Church & Dwight Excels with Strong Ratings from Guru Strategies

Church & Dwight Co Inc has scored well with 66% in the P/B Growth Investor model, indicating strong underlying fundamentals. A score above 80% typically signifies interest, reflecting positively on the stock’s future.

Date: 20-01-2025

AI Rating: 6

Growth Potential Strongly Indicated

Church & Dwight Co Inc (CHD) is rated using the P/B Growth Investor model, scoring 66%, which suggests the stock has favorable characteristics that may align with sustained future growth. This rating reflects positively on the growth potential for CHD, given the nature of low book-to-market stocks.

Strong Fundamentals

The report highlights several key fundamentals that Church & Dwight meets, including:

Book/Market Ratio: PASS
Return on Assets: PASS
Cash Flow from Operations to Assets: PASS
Cash Flow from Operations to Assets vs. Return on Assets: PASS
Return on Assets Variance: PASS
Sales Variance: PASS

These indicators suggest that the company is efficiently utilizing its assets to generate profit, which could be a contributing factor to positive stock performance.

Areas of Concern

However, the analysis also points out that CHD has failed on three criteria:

Advertising to Assets: FAIL
Capital Expenditures to Assets: FAIL
Research and Development to Assets: FAIL

These failings might indicate that while the company performs well in many areas, it is not investing sufficiently in advertising, capital expenditures, or R&D relative to its assets, which could impact long-term growth and innovation.

Overall, CHD presents a mixed outlook. While it has a solid rating in terms of growth and several positive fundamentals, the failed criteria warrant caution among investors. Nevertheless, Churc & Dwight's strong performance metrics may attract interest in an otherwise uncertain market.

Stocks: CHD