선택적 제품 분석
허용하는 경우 개인정보 보호를 고려한 제한적 분석을 사용해 어떤 리서치 여정이 효과적인지 파악합니다. 광고 추적기나 세션 녹화는 사용하지 않습니다. 환경설정에서 이 선택을 변경할 수 있습니다. 자세한 내용은 개인정보 처리방침.
Accelerated international distribution expansion and household penetration gains across high-margin personal care acquisitions.
Scale competitors Colgate-Palmolive and Procter & Gamble escalate promotional affordability discounting in laundry and oral care while unrecovered transportation and Middle East conflict cost premiums exceed $30 million.
We assign Church & Dwight Co. Inc. a Reduce rating as the shares at USD 97.90 on October 8, 2026 trade at a 21.92% premium to our Fair value of USD 80.30, presenting an implied return of -17.98% that fails to justify current valuation multiples amid rising competitive promotional intensity and domestic laundry volume deceleration.45
We assign a Reduce rating to Church & Dwight Co. Inc.. For an ordinary equity investor, this recommendation indicates that capital is poorly compensated at prevailing price levels, and existing shareholders should trim exposure or reallocate into more defensively valued consumer staple alternatives. Although Church & Dwight operates a disciplined business model with resilient brand equity and reliable cash generation, current market pricing reflects operational perfection, leaving negative expected risk-adjusted returns.
As of October 8, 2026, Church & Dwight shares trade at USD 97.90. This valuation stands at a 21.92% premium to our estimate of USD 80.30 and exceeds our ceiling of USD 88.70. At USD 97.90, the implied return to Fair value is -17.98%, and even under our most constructive scenario, the share price remains 10.37% above Potential value. This pricing creates an unfavorable asymmetric risk profile where downside multiple derating substantially exceeds incremental operational upside.
The principal risk that threatens our baseline valuation is an escalating promotional affordability conflict initiated by larger peers Colgate-Palmolive and Procter & Gamble. If scale competitors accelerate trade discounting and promotional allowances across domestic laundry and oral care categories, Church & Dwight would be forced to increase defensive promotional spending while absorbing $30 million in transitory freight and Middle East conflict cost premiums. In this failure mode, operating margins would compress below 14.5% against the FY2025 baseline EBIT margin of 17.37%, stalling adjusted EPS growth and triggering multiple derating toward mature peer benchmarks.57
The primary mechanism that could enable Church & Dwight to approach Potential value of USD 88.70 is accelerated distribution expansion in high-margin specialty acquisitions alongside international scaling. TheraBreath mouthwash consumption expanded over 20% in Q2 2026, capturing a 25% market share while household penetration remains low at 14% compared to 65% for the broader oral care category. If management successfully leverages this runway to extend TheraBreath into toothpaste and sustains high-single-digit international growth beyond its recent 9% rate, organic sales growth could exceed 5.0% and push gross margin expansion beyond the guided 100 to 120 basis points, lifting operating cash flows past the guided $1.18 billion.5
The ARM & HAMMER trademark anchors the Consumer Domestic business ($4,774.8M revenue in FY2025), providing an enduring value-tier presence across baking soda, litter, and laundry.8
Acquired franchises provide robust multi-year growth runways, led by TheraBreath with over 20% consumption growth in Q2 2026 and only 14% household penetration versus 65% for the category.5
Capital expenditures near 2% of sales ($122.4M in FY2025) convert operating cash flow ($1,215.4M in FY2025) into consistent dividend growth and accretive bolt-on M&A.7
Reduce: Church & Dwight trades at an unjustified 21.92% premium to its Fair value of USD 80.30 on October 8, 2026, offering an implied return of -17.98% that leaves investors exposed to multiple compression as peer promotional investments and mature laundry demand drag on earnings momentum.4
Church & Dwight Co. Inc. develops, manufactures, and markets a diversified portfolio of household essentials, personal care items, and specialty chemical products. The company operates primarily through three business segments: Consumer Domestic, Consumer International, and Specialty Products. The business serves mass merchandisers, wholesale clubs, supermarkets, drugstores, and e-commerce platforms across North America and key international markets.
