NYSE:CHD
CHURCH & DWIGHT CO INC /DE/
A premier household care company delivering essential cleaning and laundry solutions with a robust portfolio of trusted global brands.
Key Metrics
Investment Thesis
Bull Case
Church & Dwight offers attractive defensive characteristics with stable, recurring demand for essential household products that insulates it from economic cycles. The company's ability to generate robust operating cash flow of over $1B provides ample liquidity for strategic M&A and capital return programs like share buybacks. Long-term growth is supported by a proven track record of successful brand innovation and expansion into emerging markets.
Bear Case
High levels of goodwill at $2.63B and total debt obligations could pressure returns if acquisitions underperform or interest rates remain elevated. The company faces margin headwinds from inflationary pressures on input costs which may limit pricing power in a saturated market. Additionally, reliance on traditional retail channels exposes the business to shifting consumer habits toward online shopping where private labels dominate.
About CHURCH & DWIGHT CO INC /DE/
Church & Dwight Co. Inc. is a leading global manufacturer of household care products, primarily serving North America, Europe, and Asia with iconic brands like Arm & Hammer, OxiClean, and Snuggle. The company leverages a diverse portfolio of consumer goods ranging from cleaning agents and air fresheners to laundry additives and personal care items. Its business model focuses on recurring demand for essential home maintenance solutions backed by strong brand loyalty.
Analysis
Management Discussion
The company delivered strong operational performance with net income reaching $736.8M, demonstrating resilience in a competitive retail environment. Cash flow from operations of $1.22B highlights effective working capital management, particularly with inventory decreasing by $56.1M and accounts receivable growing modestly. While significant cash was deployed for acquisitions totaling $656.0M and share repurchases of $900.0M, the firm maintained a healthy cash balance of $409.0M to fund future growth initiatives.
Industry Overview
The global household care industry is characterized by high brand loyalty and rapid innovation cycles driven by sustainability trends and digital marketing. Companies must continuously invest in R&D to maintain relevance as consumers seek eco-friendly and multi-functional products. Market consolidation is common, creating opportunities for well-capitalized players with broad distribution networks like Church & Dwight.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.38B | $5.87B | $6.11B | $6.20B |
| Cost of Revenue | $3.13B | $3.28B | $3.32B | $3.43B |
| Gross Profit | $2.25B | $2.59B | $2.79B | $2.77B |
| Operating Expenses | $1.65B | $1.53B | $1.98B | $1.70B |
| Operating Income | $597.8M | $1.06B | $807.1M | $1.08B |
| R&D | $110.0M | $122.4M | $139.7M | $145.6M |
| G&A | $1.12B | $889.8M | $927.8M | $988.3M |
| Stock-Based Comp | — | — | $59.2M | $58.0M |
| D&A | — | — | $239.1M | $247.4M |
| Depreciation | — | — | $83.2M | $89.7M |
| Amortization | — | — | $121.5M | $121.1M |
| Other OpEx | $425.2M | $518.9M | $915.5M | $563.3M |
| Non-Operating Income | $-74.5M | $-90.0M | $-50.8M | $-120.7M |
| Interest Expense | $89.6M | $110.9M | $95.0M | $95.2M |
| Pre-Tax Income | $523.3M | $967.4M | $756.3M | $956.9M |
| Income Tax | $109.4M | $211.8M | $171.0M | $220.1M |
| Continuing Ops | $413.9M | $755.6M | $585.3M | $736.8M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $413.9M | $755.6M | $585.3M | $736.8M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $413.9M | $755.6M | $585.3M | $736.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.40B | $1.53B | $2.24B | $1.60B |
| Cash & Equivalents | $270.3M | $344.5M | $964.1M | $409.0M |
