Church & Dwight Co., Inc. (NYSE:CHD)

CAPS Rating: 4 out of 5

The Company develops, manufactures and markets a range of household, personal care and specialty products.

Recs

1
Player Avatar DivMonk (63.98) Submitted: 11/18/2009 1:54:57 PM : Outperform Start Price: $27.22 CHD Score: +76.74

This company has a lot of cash flow, a small but growing dividend, easy-to-understand and necessary products, and is priced reasonably. Their earnings are increasing rapidly for the industry, giving them a forward PEG ratio of below 1 even with their dividend. One drawback is that although their revenue is increasing, it's not increasing as quickly as earnings are, meaning that growth is likely to slow a bit if they can't grow sales more quickly over the next 5 years or so.

Even if it only performs averagely, it's great for a portfolio because this is the kind of company you can most likely hold for a lifetime. And at a market cap of $4 billion, there's a small but possible chance of it being acquired by a larger company eventually.

Reasonably upside, low downside. Heads I win, tales I still kind of win.

Member Avatar pjgz (34.10) Submitted: 4/15/2011 11:57:41 PM
Recs: 0

Thanks for the analysis. CHD continues to outperform my expectations, so I have been buying in spite of MV calculations.
Tell me, how do you get a PEG below 1 for CHD?
With next years eps of $4.85, and a growth est. of 12%, I get a forward P/E of $18/sh(or current P/E=21) and a PEG of 1.39, not < 1. Are your predicting higher EPS?

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