Church & Dwight Company (CHD) has a market cap of $12.2 billion. It fell 0.71% to close at $47.25 per share on November 2, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.2%, 2.2%, and 12.6%, respectively, on the same day. CHD is trading 0.67% below its 20-day moving average, 1.7% below its 50-day moving average, and 0.19% below its 200-day moving average.
Related ETF and peers
The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 2.7% of its holdings in Church & Dwight. The ETF tracks an equal-weighted index of large-cap US consumer staples stocks drawn from the S&P 500. The YTD price movement of RHS was 4.0% on November 2.
The market caps of Church & Dwight’s competitors are as follows:
CHD declared dividend
Church & Dwight declared a regular quarterly dividend of $0.18 per share on its common stock. The dividend will be paid on December 1, 2016, to shareholders of record at the close of business on November 16, 2016.
Performance of Church & Dwight in 2Q16
Church & Dwight reported 2Q16 net sales of $877.4 million, a rise of 3.6% compared to net sales of $847.1 million in 2Q15. Sales of household products and personal care products rose 1.8% and 9.9%, respectively, in 2Q16 compared to 2Q15. The company’s gross profit margin and income from operations rose 5.6% and 23.2%, respectively, in 2Q16 compared to the prior-year period.
Its net income and EPS (earnings per share) rose to $111.6 million and $0.85, respectively, in 2Q16 compared to $73.7 million and $0.55, respectively, in 2Q15.
CHD’s cash and cash equivalents fell 36.1%, and its inventories rose 5.9% in 2Q16 compared to 4Q15. Its current ratio fell to 0.88x, and its debt-to-equity ratio rose to 1.14x in 2Q16 compared to a current ratio and a debt-to-equity ratio of 1.0x and 1.10x, respectively, in 4Q15.
Church & Dwight has made the following projections for fiscal 2016:
- organic sales growth in the range of ~3% to 4% due to the introduction of new products in its core business
- gross margin of ~1.1% due to lower commodity costs and greater distribution efficiencies
- operating margin expansion of ~0.60%
- adjusted EPS growth in the range of 8% to 9%
The company has made the following projections for fiscal 3Q16:
- organic sales growth in the range of ~1% to 2%
- reported EPS of $0.92
In the next article, we’ll discuss Skechers USA (SKX).