand presence underscore the company's robust operational framework.
Financial Strength and Stability
Church & Dwight Co Inc's financial resilience is evident through its impressive Interest Coverage ratio of 10.88 and an Altman Z-Score of 5.55, indicating low risk of financial distress. Additionally, its strategic debt management is reflected in a healthy Debt-to-Revenue ratio of 0.37, showcasing a prudent approach to leveraging and capital management.
Profitability and Growth Prospects
The company's Profitability Rank is notably high, supported by a solid Piotroski F-Score which indicates effective operational efficiency. Growth metrics are equally promising, with a 3-Year Revenue Growth Rate of 6.9%, despite being slightly below the industry median. The consistent increase in EBITDA over recent years highlights Church & Dwight Co Inc's capacity for sustained growth and profitability.
Conclusion
Considering Church & Dwight Co Inc's robust financial strength, impressive profitability, and solid growth metrics, the GF Score effectively highlights the company's strong position for potential market outperformance. Investors looking for reliable growth and stability in their portfolios would do well to consider Church & Dwight Co Inc as a promising candidate.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