The Consumer Domestic division is the core business engine, generating $4,774.8M or 76.97% of consolidated sales and $920.8M in segment operating income in FY2025. Its offerings are anchored by the flagship ARM & HAMMER trademark across baking soda, cat litter, and laundry detergents, alongside acquired fast-growing brands including TheraBreath oral rinses and Hero acne treatments. In FY2026, the company broadened its fabric care presence through the bolt-on acquisition of Miss Mouth's stain removers.
The Consumer International division contributed $1,129.4M in revenue and $116.2M in operating income in FY2025, distributing personal care and household brands across Europe, Asia, and Latin America. The Specialty Products Division delivered $299.0M in revenue and $40.6M in operating profit in FY2025, providing animal productivity feeds and specialty carbonates to industrial and agricultural customers. Across all segments, consolidated FY2025 revenue totaled $6,203.2M with operating income of $1,077.6M.
The stress test evaluates Church & Dwight under coincident competitive, operational, and macroeconomic pressures. Under this scenario, well-capitalized consumer staples peers escalate promotional affordability initiatives, while persistent geopolitical freight inflation exceeds the guided $30M baseline. Slower domestic consumer spending limits the pass-through of cost increases, causing ARM & HAMMER laundry volume to contract and capping acquired brand expansion. Operating margins compress from the FY2025 baseline of 17.37% toward 14.5%, driving an estimated fair value contraction of 22.5%. In tandem, terminal valuation multiples compress from the 21.0x baseline toward the 16.8x peer level, pulling intrinsic equity valuation toward the enterprise DCF bear valuation bound of $34.70. This highlights the sensitivity of CHD's October 8, 2026 share price of $97.90 to multiple compression and domestic consumer volume deceleration.
Under the Bear scenario, well-capitalized competitors intensify promotional affordability campaigns in laundry and oral care, forcing Church & Dwight into defensive discounting and elevated trade allowances. Concurrently, unhedged Middle East transportation premiums and commodity cost pressures exceed guided expectations, eroding gross margins and stalling earnings growth. Domestic volume growth decelerates as consumer spending contracts, triggering valuation multiple derating toward mature peer averages.
Aggressive affordability initiatives by scale peers CL (operating margin 20.97%) and PG (operating margin 22.09%) force CHD to increase promotional discounts while Middle East conflict transportation costs exceed the guided $30M headwind, compressing operating margin below 14.5% against FY2025 baseline EBIT margin of 17.37%.357
투자 논리를 약화시킬 수 있는 다섯 가지 변화입니다.
Inability to defend product pricing or offset commodity and freight inflation ($30M headwind), forcing downward revision of operating margin assumptions.
현재:45.4% (Q2 2026)
다음이면 경고< 44.0%
Church & Dwight maintains a narrow economic moat underpinned by iconic brand intangibles and a cost-effective, hybrid distribution model. The company's core asset is the ARM & HAMMER trademark, which commands exceptional brand recognition and trusted value positioning across baking soda, fabric care, and cat litter. This domestic heritage is complemented by high-growth acquisitions such as TheraBreath and Hero Cosmetics, which provide entry into premium personal care. In Q2 2026, TheraBreath delivered over 20% consumption growth, lifting category market share to 25% with significant remaining runway given a 14% household penetration rate versus 65% for the broader oral care category.
However, CHD's moat is classified as narrow rather than wide due to structural competitive boundaries. The Consumer Domestic segment generates 76.97% of consolidated sales ($4,774.8M of $6,203.2M in FY2025), leaving the business heavily reliant on mature U.S. categories. In fabric care, consumption was flattish in Q2 2026 when promotional activities were skipped. Furthermore, larger peers such as Procter & Gamble (gross margin 50.87%) and Colgate-Palmolive (gross margin 60.43%) deploy larger marketing budgets, requiring CHD to maintain advertising at or above 11% of sales and bounding operating margin expansion.
The durability of the moat is further safeguarded by CHD's flexible manufacturing strategy. With FY2025 capital expenditures at $122.4M and guided FY2026 capex of approximately $130M, capex intensity remains near 2% of sales. This allows the firm to achieve free cash flow of $1,093.0M while avoiding heavy fixed-cost obligations. Consequently, CHD earns an ROIC of 12.99% that exceeds its computed WACC of 7.41%, but absence of high switching costs prevents assignment of a wide moat rating.
