Sunday, June 1, 2014

Stock Research: CHD

I initially assumed Church & Dwight Company (CHD) was a restaurant company based on the name but it's actually a Non-Cyclical goods company with a small portfolio of well-known brands. Among them are Arm & Hammer, Trojan, and Oxi Clean. Based on the revenue from the Arm & Hammer brand I'm actually surprised they haven't changed the company name.

On the metrics side this is one of the few companies I've put into my spreadsheet that turned up almost green for everything. They have consistent operating margins over 15%, EPS growth averaging 12%, and ROE over 15%. Only their PE is at 25 and PEG at 1.79.

I plan on starting a position to add some recession defensive holdings to my portfolio while still benefiting from mid cap growth. While the laundry detergent market has become saturated they are expecting growth from their recent vitamin acquisition.