Summary
CHD released Q3 results November 1st and Mr. Market promptly bid up shares over 9% before the end of the business day.
The company's compensation structure encourages ALL employees to be focused on gross margin.
CHD focuses heavily on free cash flow and the cash conversion cycle which enables it to effectively compete in a 'Land of Giants'.
While CHD is one of my largest holdings and I fully intend to hold shares for the very long term, I am not naive to think that shares should be acquired at any price.
Introduction
Before anyone lambastes me regarding the title of this article, I want to be perfectly clear that I view mental health issues like any other major health issue. I most certainly do not look down on anyone suffering from mental illness.
With that out of the way, on November 1, 2018, Church & Dwight (CHD) released its Q3 2018 results and provided revised guidance for FY2018.
Before you read any further, I think it is only fair that I disclose up front that I have been long CHD since 2004 and that it is one of my largest holdings.
I have written various articles on CHD with the most recent being a May 8th article in which I viewed CHD as a better option than Procter & Gamble (PG) even though CHD's ~16B market cap is but a mere rounding error when compared to PG's ~222B market cap. Don't just take my word for it… here is a comparison as to how these 2 companies have rewarded shareholders over a 20-year timeframe.
