Church Beneish M Score

CHD
 Stock
  

USD 87.72  0.02  0.0228%   

This module uses fundamental data of Church Dwight to approximate the value of its Beneish M Score. Church Dwight M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Church Dwight Piotroski F Score and Church Dwight Altman Z Score analysis.
  
Church Dwight Debt to Equity Ratio is projected to increase slightly based on the last few years of reporting. The past year's Debt to Equity Ratio was at 1.47. Church Dwight Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 19.97. The current year Inventory Turnover is expected to grow to 6.94, whereas PPandE Turnover is forecasted to decline to 6.98.
At this time, it appears that Church Dwight is an unlikely manipulator. The earnings manipulation may begin if Church Dwight's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Church Dwight executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Church Dwight's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.35
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.05Focus
Asset Quality0.97Focus
Expense Coverage1.04Focus
Gross Margin Strengs1.12Focus
Accruals Factor1.04Focus
Depreciation Resistance1.17Focus
Net Sales Growth0.95Focus
Financial Leverage Condition0.96Focus

Church Dwight Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Church Dwight's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues4.9 B5.2 B
Notably Down
Increasing
Slightly volatile
Selling General and Administrative Expense1.2 B1.2 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations920.8 M993.8 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion189.2 M219.1 M
Fairly Down
Increasing
Slightly volatile
Total Assets7.3 BB
Significantly Down
Increasing
Slightly volatile
Investments9.9 M8.2 M
Fairly Up
Decreasing
Slightly volatile
Investments Non Current9.9 M8.2 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net688 M652.7 M
Notably Up
Increasing
Slightly volatile
Trade and Non Trade Receivables404.8 M405.5 M
Slightly Down
Increasing
Slightly volatile
Total Liabilities4.2 B4.8 B
Fairly Down
Increasing
Slightly volatile
Current Assets1.2 B1.2 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current6.1 B6.8 B
Moderately Down
Increasing
Slightly volatile
Current Liabilities1.7 B2.1 B
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current2.5 B2.7 B
Notably Down
Increasing
Slightly volatile
Total Debt2.2 B2.6 B
Fairly Down
Increasing
Slightly volatile
Debt CurrentB952.2 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current1.5 B1.6 B
Significantly Down
Increasing
Slightly volatile
Operating Income998.1 M1.1 B
Significantly Down
Increasing
Slightly volatile
Gross Margin0.490.436
Moderately Up
Increasing
Slightly volatile

Church Dwight Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Church Dwight's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Church Dwight in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Church Dwight's degree of accounting gimmicks and manipulations.

About Church Dwight Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

1.17 Billion

Church Dwight Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 1.18 Billion

Church Dwight Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Church Dwight. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues3.78 B4.15 B4.36 B4.9 B5.19 B4.91 B
Total Assets6.01 B6.07 B6.66 B7.41 B8 B7.29 B
Current Assets1 B1.08 B956.4 M1.11 B1.23 B1.22 B
Assets Non Current5.01 B4.99 B5.7 B6.3 B6.76 B6.07 B
Total Liabilities3.8 B3.62 B3.99 B4.39 B4.76 B4.22 B
Current Liabilities935 M1.33 B1.09 B1.39 B2.08 B1.69 B
Total Debt2.37 B2.11 B2.06 B2.16 B2.56 B2.22 B
Debt Current270.9 M598.3 M252.9 M351.4 M952.2 M1.03 B
Debt Non Current2.1 B1.51 B1.81 B1.81 B1.61 B1.5 B
Operating Income732.7 M791.7 M840.2 M1.03 B1.08 B998.1 M

Church Dwight ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Church Dwight's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Church Dwight's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Church Dwight Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Church Dwight's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Church Dwight using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Church Dwight based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Church Dwight Co., Inc. develops, manufactures, and markets household, personal care, and specialty products. The company was founded in 1846 and is headquartered in Ewing, New Jersey. Church Dwight operates under Household Personal Products classification in the United States and is traded on New York Stock Exchange. It employs 5100 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Church Dwight without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Church Dwight

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Church Dwight position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Church Dwight will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Church Dwight could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Church Dwight when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Church Dwight - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Church Dwight to buy it.
The correlation of Church Dwight is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Church Dwight moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Church Dwight moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Church Dwight can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Church Dwight Piotroski F Score and Church Dwight Altman Z Score analysis. Note that the Church Dwight information on this page should be used as a complementary analysis to other Church Dwight's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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When running Church Dwight price analysis, check to measure Church Dwight's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Church Dwight is operating at the current time. Most of Church Dwight's value examination focuses on studying past and present price action to predict the probability of Church Dwight's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Church Dwight's price. Additionally, you may evaluate how the addition of Church Dwight to your portfolios can decrease your overall portfolio volatility.
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Is Church Dwight's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Church Dwight. If investors know Church will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Church Dwight listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.13
Market Capitalization
21.3 B
Quarterly Revenue Growth YOY
0.042
Return On Assets
0.0774
Return On Equity
0.23
The market value of Church Dwight is measured differently than its book value, which is the value of Church that is recorded on the company's balance sheet. Investors also form their own opinion of Church Dwight's value that differs from its market value or its book value, called intrinsic value, which is Church Dwight's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Church Dwight's market value can be influenced by many factors that don't directly affect Church Dwight's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Church Dwight's value and its price as these two are different measures arrived at by different means. Investors typically determine Church Dwight value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Church Dwight's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.