What is the short answer on CHD’s financial health?
CHD appears financially healthy with caution Q1 2026 net sales were $147B, up 020% reported but 500% organic, while Q1 Adjusted Gross Margin was 4640%, up 130 bps Liquidity is supported by $50340M in cash and cash equivalents against $238B in total debt, plus $122B in 2025 cash from operations Returns remain active through a $03075 quarterly dividend and $90000M in 2025 share repurchases
Balance Sheet Check
What does Church & Dwight Co., Inc.’s latest financial snapshot show?
Strong. The strongest factor is cash generation and gross margin strength, while the main concern is higher debt and weaker free cash flow growth in Q1 2026.
The latest verified period is Q1 2026, with cash flow context from 2025. This verdict combines growth, profitability, cash generation, balance-sheet capacity, and capital efficiency, so it reflects both operating momentum and the pressure from rising leverage.
Cash from operations was $122B in 2025, and that metric deserves deeper analysis first because it funds dividends, repurchases, reinvestment, and debt service; Exploring Church & Dwight Co., Inc. (CHD) Investor Profile: Who's Buying and Why? can help frame the ownership angle too.
Earnings Quality
Is Church & Dwight Co., Inc. revenue growth converting into earnings quality?
Mixed-to-Strong. The clearest confirmation is that Q1 2026 organic growth of 500% outpaced reported sales growth, while operating income, net income, and diluted EPS also moved higher. The main divergence is that reported growth was weaker than organic growth, so execution quality still needs watching.
Investors compare revenue durability with operating income, net income, and EPS across the same period because sales growth alone can overstate performance. For Church & Dwight Co., Inc., the link between organic demand, margin expansion, and per-share results matters more than headline sales, and the pattern is also useful for readers of Exploring Church & Dwight Co., Inc. (CHD) Investor Profile: Who's Buying and Why?.
| Measure | Latest Period | Previous Period | Quality Test | Investor Meaning |
|---|---|---|---|---|
| Revenue | $147B, up 020% reported and 500% organic, Q1 2026 | Not provided in the prompt | Organic and volume-led | Suggests repeatable demand was better than the reported headline |
| Operating Income | $29100M, Q1 2026 | Not provided in the prompt | Faster than revenue based on supplied growth fields | Supports operating leverage and better earnings quality |
| Net Income | $21630M, Q1 2026 | Not provided in the prompt | Improved with operating income; tax, interest, and unusual items not provided | Final earnings confirm the operating result only partly because detail is limited |
| Diluted EPS | $091, Q1 2026 | Not provided in the prompt | Weighted Average Shares Diluted Growth: -063% | Lower share count gave some per-share support, but it was not the main driver |
How durable is Church & Dwight Co., Inc. revenue?
The strongest durability signal is that Power Brands represent 7000% of sales and Consumer Domestic grew 540% organically, led by liquid laundry detergent and cat litter. The biggest limitation is concentration, which makes execution and category demand swings more important.
- Demand Quality: Repeat purchases and everyday household categories support visibility, but the prompt does not provide contract-based demand.
- Pricing and Volume: Q1 2026 growth was led by volume gains; the prompt does not separate price from volume beyond that.
- Diversification: Power Brands concentration is high at 7000% of sales, so product concentration remains a real focus.
That mix points to earnings power, but cash conversion still needs to prove it.
Profitability and Cash
How profitable and cash-generative is Church & Dwight Co., Inc.?
Church & Dwight Co., Inc. showed stronger gross profitability in Q1 2026, with Adjusted Gross Margin at 4640%, up 130 bps. Reported earnings are supported by solid gross profit and operating income, but near-term cash conversion looks mixed because operating cash flow and free cash flow growth were negative.
For Q1 2026, Church & Dwight Co., Inc. reported Gross Profit of $68140M, Operating Income of $29100M, and Net Income of $21630M, so the profit stack remains positive even before cash effects. Interest Expense of $2400M and Net Interest Income of -$2150M show debt cost is present, while Income Tax Expense of $5630M, the 2230% adjusted effective tax rate in 2025, and the expected 2150% adjusted tax rate in 2026 point to tax support without changing the basic operating story. If you need the strategy side too, Mission Statement, Vision, & Core Values (2026) of Church & Dwight Co., Inc. (CHD) helps frame the company’s operating priorities.
