Is CHD a high-quality business?

AlphaMadera's AlphaQuality grade scores Church & Dwight Co., Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CHD compares to a Buffett-style quality bar.

What is Church & Dwight Co., Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CHD based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CHD a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CHD - Church & Dwight Co., Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $103.80 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B 73.1 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C+ 57.8

5yr Avg ROIC 11.6% 68/100
Operating Margin Trend -0.47 pp/yr 34/100

Capital Efficiency

Weight: 15%

A- 80.0

5yr Avg ROE 16.6% 84/100
5yr Share-Count CAGR -0.5% 73/100

Growth Quality

Weight: 15%

C- 50.9

5yr Revenue CAGR 4.6% 57/100
5yr EPS CAGR -2.3% 15/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A 87.3

5yr FCF Margin 15.5% 83/100
5yr FCF/NI Conversion 1.40x 93/100

Balance Sheet

Weight: 20%

A- 86.6

Net Debt / EBITDA 1.38x 79/100
Interest Coverage (EBIT/Int) 11.05x 87/100
Altman Z-Score 5.03 100/100

Stability

Weight: 15%

B+ 76.6

EPS Volatility (σ/μ) 0.25 63/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 0/5 100/100

4 of 4 gurus held; 1 added; 2 trimmed; 1 full exit.

Holders: 4
Avg Δ position: -4.1%
New buys: 0
Full exits: 1

Wood sold -100%
Dalio decreased -35%
Greenblatt increased +20%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.