Is this a steady consumer staples play?
Church & Dwight makes household and personal care products sold through mass retail and other consumer channels. The portfolio spans everyday staples, with demand tied to repeat purchase behavior rather than one-off cycles. The company operates at large scale, with a market capitalization around USD 22.7 billion. Its equity base is widely held, with roughly 236.9 million shares outstanding.
Are margins and reinvestment staying balanced?
FundamentalsFor 2025, reported in USD, revenue reached USD 6.2 billion, with EBIT of USD 1.1 billion and net income of USD 736.8 million. Year over year, revenue increased 1.6%, alongside a 45.07% gross margin and a 17.30% operating margin on a trailing basis.
Reinvestment remained modest relative to the income base, with depreciation and amortization of USD 89.7 million and capital spending of USD 122.4 million. The cash-flow proxy was about USD 824.9 million, while total debt stood at USD 2.2 billion.
Does the current price match fair value?
DCF / MultiplesAt USD 95.67, the stock trades within the DCF range that runs from USD 77.63 in a weaker outcome to USD 123.45 in the central case and USD 183.79 in a stronger outcome. The current price also aligns with a 30.85× trailing P/E and a 20.92× EV/EBITDA.
Premium depends on steady growth
TakeawayThe price does not look like a bargain. The case depends on steady growth with disciplined reinvestment. Cash generation needs to stay reliable as spending stays controlled. If growth stays low, the multiple becomes harder to defend.