Church & Dwight generates a return on invested capital of 12.99%, creating economic value above its cost of capital (computed WACC of 7.41% and moderate cost of equity of 7.71%). Operating cash flow of $1,215.4M in FY2025 against net income of $736.8M confirms strong cash conversion (~1.65x), underpinning economic profit durability.27
Each lens answers a different valuation question. Only included lenses set Fair value; floors and diagnostics provide context.
The highlighted cell is Fair value when every assumption sits at its base level ($80.30). Each row and column shows what Fair value becomes when one assumption moves.
Free cash flow to the firm stays positive in the first projected year at $742.5M after modeled reinvestment of $101.3M, with terminal value at 79.5% of enterprise value. A sudden drop in free cash flow is not projected unless capital spending relative to revenue, reinvestment, or gross margin resets materially.
The Base scenario reflects the modal operating trajectory. Consumer Domestic anchors consolidated revenue with steady volume compounding in specialty personal care offsetting flattish volume trends in mature laundry categories. Management achieves guided gross margin expansion through continuous productivity and trade optimization, while holding brand marketing at guided levels relative to sales to defend shelf space against scale peer affordability campaigns. Cash flow conversion remains robust, supporting modest annual dividend increases and disciplined bolt-on acquisitions.
An earnings beat driven by market share expansion in premium personal care and successful productivity offsets would confirm operational resilience. However, because shares at $97.90 already trade well above Fair value $80.30 and offer an implied return of -18.0%, valuation multiples remain stretched. Reaching Potential value $88.70 would require sustained double-digit international acceleration and flawless domestic execution, so the house rating would move to Hold.
Meeting consensus expectations confirms steady volume compounding in fast-growing brands alongside flattish mature domestic categories. With operating profit and cash conversion tracking in line with house forecast schedules, the fundamental thesis remains intact, but the share price at $97.90 continues to trade at a substantial premium to Fair value $80.30.
An earnings miss resulting from peer promotional discounting in core laundry or unabsorbed freight premiums would falsify margin durability assumptions. Under this outcome, operating margin assumptions would require downward revision toward historical troughs, causing terminal valuation multiples to derate toward mature peer levels and widening the negative gap between $97.90 and Fair value $80.30.
Earnings quality remains high, characterized by strong cash flow conversion where cash flow from operations consistently exceeds net income. Free cash flow generation benefits from low capital expenditure intensity and disciplined working capital management. Revenue recognition is supported by steady sell-in and sell-through cadence across major retail partners, with inventory levels closely managed and absence of aggressive accruals or non-operating adjustments.
Post-earnings analyst estimate revisions have been modest and mixed across the forecast horizon. Near-term full-year adjusted earnings estimates saw fractional downward adjustments following transitory geopolitical freight and commodity cost disclosures, while medium-term revenue forecasts reflect steady volume compounding from acquired brands offset by tempered category growth expectations in mature laundry.
Measures management ability to offset freight and raw material inflation via productivity and trade optimization, directly determining operating margin progression.
Cash flow execution is a defining operational strength of Church & Dwight. In FY2025, operating cash flow reached $1,215.4M against GAAP net income of $736.8M, delivering an exceptional cash conversion ratio of ~1.65x. Free cash flow of $1,093.0M reflects minimal capital absorption, with maintenance capex estimated at $85.7M. For FY2026, management raised operating cash flow guidance to approximately $1.18B, which, after deducting guided capex of ~$130M, indicates free cash flow exceeding $1.04B, ensuring strong dividend coverage and funding internal reinvestment needs.5
Returns on capital remain structurally protected by power brands and low capital intensity, but substantial multiple expansion is limited given that current valuation (forward P/E of 23.36x) already prices in this spread.
CHD generates an ROIC of 12.99%, maintaining an economic spread of 558 basis points above its computed WACC of 7.41% and 528 basis points above its moderate cost of equity of 7.71%.
