Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin17.4%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin11.9%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt3.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$2.1B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$99M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
A
Free Cash Flow$1.1B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income16.6%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$1.1B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit44.7%
Operating Margin17.4%
Net Margin11.9%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
44.7%▼
45.7%▲
44.1%▲
41.9%
Operating Margin %
17.4%▼
19.1%▲
18.0%▼
18.8%
Net Income %
11.9%▲
9.6%▼
12.9%▲
7.7%
Diluted EPS
3.02▲
2.37▼
3.05▲
1.68
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$8.9B
$8.9B
$8.6B
$8.3B
N/A
Total Debt
$2.2B▲
$2.2B▼
$2.4B▼
$2.7B•
N/A
Working Capital
$99M▼
$925M▲
$108M▼
$212M•
N/A
Years to Pay Debt
2.99
3.77
3.18
6.46
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$1.1B▲
$976M▲
$807M▲
$706M•
N/A
Owner Earnings
$1.1B
$1.0B
$1.2B
$812M
N/A
CapEx % of Net Income
16.6%
30.7%
29.6%
43.2%
N/A
Income Statement
2025
2024
2023
2022
Tax Effect Of Unusual Items
0
-80,705
0
-85,899
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
1,299,500
1,447,500
1,303,500
1,242,900
Total Unusual Items
0
-357,100
0
-411,000
Total Unusual Items Excluding Goodwill
0
-357,100
0
-411,000
Net Income From Continuing Operation Net Minority Interest
736,800
585,300
755,600
413,900
Reconciled Depreciation
247,400
239,100
225,200
219,000
Reconciled Cost Of Revenue
3,428,400
3,317,000
3,279,400
3,125,600
EBITDA
1,299,500
1,090,400
1,303,500
831,900
EBIT
1,052,100
851,300
1,078,300
612,900
Net Interest Income
-71,700
-68,700
-97,900
-85,800
Interest Expense
95,200
95,000
110,900
89,600
Interest Income
23,500
26,300
13,000
3,800
Normalized Income
736,800
861,695
755,600
739,001
Net Income From Continuing And Discontinued Operation
736,800
585,300
755,600
413,900
Total Expenses
5,125,600
4,942,900
4,810,500
4,366,800
Total Operating Income As Reported
1,077,600
807,100
1,057,400
597,800
Diluted Average Shares
244,300
246,900
247,600
246,300
Basic Average Shares
242,700
244,400
244,900
242,900
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
736,800
585,300
755,600
413,900
Net Income Common Stockholders
736,800
585,300
755,600
413,900
Net Income
736,800
585,300
755,600
413,900
Net Income Including Noncontrolling Interests
736,800
585,300
755,600
413,900
Net Income Continuous Operations
736,800
585,300
755,600
413,900
Tax Provision
220,100
171,000
211,800
109,400
Pretax Income
956,900
756,300
967,400
523,300
Other Income Expense
-49,000
-339,200
7,900
-399,700
Other Non Operating Income Expenses
-56,900
8,800
-800
-1,000
Special Income Charges
0
-357,100
0
-411,000
Impairment Of Capital Assets
0
357,100
0
411,000
Earnings From Equity Interest
7,900
9,100
8,700
12,300
Gain On Sale Of Security
3,800
Net Non Operating Interest Income Expense
-71,700
-68,700
-97,900
-85,800
Interest Expense Non Operating
95,200
95,000
110,900
89,600
Interest Income Non Operating
23,500
26,300
13,000
3,800
Operating Income
1,077,600
1,164,200
1,057,400
1,008,800
Operating Expense
1,697,200
1,625,900
1,531,100
1,241,200
Selling General And Administration
1,697,200
1,625,900
1,531,100
1,241,200
Selling And Marketing Expense
708,900
698,100
641,300
535,200
General And Administrative Expense
988,300
927,800
889,800
706,000
Other Gand A
988,300
927,800
889,800
706,000
Gross Profit
2,774,800
2,790,100
2,588,500
2,250,000
Cost Of Revenue
3,428,400
3,317,000
3,279,400
3,125,600
Total Revenue
6,203,200
