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This is an introduction to my Church & Dwight (CHD) stock analysis which is based on Q1 2018 results and projections for the remainder of FY2018. I view CHD as having better potential to provide superior long-term investor returns than its much larger peer - Procter & Gamble.

Summary

  • CHD released its Q1 2018 results on May 3rd and upped its projected sales growth and projected organic sales growth guidance from that provided just a few months ago.
  • CHD has outperformed its larger peers in the S&P 500 Household Products Index.
  • I view CHD as having greater potential to provide superior long-term investor returns than its much larger peer - Procter & Gamble - which I recently analyzed.
  • I anticipate CHD will continue to reward long-term investors and encourage readers not to disregard CHD just because of its low dividend yield.

Introduction

On May 3, 2018 Church & Dwight (NYSE: CHD) released its Q1 2018 results and provided amended guidance for the remainder of FY2018.

Before you read any further I think it is only fair that I disclose up front that I have been long CHD since 2004 and that it is my 5th largest holding; shares are held in a retirement account and are excluded in any reporting on the FFJ Portfolio.

I also encourage you to refer to previous CHD articles which can be found here, here, and here.

Business Overview

I encourage you to access the FY2017 10-K wherein section 1 (starts on page 4 of 96) provides a comprehensive overview of CHD.

The following also provides a high level snapshot of how CHD has performed from an adjusted earnings perspective over the past several years.

Consistent Strong Adj EPS Growth

Source: CHD – CAGNY Presentation - February 24 2012

Consistent Strong Adj EPS Growth

Source: CHD – CAGNY Presentation - February 23 2018

The following graph extracted from the FY2017 10-K also shows how CHD has performed over the past 5 years relative to the S&P500 and its peer group.

CHD - Comparison of Cumulative 5 Year Total Return

Source: CHD FY2017 10-K - page 24 of 96

Please click here to read my CHD stock analysis.

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