FY2025 operating cash flow reached $1,215.4M against net income of $736.8M, yielding of $1,093.0M after of $122.4M.
| 매출 | US$1,530,000,000 |
|---|---|
| 매출원가 | US$836,100,000 |
| 매출총이익 | US$693,900,000 |
| 영업비용 | US$417,500,000 |
| 영업이익 | US$276,400,000 |
| 영업외 항목 및 세금 | -US$73,600,000 |
| 순이익 | US$202,800,000 |
| 총자산 | US$8,912,400,000 |
|---|---|
| 현금 | US$409,000,000 |
| 유동자산 | US$1,597,000,000 |
| 총부채 | US$4,910,200,000 |
| 유동부채 | US$1,497,700,000 |
| 주주자본 | US$4,002,200,000 |
| 순이익 | US$736,800,000 |
|---|---|
| 영업 현금 유입 | US$1,215,400,000 |
| 감가상각비 | US$247,400,000 |
| 주식 기반 보상 | US$58,000,000 |
| 기타 영업 조정 | US$173,200,000 |
| 영업 현금흐름 | US$1,215,400,000 |
| 사용 가능 현금 | US$2,188,300,000 |
| 기초 현금 | US$964,100,000 |
| 환율 효과 | US$8,800,000 |
| 투자 현금 유출 | US$616,900,000 |
| 자본적 지출 | US$122,400,000 |
| 기타 투자 활동 | US$494,500,000 |
| 재무 현금 유출 | US$1,162,400,000 |
| 기말 현금 | US$409,000,000 |
| 투자 현금흐름 | -US$616,900,000 |
| 재무 현금흐름 | -US$1,162,400,000 |
출처: SEC EDGAR · 제출일 2026-02-12 · SEC EDGAR
| 영업 부문별 매출 | 매출 | 비중 | 전년 대비 |
|---|---|---|---|
| Consumer Domestic | US$47.7억 | 77% | 0.9% |
| Consumer International | US$11.3억 | 18.2% | 5.4% |
| Specialty Products Division | US$3억 | 4.8% | -1.4% |
2026-10-08 분석에 사용된 시점 재무 데이터입니다.
| 기간 | 매출 | EBITDA | 순이익 | 영업 현금흐름 | 잉여 현금흐름 | 자본적 지출 | 감가상각비 | 주식 기반 보상 | 자사주 매입 | 지급 배당금 | 순부채 발행 | 투자 현금흐름 | 재무 현금흐름 | 기초 현금 | 기말 현금 | 현금 및 투자자산 | 총부채 | 영업이익률 | ROIC | WACC | ROIC−WACC 스프레드 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2016-12-31 | US$34.9억 | US$8.4억 | US$4.6억 | US$6.6억 | US$6.1억 | US$4980만 | US$1.1억 | US$1600만 | US$4억 | US$1.8억 | — | -US$3.5억 | -US$4.4억 | — | US$1.9억 | US$1.9억 | US$11.2억 | 20.7% | — | 4.9% | — |
| 2017-12-31 | US$37.8억 | US$8.7억 | US$7.4억 | US$6.8억 | US$6.4억 | US$4500만 | US$1.3억 | US$1810만 | US$2억 | US$1.9억 | — | -US$13억 | US$7억 | US$1.9억 | US$2.8억 | US$2.8억 | US$21억 | 19.4% | — | 5.0% | — |
| 2018-12-31 | US$41.5억 | US$9.4억 | US$5.7억 | US$7.6억 | US$7억 | US$6040만 | US$1.4억 | US$2330만 | US$2억 | US$2.1억 | — | -US$1.1억 | -US$6.1억 | US$2.8억 | US$3.2억 | US$3.2억 | US$21.1억 | 19.1% | — | 4.6% | — |
| 2019-12-31 | US$43.6억 | US$10.2억 | US$6.2억 | US$8.6억 | US$7.9억 | US$7370만 | US$1.8억 | US$2080만 | US$2.5억 | US$2.2억 | — | -US$5.5억 | -US$4.7억 | US$3.2억 | US$1.6억 | US$1.6억 | US$18.1억 | 19.3% | — | 3.5% | — |
| 2020-12-31 | US$49억 | US$12.2억 | US$7.9억 | US$9.9억 | US$8.9억 | US$9890만 | US$1.9억 | US$2150만 | US$3억 | US$2.4억 | — | -US$6.1억 | -US$3.6억 | US$1.6억 | US$1.8억 | US$1.9억 | US$18.1억 | 21.0% | — | 2.9% | — |
| 2021-12-31 | US$51.9억 | US$13.1억 | US$8.3억 | US$9.9억 | US$8.8억 | US$1.2억 | US$2.2억 | US$2370만 | US$5억 | US$2.5억 | — | -US$6.8억 | -US$2.5억 | US$1.8억 | US$2.4억 | US$2.4억 | US$23.1억 | 20.8% | — | 3.4% | — |
| 2022-12-31 | US$53.8억 | US$8.3억 | US$4.1억 | US$8.9억 | US$7.1억 | US$1.8억 | US$2.2억 | US$3230만 | US$0 | US$2.6억 | US$1.2억 | -US$7.3억 | -US$1.2억 | US$2.4억 | US$2.7억 | US$2.7억 | US$26억 | 11.1% | — | 5.8% | — |
| 2023-12-31 | US$58.7억 | US$10.6억 | US$7.6억 | US$10.3억 | US$8.1억 | US$2.2억 | US$2.3억 | US$6360만 | US$3억 | US$2.7억 | -US$2.7억 | -US$2.3억 | -US$7.3억 | US$2.7억 | US$3.4억 | US$3.4억 | US$24억 | 18.0% | — | 6.1% | — |
