Investment Research report

Church & Dwight Co., Inc.

NYSE:
chd
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Research Overview

INDEX:
S&P 500
Sector:
Consumer Staples
Position:
Short
Date:
Sep 5, 2019

After conducting a forensic financial and accounting review, Spruce Point believes Church & Dwight Co., Inc. (NYSE: CHD), an S&P 500 company and roll-up acquirer of personal care and consumer products, has pivoted towards extreme financial engineering, aggressive accounting, and managerial self-enrichment practices. Based on our investigation, we estimate 35% to 50% downside risk, or $40 - $52 per share.

The report highlights several key concerns with the company, including:

  • The Company’s strategy appears to have shifted from operations to poorly executed M&A
  • We have identified early signs of financial strain and aggressive accounting
  • Evidence of undeserved record valuation multiple and premium
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