6,107,100
5,867,900
5,375,600
Operating Revenue
6,203,200
6,107,100
5,867,900
5,375,600
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
57,156
47,830
50,557
49,814
Ordinary Shares Number
236,554
245,880
243,153
243,896
Share Issued
293,710
293,710
293,710
293,710
Net Debt
1,796,100
1,240,500
2,061,500
2,403,200
Total Debt
2,205,100
2,204,600
2,406,000
2,673,500
Tangible Book Value
-2,136,800
-960,900
-1,878,400
-2,368,500
Invested Capital
6,207,300
6,565,400
6,261,400
6,163,400
Working Capital
99,300
924,700
107,700
212,100
Net Tangible Assets
-2,136,800
-960,900
-1,878,400
-2,368,500
Common Stock Equity
4,002,200
4,360,800
3,855,400
3,489,900
Total Capitalization
6,207,300
6,565,400
6,057,600
6,089,400
Total Equity Gross Minority Interest
4,002,200
4,360,800
3,855,400
3,489,900
Stockholders Equity
4,002,200
4,360,800
3,855,400
3,489,900
Gains Losses Not Affecting Retained Earnings
-19,900
-30,900
-27,200
-29,300
Other Equity Adjustments
-19,900
-30,900
-27,200
-29,300
Foreign Currency Translation Adjustments
-53,200
-37,800
-46,400
-30,200
Minimum Pension Liabilities
4,400
4,600
1,700
-600
Treasury Stock
3,664,900
2,784,800
2,878,200
2,665,300
Retained Earnings
6,768,200
6,319,700
6,012,300
5,524,600
Additional Paid In Capital
625,100
563,100
454,800
366,200
Capital Stock
293,700
293,700
293,700
293,700
Common Stock
293,700
293,700
293,700
293,700
Total Liabilities Net Minority Interest
4,910,200
4,522,300
4,713,800
4,855,700
Total Non Current Liabilities Net Minority Interest
3,412,500
3,206,400
3,291,800
3,671,900
Other Non Current Liabilities
320,500
332,600
346,500
315,400
Non Current Deferred Liabilities
886,900
669,200
743,100
757,000
Non Current Deferred Taxes Liabilities
886,900
669,200
743,100
757,000
Long Term Debt And Capital Lease Obligation
2,205,100
2,204,600
2,202,200
2,599,500
Long Term Debt
2,205,100
2,204,600
2,202,200
2,599,500
Current Liabilities
1,497,700
1,315,900
1,422,000
1,183,800
Current Debt And Capital Lease Obligation
203,800
74,000
952,200
Current Debt
203,800
74,000
952,200
Other Current Borrowings
199,900
699,400
Line Of Credit
0
3,900
3,400
3,100
Commercial Paper
0
70,600
249,700
Payables And Accrued Expenses
1,497,700
1,315,900
1,218,200
1,109,800
Current Accrued Expenses
761,900
605,500
580,400
436,100
Payables
735,800
710,400
637,800
673,700
Total Tax Payable
3,400
5,300
7,200
7,000
Income Tax Payable
3,400
5,300
7,200
7,000
Accounts Payable
732,400
705,100
630,600
666,700
Total Assets
8,912,400
8,883,100
8,569,200
8,345,600
Total Non Current Assets
7,315,400
6,642,500
7,039,500
6,949,700
Other Non Current Assets
343,300
378,000
366,000
317,500
Investments And Advances
10,300
11,100
12,000
12,700
Long Term Equity Investment
10,300
11,100
12,000
12,700
Investmentsin Associatesat Cost
9,100
Goodwill And Other Intangible Assets
6,139,000
5,321,700
5,733,800
5,858,400
Other Intangible Assets
3,511,500
2,888,500
3,302,300
3,431,600
Goodwill
2,627,500
2,433,200
2,431,500
2,426,800
Net PPE
822,800
931,700
927,700
761,100
Accumulated Depreciation
-874,200
-920,100
-889,700
-840,100
Gross PPE
1,697,000
1,851,800
1,817,400
1,601,200
Construction In Progress
131,900
215,100
348,400
211,500
Machinery Furniture Equipment
1,181,600
1,259,300
1,122,900
1,062,500
Buildings And Improvements
367,500
348,200
317,800
299,100
Land And Improvements
16,000
29,200
28,300
28,100
Current Assets
1,597,000
2,240,600
1,529,700
1,395,900
Other Current Assets
59,800
62,400
45,000
57,000
Inventory
534,800
613,300
613,300
646,600
Finished Goods
356,100
427,500
435,600
450,300
Work In Process
35,000
45,400
40,200
46,800
Raw Materials
143,700
140,400
137,500
149,500
Receivables
593,400
600,800
526,900
