LRT Capital Management, in its Q1 2021 investor letter, mentioned Church & Dwight Co., Inc. (NYSE: CHD), and shared their insights on the company. Church & Dwight Co., Inc. is an Ewing Township-based household products manufacturer that currently has a $20.9 billion market capitalization. Since the beginning of the year, CHD delivered a -2.20% return, while its 12-month gains are up by 15.22%. As of May 27, 2021, the stock closed at $85.31 per share.
Here is what LRT Capital Management has to say about Church & Dwight Co., Inc. in its Q1 2021 investor letter:
“Church & Dwight is another classic “defensive” company – it sells cleaning products (Arm & Hammer, OxiClean), toothache medication (Orajel), and condoms (Trojans). For those that fail to purchase Trojans, the company also offers pregnancy test kits (First Response). Joking aside, the company’s revenue has historically grown by GDP+ rates organically. Combined with thoughtful acquisitions, 10-year revenue growth has averaged +6.6%, which has translated to EPS growth of over +11% per year. The company has accomplished all this with ½ of the overall volatility of the stock market. The company reported Q4 2020 earnings on January 29th, beating both top (revenue +14% YoY) and bottom line measures (EPS $0.59 vs $0.51 expected). We view the shares as reasonably valued at 26x forward earnings given the high level of predictability of the company’s earnings and low financial leverage. Shares are down 0.5% year-to-date.”
Our calculations show that Church & Dwight Co., Inc. (NYSE: CHD) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Church & Dwight Co., Inc. was in 27 hedge fund portfolios, compared to 38 funds in the fourth quarter of 2020. CHD delivered a 7.46% return in the past 3 months.
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