$111.90
arrow_drop_down0.33%Is CHD a Buy or Sell based on AI Analysis?
Fundamental Analysis
One key indicator to consider in Church & Dwight Co Inc's fundamental analysis is its price-to-earnings ratio (P/E ratio) of 33.1, which indicates the price investors are willing to pay for the company's earnings. This ratio can help investors assess the stock's valuation relative to its earnings growth potential. Additionally, the company's return on equity (ROE) of 20.57% showcases the efficiency with which Church & Dwight is generating profits from shareholders' equity. A higher ROE typically indicates more efficient use of equity capital. Another crucial indicator is Church & Dwight's dividend yield of 1.13%, which reflects the company's financial stability and ability to generate consistent income for investors. Moreover, the company's gross margin of 44.11% highlights its profitability and efficiency in producing goods. A strong gross margin can indicate that the company is effectively managing its production costs. Lastly, the company's debt-to-equity ratio of 0.68 suggests that Church & Dwight has a relatively low level of debt compared to its equity, indicating a lower risk profile and better financial health. This ratio can help investors assess the company's ability to meet its financial obligations.
Positive Development
Upgrade to a Zacks Rank #2 (Buy) indicating growing optimism about the company's earnings prospects, which could drive the stock price higher in the near term. The company has been consistently outperforming its competitors, indicating a strong market position and potential for future growth. The company's gross margin, operating margin, and net margin are all relatively high, indicating efficiency in its operations and profitability.
Negative Development
The company's stock has underperformed in several trading sessions, which could indicate a lack of investor confidence. The company's long-term debt to equity ratio is relatively high, which could be a concern for investors looking for a more stable financial position. The company's payout ratio is relatively high, which could indicate that the company is not generating enough cash to cover its dividend payments.
Technical Analysis
Based on the data provided, Church & Dwight Co Inc (CHD) has a neutral technical rating, with one technical buy indicator (ATR), four hold indicators (RSI, MACD, ADX, and ROC), and three sell indicators (CCI, WILLR, and STOCHRSI) for the month. The stock's price has shown a 0.63% increase over the past seven days and a 0.69% increase in the one-month period. Additionally, the company's technical indicators were last updated on March 4, 2024, suggesting that the technical analysis data is recent and relevant for potential investors or traders looking to assess the stock's performance. Furthermore, CHD's technical analysis also highlights a beta of 0.54, indicating that the stock is less volatile than the market average. The stock's moving average (SMA) stands at 1.23, suggesting a stable trend in the stock's price movement. The technical analysis also includes information on the stock's price change percentages over different time frames, such as six months at 6.06% and year-to-date at 6.75%. Overall, the technical analysis provides a comprehensive overview of CHD's stock performance and can be a valuable tool for investors seeking to make informed decisions in the market.
Conclusion and recommendation
Based on the data provided, Church & Dwight Co Inc (CHD) appears to be a solid investment opportunity in the Consumer Defensive sector. The company has a strong track record of revenue growth, with a 9.16% increase and a net income of $755.6M. Additionally, CHD boasts a healthy operating margin of 14.14% and a return on equity of 20.57%, indicating efficient management of assets and resources. With a dividend yield of 1.13% and a history of consistent dividend payouts, CHD offers investors an attractive income opportunity. In conclusion, Church & Dwight Co Inc presents a compelling investment case for those seeking stability and growth potential in the Consumer Defensive sector. The company's strong financial performance, steady dividend payments, and positive analyst forecasts make it a promising choice for long-term investors. With a solid market position and a focus on quality products, CHD is well-positioned to continue delivering value to shareholders.