Church Dwight Beta vs. Return On Asset

CHD
 Stock
  

USD 78.89  0.32  0.41%   

For Church Dwight profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Church Dwight to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Church Dwight utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Church Dwight's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Church Dwight over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
The current year Return on Sales is expected to grow to 0.23, whereas Price to Sales Ratio is forecasted to decline to 4.55. The current year Net Income is expected to grow to about 892.8 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (70 M).

Church Dwight Revenues

4.28 Billion

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
(0.17) 
Market Capitalization
19.2 B
Quarterly Revenue Growth YOY
0.004
Return On Assets
0.0776
Return On Equity
0.2
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.

Church Dwight Return On Asset vs. Beta Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Church Dwight's current stock value. Our valuation model uses many indicators to compare Church Dwight value to that of its competitors to determine the firm's financial worth.
Church Dwight is number one stock in beta category among related companies. It is number one stock in return on asset category among related companies reporting about  18.05  of Return On Asset per Beta. As of November 27, 2022, Average Assets is expected to decline to about 6.9 B. In addition to that, Tangible Asset Value is expected to decline to about 2.2 B. Comparative valuation analysis is a catch-all model that can be used if you cannot value Church Dwight by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Church Dwight's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Church Dwight's earnings, one of the primary drivers of an investment's value.

Church Return On Asset vs. Beta

Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Church Dwight 
Beta 
 = 
Covariance 
Variance 
0.43
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Church Dwight 
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
7.76 %
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Church Return On Asset Comparison

Church Dwight is currently under evaluation in return on asset category among related companies.

Beta Analysis

Let's try to break down what Church's beta means in this case. As returns on the market increase, Church Dwight returns are expected to increase less than the market. However, during the bear market, the loss on holding Church Dwight will be expected to be smaller as well.

Church Dwight Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Church Dwight, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Church Dwight will eventually generate negative long term returns. The profitability progress is the general direction of Church Dwight's change in net profit over the period of time. It can combine multiple indicators of Church Dwight, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-68.2 M-70 M
Consolidated Income827.5 M744.9 M
Net Income827.5 M892.8 M
Net Income Common Stock827.5 M744.9 M
Operating Income1.1 B870.3 M
Income Tax Expense204.2 M180.7 M
Net Income Per Employee162.3 K132.9 K

Church Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Church Dwight. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Church Dwight position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Church Dwight's important profitability drivers and their relationship over time.

Use Church Dwight in pair-trading

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.

Church Dwight Pair Trading

Church Dwight Pair Trading Analysis

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

Use Investing Themes to Complement your Church Dwight position

In addition to having Church Dwight in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Sport Products
Sport Products Theme
Companies manufacturing sporting goods and accessories. The Sport Products theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sport Products Theme or any other thematic opportunities.
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Continue to Trending Equities. 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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To fully project Church Dwight's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Church Dwight at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Church Dwight's income statement, its balance sheet, and the statement of cash flows.
Potential Church Dwight investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Church Dwight investors may work on each financial statement separately, they are all related. The changes in Church Dwight's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Church Dwight's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.