Taking a look at a recent 8-K filing, we can review their third quarter numbers and determine in the short term the direction of the company. The company came out with a third quarter 2016 earnings per share of $0.47 per share, which was a 4.4% increase over the prior year quarter. Net sales increased $8.9 million or 1% to $870.7 million, driven by global consumer net sales growth of 2.2%. As a potential investor, these are the numbers that you want to see going in. There is still growth and the company is producing profits.
Switching gears over to the chart, we can see that price is pulling back from the recent highs, but is holding around the $45 dollar area, which could be acting a support level from the prior breakout. Right now is a great place for price as a potential investor because price could swing in either direction. Patience is key at this level and let price discover where it wants to go, do not chase it in either direction. Keep an eye on news and numbers and then when the timing is right, make your entry.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Church Dwight income statement, its balance sheet, and the statement of cash flows. Potential Church Dwight investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Church Dwight investors may use 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.
The goal of Church Dwight
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Church Dwight performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Church Dwight shares is the value that is considered the true value of the share. If
the intrinsic value of Church is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Church Dwight. Please read more on our
fundamental analysis page.
How effective is Church Dwight in utilizing its assets?
Church Dwight reports assets on its Balance Sheet. It represents the amount of Church resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Church Dwight aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Household Products space. To get a better handle on how balance sheet or income statements item affect Church volatility, please check the breakdown of all its
fundamentals.
Are Church Dwight Earnings Expected to grow?
The
future earnings power of Church Dwight involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Church Dwight factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Church Dwight
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Church
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Church Dwight earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Church Dwight dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Church one year expected dividend income is about USD0.72 per share.
The current year's
Dividends Paid is expected to grow to about 279.8
M. The current year's
Dividend Yield is expected to grow to 0.01.
Investing in dividend-paying stocks, such as Church Dwight is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Church Dwight must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Church Dwight. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Church Dwight Gross Profit
Church Dwight Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Church Dwight previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Church Dwight Gross Profit growth over the last 10 years. Please check Church Dwight's
gross profit and other
fundamental indicators for more details.
What is the case for Church Dwight Investors
Risks
Taking a look at the company’s most recent 10-K filing, you can view all the risks that may affect the company, but here are a few to just keep in mind while you’re doing your quick scan. Unfavorable economic conditions could adversely affect the company as well as demand for their products. When the economy slows, people cut back on every aspect of their life in order to save pennies. Also, there is the competition factor in their respective markets and the failure to compete will have an adverse affect, ultimately affecting shareholder value. Be sure to watch what the competition is doing and understand if the company your invested in is keeping pace with the new advancements.
Conclusion
There is nothing that stands out from the quick review that investors should be worried about. However, with any investment, it’s important to research and formulate your opinion based upon your unique situation. If you still have questions, reach out to an investing professional as they have the ability to clear up any questions and hopefully point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Church Dwight. Please refer to our
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