| 2024-12-31 | US$61.1억 | US$10.9억 | US$5.9억 | US$11.6억 | US$9.8억 | US$1.8억 | US$2.4억 | US$5920만 | US$0 | US$2.8억 | -US$2.1억 | -US$1.8억 | -US$3.4억 | US$3.4억 | US$9.6억 | US$9.6억 | US$22억 | 13.2% | — | 7.0% | — |
| 2025-12-31 | US$62억 | US$13억 | US$7.4억 | US$12.2억 | US$10.9억 | US$1.2억 | US$2.5억 | US$5800만 | US$9억 | US$2.9억 | US$0 | -US$6.2억 | -US$11.6억 | US$9.6억 | US$4.1억 | US$4.1억 | US$22.1억 | 17.4% | — | 6.2% | — |
Church & Dwight Co. Inc. (CHD) trades at 23.4x forward earnings against a peer median of 20.7x. Its EV/EBITDA of 18.5x compares with a peer median of 15.1x. The comparison uses 4 peers: Kenvue Inc., The Estee Lauder Companies Inc., Colgate-Palmolive Company and The Procter & Gamble Company, as of 2026-10-08.
The consumer defensive industry exhibits disciplined capital intensity, evidenced by an industry capex-to-depreciation ratio of 1.07 and industry capex-to-revenue of 1.1%. Church & Dwight maintains an aligned capital profile with FY2025 capex of $122.4M on $6,203.2M revenue (1.97% of sales) and guided FY2026 capex of approximately $130M. Because comprehensive third-party supplier lead-time and industry utilization data are unavailable, the capital cycle view is demand-led and evidence-limited.57
Under a bull cycle, consumer flight to value during economic uncertainty accelerates ARM & HAMMER household market share gains, while rapid distribution expansion in TheraBreath (25% market share, 14% penetration) and international sales (up 9% in Q2 2026) drive consolidated organic growth toward 5%, enabling gross margin expansion beyond 120 bps.
Under a bear cycle, persistent promotional discounting by scale peers (PG, CL) investing in affordability limits pricing power, while unrecovered Middle East freight and input costs ($30M headwind) compress gross margins below 44.0%, stalling adjusted EPS growth.
Church & Dwight positions itself as a balanced provider of value essentials and premium fast-growing personal care. Its FY2025 operating margin of 17.37% sits below the industry operating margin benchmark of 18.8% and peer leaders Colgate-Palmolive (20.97%) and Procter & Gamble (22.09%). This creates headroom for productivity-driven margin expansion toward 17.80%, but exposes CHD to market share risk if peers accelerate affordability campaigns.37
Given that CHD trades at $97.90 against a synthesized Fair value of $80.30 (implied return of -17.98%), the risk-reward profile is skewed negatively. Under our Reduce rating, an underweight allocation of 0-1% is recommended for diversified equity portfolios. Existing holders should systematically trim positions into strength, while uninvested capital should remain on the sidelines until market price offers an adequate margin of safety.4
Risk management strategy dictates proactive exposure reduction given Church & Dwight's 21.9% valuation premium over Fair value of $80.30. Portfolio managers should enforce trailing stops at 5.0%, trim exposure on any tactical rally toward the 52-week high of $106.04, and maintain strict quarterly monitoring of gross margin and domestic volume metrics against established falsification thresholds.