| Accounts Receivable | $422.0M | $526.9M | $600.8M | $593.4M |
| Inventory | $646.6M | $613.3M | $613.3M | $534.8M |
| Other Current Assets | $57.0M | $45.0M | $62.4M | $59.8M |
| Long-Term Assets | $6.95B | $7.04B | $6.64B | $7.32B |
| PP&E (Net) | $761.1M | $927.7M | $931.7M | $822.8M |
| Intangibles | $3.43B | $3.30B | $2.89B | $3.51B |
| Goodwill | $2.43B | $2.43B | $2.43B | $2.63B |
| Operating Leases | $162.6M | $186.0M | $182.3M | $166.0M |
| Other LT Assets | $167.6M | $192.0M | $206.8M | $187.6M |
| Total Assets | $8.35B | $8.57B | $8.88B | $8.91B |
| Current Liabilities | $1.18B | $1.42B | $1.32B | $1.50B |
| Accounts Payable | — | $630.6M | $705.1M | $732.4M |
| Current Debt | $0 | $199.9M | $0 | — |
| Current Leases | $21.9M | $24.7M | $32.4M | $23.9M |
| Taxes Payable | $7.0M | $7.2M | $5.3M | $3.4M |
| Other Current Liab | $1.15B | $559.6M | $573.1M | $738.0M |
| Long-Term Liabilities | $3.67B | $3.29B | $3.21B | $3.41B |
| Long-Term Debt | $2.60B | $2.20B | $2.20B | $2.21B |
| LT Operating Leases | $151.9M | $174.9M | $168.5M | $153.0M |
| Other LT Liab | $849.9M | $914.7M | $833.3M | $1.05B |
| Total Liabilities | $4.86B | $4.71B | $4.52B | $4.91B |
| Shareholders' Equity | $3.49B | $3.86B | $4.36B | $4.00B |
| Retained Earnings | $5.52B | $6.01B | $6.32B | $6.77B |
| AOCI | $-29.3M | $-27.2M | $-30.9M | $-19.9M |
| Treasury Stock | $2.67B | $2.88B | $2.78B | $3.66B |
| Total L&E | $8.35B | $8.57B | $8.88B | $8.91B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | — | — | $585.3M | $736.8M |
| Non-Cash Adjustments | — | — | $381.9M | $625.4M |
| Working Capital Changes | — | — | $189.0M | $-146.8M |
| Cash from Operations | — | — | $1.16B | $1.22B |
| Capital Expenditures | — | — | $179.8M | $122.4M |
| Cash from Investing | — | — | $-183.3M | $-616.9M |
| Debt Issuances | — | — | $0 | — |
| Debt Repayments | $100.0M | $100.0M | $204.6M | $0 |
| Share Buybacks | — | — | $0 | $900.0M |
| Dividends Paid | — | — | $277.0M | $287.2M |
| Cash from Financing | — | — | $-343.4M | $-1.16B |
| FX Effect | $0 | $0 | $-9.9M | $8.8M |
| Net Change in Cash | — | — | $619.6M | $-555.1M |
| Beginning Cash | — | — | $344.5M | $964.1M |
| Ending Cash | — | — | $964.1M | $409.0M |
Frequently Asked Questions
How does CHURCH & DWIGHT CO INC /DE/ make money?
The company's revenue is driven by four main segments: Air Care (air fresheners, dehumidifiers), Laundry Additives (detergents, fabric softeners, stain removers), Cleaning Products (kitchen and bath cleaners, scouring agents), and Personal Care (shampoo, skin care, foot care). These segments collectively generated $6.20B in revenue for the latest fiscal year, reflecting a steady expansion across essential home categories.
What are the main risks for CHD?
Investors should consider the risk of rising raw material and logistics costs that could compress margins despite price increases. There is also exposure to consumer spending volatility during economic downturns, which may impact discretionary household purchases. Additionally, intense competition from private label stores and emerging direct-to-consumer brands poses a threat to market share. Finally, supply chain disruptions or regulatory changes regarding chemical ingredients could impact production capabilities and compliance costs.
What is CHD's competitive advantage?
First, the company possesses deep distribution reach and extensive retail relationships that secure premium shelf space alongside mass-market retailers. Second, its portfolio of iconic brands with decades of consumer trust creates high switching costs and consistent recurring revenue streams. Third, operational efficiency is enhanced by advanced manufacturing technologies and a strategic focus on innovation in sustainable product formulations.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.