| Measure | Latest Period | Previous Period | Verified Driver | Investor Meaning |
|---|---|---|---|---|
| Gross Margin | 4640% in Q1 2026 | 4510% in Q1 2025 | Pricing and mix improved enough to lift adjusted gross margin by 130 bps. | Product economics improved at the top of the profit stack. |
| Operating Margin | Unavailable from the supplied data | Unavailable from the supplied data | No verified operating margin figure was provided. | Scale efficiency cannot be measured directly here. |
| Net Margin | Unavailable from the supplied data | Unavailable from the supplied data | No verified net margin figure was provided. | Final profitability cannot be compared on a margin basis. |
| Operating Cash Flow | $122B in 2025 | Unavailable from the supplied data | Operating cash flow was positive, but FMP Q1 2026 Operating Cash Flow Growth was -5190%. | Cash generation existed in 2025, but near-term conversion needs close monitoring. |
| Free Cash Flow | Unavailable from the supplied data | Unavailable from the supplied data | Free Cash Flow Growth was -5363%; the supplied data do not isolate capital expenditure. | Reinvestment and financing capacity are harder to judge from the available figures. |
What most affects Church & Dwight Co., Inc. cash conversion?
Working capital is the biggest near-term driver, especially Receivables Growth: -283% and Inventory Growth: 815%. That points to cash conversion being more sensitive to balance-sheet timing than to the profit base alone.
- Main Driver: Inventory and receivables swings look like the main cash driver; that is likely temporary unless the pattern repeats.
- Evidence Gap: The supplied data do not show capital expenditure or full working-capital detail.
- Metric to Monitor: Watch operating cash flow and inventory growth next.
Liquidity Check
How strong is Church & Dwight Co., Inc. balance sheet and liquidity?
Church & Dwight Co., Inc. has a Strong balance sheet overall, with Strong liquidity but Mixed leverage. The main protection is $172B in current assets against $141B in current liabilities, while the main concern is heavy debt paired with large acquisition-linked intangibles.
Cash alone does not tell the full story, so the real test is whether Church & Dwight Co., Inc. can cover working-capital needs, service debt, and protect asset quality at the same time. In Q1 2026, current assets exceeded current liabilities, which supports near-term flexibility, but leverage and acquisition assets still matter for solvency and funding capacity. For mission context, see Mission Statement, Vision, & Core Values (2026) of Church & Dwight Co., Inc. (CHD).
| Area | Latest Evidence | Assessment | Investor Meaning |
|---|---|---|---|
| Cash and Working Capital | Cash And Cash Equivalents: $50340M; Cash And Short Term Investments: $50340M; Total Current Assets: $172B; Total Current Liabilities: $141B; Net Receivables: $57660M; Inventory: $57840M; Total Payables: $76350M | Strong | Near-term obligations look covered, so operations and investment should not be forced by cash strain. |
| Total and Net Debt | Short Term Debt: $2460M; Long Term Debt: $221B; Capital Lease Obligations Non Current: $14710M; Total Debt: $238B; 2025 Total Debt: $220B; 2025 Cash-on-Hand: $40900M | Mixed | Debt capacity exists, but leverage reduces flexibility for acquisitions, dividends, and downturns. |
| Debt Service and Refinancing | No maturities, interest rates, or coverage ratios were supplied; operating cash flow details were not provided here. | Mixed | Paying and refinancing debt cannot be judged as cleanly, so investors should watch access to financing. |
| Asset Quality | Goodwill: $263B; Intangible Assets: $348B; Goodwill And Intangible Assets: $611B | Mixed | Large acquisition-linked assets can support growth, but they also raise impairment risk if performance weakens. |
| Liabilities and Equity | Total Current Liabilities: $141B; Total Payables: $76350M; Total Debt: $238B; shareholders' equity was not supplied in the prompt. | Mixed | Obligations are manageable in the near term, but the missing equity figure limits a full capital-base read. |
Which balance-sheet risk matters most for Church & Dwight Co., Inc.?
The biggest risk is asset quality, because $611B of goodwill and intangible assets leaves Church & Dwight Co., Inc. more exposed to impairment than to near-term liquidity stress.
- Current Exposure: Total Current Assets are $172B versus Total Current Liabilities of $141B.
- Protection: Cash And Cash Equivalents are $50340M, supporting day-to-day flexibility.
- Warning Signal: Watch the rise in Total Debt, now $238B, and the size of acquisition-linked intangibles.
Capital Efficiency
How efficiently is Church & Dwight Co., Inc. returning and reinvesting capital?
Church & Dwight Co., Inc. looks Mixed-to-Strong on capital efficiency, with steady shareholder returns and disciplined reinvestment, but internal cash still has to cover dividends, buybacks, and acquisition spending. Cash generation appears useful, though some growth needs can still depend on external funding or balance-sheet capacity.