With shares trading at USD 97.90 against our Fair value of USD 80.30 on October 8, 2026, the stock trades at a 21.92% premium and 23.36x forward earnings. The lack of any margin of safety and negative implied return of -17.98% make the risk/reward profile unattractive for disciplined value allocators.4
Church & Dwight delivers strong cash conversion ($1,215.4M operating cash flow in FY2025 and guided $1.18B in FY2026) with modest capital expenditure requirements (~2% of sales), securing the dividend payout. Existing income-oriented holders may maintain existing positions for dividend compounding, but new capital allocation should be avoided.57
Consolidated organic sales growth guided at 4% to 5% and mature laundry volume stagnation do not justify an elevated multiple of 23.36x forward earnings. With Batiste losing 1.4 share points in the U.S., multiple compression risks outweigh growth prospects.45
We recommend a Reduce rating on Church & Dwight Co. Inc. As of October 8, 2026, the stock trades at USD 97.90, representing a 21.92% premium to our Fair value estimate of USD 80.30 and an implied return of -17.98%. Current valuation multiples fail to compensate investors for rising promotional intensity and domestic category maturity.4
While execution across acquired brands TheraBreath and Hero remains solid, trading at 23.36x forward earnings leaves no cushion against aggressive affordability campaigns by Procter & Gamble and Colgate-Palmolive or unrecovered freight cost pressures. Investors should reduce position size into share price rallies.
Capture your own thesis, position size, and follow-up questions. Stays on this device, only you can see it.
The records this analysis drew on, as they stood when it was run.
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
CHD trades at a forward P/E of 23.36x versus peer median forward P/E of 20.74x and Kenvue at 14.26x. As organic growth slows due to mature laundry stagnation and Batiste share losses, valuation derates 20% from 21.0x to below 16.8x.45
Consumer Domestic generates 76.97% of consolidated sales ($4,774.8M of $6,203.2M). A domestic spending contraction combined with distribution saturation across TheraBreath and Hero slows 5-year CAGR by 500 bps below the modeled 3.5%-4.27% trajectory.178
Signals mature category volume stagnation in the core domestic segment ($4,774.8M in FY2025), demoting consolidated top-line growth assumptions.
현재:4.3% volume and 1.5% price/mix in Q2 2026
다음이면 경고< 1.0%
Breaches the capital-light operating model above guided capex of ~$130M, depressing free cash flow conversion.
현재:1.97% in FY2025 ($122.4M on $6,203.2M)
다음이면 경고> 3.5%
Aggressive peer promotional affordability initiatives force higher trade discounts while Middle East logistics premiums persist, severely impairing operating earnings power.
현재:17.37% in FY2025 ($1,077.6M EBIT on $6,203.2M sales)
다음이면 경고< 14.5%
Loss of competitive differentiation in specialty personal care to competitive entries from scale peers, weakening premium pricing power.
현재:2.0% consumption growth vs 5.5% category growth (-1.4 share points in Q2 2026)
다음이면 경고< 0.0% (negative consumption growth)
| medium |
| 12-36 months |
| Allocating growth capital toward fast-expanding acquisitions including TheraBreath oral care and Miss Mouth's stain remover while optimizing fabric care promotional timing.5 |
| Input Cost Inflation and Geopolitical Freight Disruptions | medium | 6-18 months | Productivity programs targeting 100 to 120 basis points of gross margin improvement to absorb the guided $30M Middle East conflict and logistics headwind.5 |
Under the moderate discount rate, US$14.43 comes from forecast-period earnings and US$68.99 from the long-term value, totaling US$83.42.
Project EPS through the explicit advantage period, fade growth as competition catches up, and discount the full stream at cost of equity.
Apply a terminal P/E to the dated forward EPS path, then discount that future share value back to the analysis date.
Convert the revenue and margin path into after-tax free cash flow, discount the annual per-share amounts and terminal value at WACC, then adjust for signed net debt per current share.
Discounted forecast-period cash flows (US$13.16) plus discounted terminal value (US$50.96) minus signed per current share (US$7.57) equals the US$56.55 lens value shown above. Negative net debt is , so subtracting it raises value.
Add depreciation to net income, subtract maintenance capex, divide by diluted shares, and apply a normalized valuation multiple.
Solve for the growth rate that makes the model value equal the report-date share price.
Under the Bull scenario, international consumer distribution expands rapidly across Europe and Latin America, while domestic market share gains in TheraBreath and Hero accelerate as household penetration closes the gap toward broader category averages. Manufacturing productivity programs and trade optimization deliver gross margin expansion surpassing guidance, lifting operating margins beyond historical averages and driving superior free cash flow compounding.