Return analysis for Church & Dwight Co., Inc. should be read alongside leverage, asset intensity, capital expenditure, working capital, and acquisition spending. Strong returns can still coexist with higher cash needs when a company funds growth through deals and uses existing distribution scale to absorb new brands. For related ownership context, see Exploring Church & Dwight Co., Inc. (CHD) Investor Profile: Who's Buying and Why?.
| Capital Measure | Latest Evidence | Quality Test | Investor Meaning |
|---|---|---|---|
| ROIC | Unavailable in the supplied data. | Operating margins and asset-light brand expansion support capital efficiency, but no ROIC figure was provided. | Invested capital may be creating operating value, but the exact return level cannot be measured here. |
| ROE and ROA | Unavailable in the supplied data. | Leverage could lift ROE, while asset-light operations can support ROA, but neither metric was supplied. | Shareholder return quality and asset efficiency cannot be quantified without the missing values. |
| Maintenance and Growth Investment | Growth Capital Expenditure: 42.21%; TOUCHLAND for up to $880.00M; MISS MOUTH’S MESSY EATER for approximately $32.50M. | Acquisitions and platform use point to growth spending, but no capex dollar value was supplied to separate maintenance from expansion. | Church & Dwight Co., Inc. appears to use capital to add brands and scale distribution rather than heavy asset builds. |
| Internal Funding Capacity | Board declared a 420% increase in the quarterly dividend to $0.3075 per share, the 501st consecutive quarterly payment; full year share repurchases reached $900.00M. | FMP Weighted Average Shares Growth: -0.92% and Weighted Average Shares Diluted Growth: -0.63% show a lower share count, but dividends, buybacks, and acquisitions compete for the same cash. | Funding looks partly internal, but acquisition payments and shareholder returns can pressure leverage or reduce flexibility if cash flow weakens. |
Are Church & Dwight Co., Inc.'s returns on capital sustainable?
Yes, mainly because of its asset-light acquisition model and established distribution platform. Sustainability weakens if acquisition spending, dividend growth, and buybacks outpace operating cash flow or raise leverage too much.
- Operating Source: Brand mix and distribution scale support returns without heavy factory investment.
- Funding Requirement: The largest verified capital need is acquisition spending, including TOUCHLAND for up to $880.00M.
- Durability Test: Returns weaken if cash flow no longer covers dividends, repurchases, and deal funding without added debt or dilution.
Balance Sheet Pressure
What could weaken Church & Dwight Co., Inc. (CHD)’s financial health?
Mixed. CHD’s main buffer is its branded consumer portfolio and pricing power, but the most important verified warning sign is the Middle East conflict driving $2500M to $3000M of 2026 transportation and commodity inflation, with Q1 Adjusted Gross Margin at 4640% needing close monitoring.
CHD can still fund debt service and core investment if demand stays stable, but resilience is being tested by inflation, ERP costs, and weaker cash conversion. The company is relying on productivity programs, price actions, and brand strength, but the key question is whether those offsets can protect cash flow as Exploring Church & Dwight Co., Inc. (CHD) Investor Profile: Who's Buying and Why?
| Pressure | Financial Effect | Existing Protection | Warning Signal |
|---|---|---|---|
| Revenue or Margin Pressure | Middle East conflict-linked transportation and commodity inflation can squeeze operating leverage, earnings, cash flow, and debt capacity if costs outrun pricing. | Productivity programs and price actions can offset part of the pressure, and CHD still has branded demand support. | Watch for further gross margin decline after Q1 Adjusted Gross Margin at 4640%. |
| Working-Capital or Investment Pressure | ERP system upgrade expenses are impacting EPS by approximately 100% through first half of 2026, and weaker cash flow can absorb funding for operations and investment. | The spend appears project-linked rather than structural, so internal funding still matters if execution stays controlled. | Monitor Adjusted Full Year EPS against the Evergreen model target of 800% adjusted EPS growth over the long term, plus Operating Cash Flow Growth: -5190% and Free Cash Flow Growth: -5363% in Q1 2026. |
| Interest or Refinancing Pressure | Higher cost pressure can reduce free cash flow and limit financial flexibility if refinancing needs rise. | Consumer staples demand and operating cash generation remain the main supports, and the pressure is more margin-driven than balance-sheet-driven. | Watch debt, interest, or liquidity stress only if cash conversion stays weak and margins fail to recover. |
Which financial warning signs should investors monitor at Church & Dwight Co., Inc. (CHD)?
Focus first on gross margin compression, then on Q1 2026 operating and free cash flow declines, and finally on EPS pressure from ERP spending. The margin issue is confirmed deterioration; the ERP cost drag is a project risk, not yet a structural break.
Gross Margin Under Inflation Pressure
Middle East conflict-linked transportation and commodity inflation is the clearest threat. Productivity and price actions help, but the next metric is whether gross margin keeps moving down from Q1 Adjusted Gross Margin at 4640%.
ERP Costs Are Pressuring EPS
ERP upgrade expenses are reducing EPS by approximately 100% through the first half of 2026. This looks project-linked, but investors should monitor Adjusted Full Year EPS and whether execution costs stay contained.
Weak Cash Conversion in Q1 2026
Operating Cash Flow Growth: -5190% and Free Cash Flow Growth: -5363% in Q1 2026 matter because they can limit reinvestment room. The key check is whether these remain temporary or persist into later quarters.
Financial Scorecard
What does CHD’s financial health scorecard mean for investors?
CHD earns a Strong overall rating. The strongest factor is cash generation and margin quality, while the weakest is near-term cash-flow conversion under cost pressure. The most important investment condition is whether earnings and cash stay durable through 2026.
| Financial Factor | Rating | Evidence and Investor Meaning |
|---|---|---|
| Revenue and Earnings Quality | Strong | Q1 2026 organic growth of 500%, Consumer Domestic organic growth of 540%, and $21630M net income support durable growth, though reported growth was only 020%. |
| Profitability and Cash | Mixed | Adjusted gross margin of 4640%, up 130 bps, and $1.22B 2025 cash from operations are solid, but -5190% operating cash flow growth and -5363% free cash flow growth are cautions. |
| Balance Sheet and Liquidity | Strong | Cash And Cash Equivalents of $50340M and Total Current Assets of $172B exceed Total Current Liabilities of $141B, but Total Debt of $238B keeps net debt on watch. |
| Capital Efficiency | Mixed | $03075 quarterly dividend, 501st consecutive quarterly payment, and $90000M repurchases show disciplined returns, but acquisition funding needs can reduce flexibility. |
| Financial Resilience | Mixed | Tariff costs, ERP expenses, and 8000% U.S. sales exposure create pressure, but durable brands and liquidity still give CHD room to absorb shocks. |
- What Supports the Thesis: Strong organic growth, high gross margin quality, and ample liquidity support CHD’s durability.
- What Challenges the Thesis: Near-term cash-flow weakness and cost pressure could test margin stability.
- What to Monitor: Organic Sales Growth, Adjusted Gross Margin, Cash from Operations.
For readers using Exploring Church & Dwight Co., Inc. (CHD) Investor Profile: Who's Buying and Why?, these signals matter because forecasts and scenario analysis will depend on whether CHD keeps converting branded growth into cash, which feeds directly into valuation assumptions.
FAQ
What Do Investors Ask About 's Financial Health?
Investors most often ask about the company's revenue quality, profitability, cash generation, debt, liquidity, capital efficiency, and ability to withstand financial pressure.
Is CHD's cash flow enough for dividends?
CHD generated Cash from Operations of $122B in 2025 and raised its quarterly dividend by 420% to $03075 per share That supports dividend capacity, but investors should still compare future cash from operations with dividends, buybacks, acquisitions, and debt needs
How much debt does CHD carry versus cash?
At Q1 2026, CHD had Cash And Cash Equivalents of $50340M and Add Total Debt of $238B in enterprise value data That means debt exceeds cash, so liquidity depends on operating cash flow, current assets, and continued access to financing
What does CHD's gross margin show?
Q1 Adjusted Gross Margin was 4640%, up 130 bps That points to stronger margin quality in the latest quarter, helped by pricing, mix, productivity, or cost control, but investors should monitor whether tariff and transportation costs pressure future margin
Can CHD absorb tariff and ERP costs?
CHD faces $2500M to $3000M of estimated 2026 commodity and transportation inflation and ERP expenses impacting EPS by approximately 100% through first half of 2026 Productivity programs and price actions help, but cash flow and gross margin should confirm resilience
Are CHD's buybacks funded by operations?
CHD completed $90000M of share repurchases in 2025 while generating $122B in Cash from Operations That suggests operations helped fund returns, but acquisitions, dividends, and debt also affect funding capacity, so investors should avoid assuming buybacks are risk-free