Consumer Domestic represents the majority of consolidated revenue; any volume slowdown directly compresses overall top-line compounding and cash conversion.
High-growth oral care brand represents a core driver of premium volume growth and domestic gross margin accretion.
Sustaining marketing spend is required to defend market share against aggressive peer affordability campaigns from scale competitors.
Capital efficiency underpins superior free cash flow conversion and funds ongoing dividend growth and bolt-on acquisitions.
| $6.77B |
| $7.00B |
| $7.21B |
| Revenue growth | 0.6% | 4.3% | 4.0% | 3.5% | 3.0% |
| Operating margin | 17.5% | 17.6% | 17.7% | 17.8% | 17.8% |
| Operating income | $1.09B | $1.14B | $1.20B | $1.24B | $1.28B |
| Tax rate | 22.5% | 22.5% | 22.5% | 22.5% | 22.5% |
| NOPAT | $843.80M | $887.39M | $928.13M | $963.33M | $995.02M |
| Reinvestment | $101.26M | $124.23M | $139.22M | $144.50M | $149.25M |
| Reinvestment rate (of NOPAT) | 12.0% | 14.0% | 15.0% | 15.0% | 15.0% |
| Free cash flow to firm | $742.54M | $763.15M | $788.91M | $818.83M | $845.77M |
| Consumer Domestic revenue | $4.80B | $5.01B | $5.21B | $5.39B | $5.55B |
| Consumer International revenue | $1.14B | $1.18B | $1.23B | $1.28B | $1.31B |
| Specialty Products Division revenue | $300.70M | $313.54M | $326.08M | $337.49M | $347.62M |
| Terminal growth | 2.5% | 2.5% | 2.5% | 2.5% | 2.5% |
Church & Dwight's capital allocation balances progressive dividend distributions, disciplined bolt-on acquisitions, and conservative balance-sheet leverage. In FY2025, capital expenditures were held to $122.4M on revenue of $6,203.2M, and FY2026 capex is guided at approximately $130M. Total debt stands at $2,428.3M against an equity market capitalization of $23.2B, representing a conservative debt weight of 9.47%. Management continues to prioritize asset-light bolt-on brand acquisitions, including TheraBreath, Hero, and the recent acquisition of Miss Mouth's stain remover, while returning cash via annual dividends ($1.23 per share).
Consumer Domestic contributed $920.8M of operating profit on $4,774.8M of sales in FY2025, representing 85.4% of total segment operating profit and 76.97% of consolidated sales ($6,203.2M).
Consolidated results are overwhelmingly tethered to U.S. consumer sentiment and retail inventory trends.
FY2025 EBIT margin of 17.37% ($1,077.6M EBIT on $6,203.2M revenue) trails peers Colgate-Palmolive (20.97%) and Procter & Gamble (22.09%).
While gross margin is guided to expand 100 to 120 bps, marketing spend of >=11% of sales caps operating margin expansion near 17.80%.
| 마진 |
|---|
| CHD | Church & Dwight Co. Inc. | $23.2B | 23.4x | 3.7x | 18.5x | 17.0% | — |
| KVUE | Kenvue Inc. | $34.0B | 14.3x | 2.2x | 11.8x | 15.6% | 19.4% |
| EL | The Estee Lauder Companies Inc. | $34.3B | 24.1x | 2.3x | 16.3x | 4.7% | 7.0% |
| CL | Colgate-Palmolive Company | $70.2B | 21.5x | 3.3x | 15.3x | 267.4% | 21.0% |
| PG | The Procter & Gamble Company | $343.6B | 20.0x | 3.9x | 14.9x | 30.3% | 22.1% |
| negative |
| Mass retailers and club channels expanding private-label offerings and demanding increased trade promotional spend pressure branded market share, as seen in Batiste losing 1.4 share points in Q2 2026. |
| < 1.0% year-over-year |
| Downgrade long-term growth schedule to mature inflation-drag trajectory; eliminate all remaining portfolio exposure. |
| Capex to Revenue Intensity | > 3.5% of sales | Re-underwrite free cash flow conversion and reinvestment rate assumptions, reducing enterprise DCF terminal expectations. |