422,000
Accounts Receivable
593,400
600,800
526,900
422,000
Allowance For Doubtful Accounts Receivable
-3,700
-5,100
-7,300
-3,500
Gross Accounts Receivable
597,100
605,900
534,200
425,500
Cash Cash Equivalents And Short Term Investments
409,000
964,100
344,500
270,300
Cash And Cash Equivalents
409,000
964,100
344,500
270,300
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
1,093,000
976,400
807,100
706,400
Repurchase Of Capital Stock
-900,000
0
-300,100
0
Repayment Of Debt
0
-208,200
-270,600
-878,900
Issuance Of Debt
0
0
998,800
799,200
Capital Expenditure
-122,400
-179,800
-223,500
-178,800
Interest Paid Supplemental Data
94,600
94,400
111,900
86,000
Income Tax Paid Supplemental Data
188,100
259,600
228,200
213,100
End Cash Position
409,000
964,100
344,500
270,300
Beginning Cash Position
964,100
344,500
270,300
240,600
Effect Of Exchange Rate Changes
8,800
-9,900
3,500
-6,000
Changes In Cash
-563,900
629,500
70,700
35,700
Financing Cash Flow
-1,162,400
-343,400
-725,600
-120,900
Cash Flow From Continuing Financing Activities
-1,162,400
-343,400
-725,600
-120,900
Net Other Financing Charges
-10,800
-1,100
-100
-12,000
Proceeds From Stock Option Exercised
35,600
142,900
111,700
26,200
Cash Dividends Paid
-287,200
-277,000
-266,500
-255,000
Common Stock Dividend Paid
-287,200
-277,000
-266,500
-255,000
Net Common Stock Issuance
-900,000
0
-300,100
0
Common Stock Payments
-900,000
0
-300,100
0
Net Issuance Payments Of Debt
0
-208,200
-270,600
119,900
Net Short Term Debt Issuance
0
-3,600
-70,600
-178,900
Short Term Debt Payments
0
-3,600
-70,600
-178,900
Net Long Term Debt Issuance
0
-204,600
-200,000
298,800
Long Term Debt Payments
0
-204,600
-200,000
-700,000
Long Term Debt Issuance
0
0
998,800
799,200
Investing Cash Flow
-616,900
-183,300
-234,300
-728,600
Cash Flow From Continuing Investing Activities
-616,900
-183,300
-234,300
-728,600
Net Other Investing Changes
1,200
9,800
-10,800
-3,000
Net Business Purchase And Sale
-495,700
-13,300
0
-546,800
Sale Of Business
160,300
6,600
0
0
Purchase Of Business
-656,000
-19,900
0
-546,800
Net PPE Purchase And Sale
-122,400
-179,800
-223,500
-178,800
Purchase Of PPE
-122,400
-179,800
-223,500
-178,800
Operating Cash Flow
1,215,400
1,156,200
1,030,600
885,200
Cash Flow From Continuing Operating Activities
1,215,400
1,156,200
1,030,600
885,200
Dividend Received Cfo
8,800
8,900
9,500
8,700
Change In Working Capital
9,800
-8,200
-9,300
-68,900
Change In Other Working Capital
-23,300
-18,600
-14,200
-27,600
Change In Other Current Assets
1,200
-500
10,400
2,500
Change In Payables And Accrued Expense
-63,600
90,400
53,400
54,300
Change In Accrued Expense
-60,900
-1,100
113,300
33,000
Change In Payable
-2,700
91,500
-59,900
21,300
Change In Account Payable
2,400
98,600
-58,100
6,900
Change In Tax Payable
-5,100
-7,100
-1,800
14,400
Change In Income Tax Payable
-5,100
-7,100
-1,800
14,400
Change In Inventory
56,100
2,000
38,500
-92,800
Change In Receivables
39,400
-81,500
-97,400
-5,300
Changes In Account Receivables
39,400
-81,500
-97,400
-5,300
Other Non Cash Items
12,300
-6,200
-400
-3,200
Stock Based Compensation
58,000
59,200
63,600
32,300
Asset Impairment Charge
55,700
369,200
8,900
413,400
Deferred Tax
36,000
-82,000
-13,800
-117,700
Deferred Income Tax
36,000
-82,000
-13,800
-117,700
Depreciation Amortization Depletion
247,400
239,100
225,200
219,000
Depreciation And Amortization
247,400
239,100
225,200
219,000
Amortization Cash Flow
157,700
155,900
152,400
152,000
Amortization Of Intangibles
157,700
155,900
152,400
152,000
Depreciation
89,700
83,200
72,800
67,000
Operating Gains Losses
50,600
-9,100
-8,700
-12,300
Earnings Losses From Equity Investments
-7,900
-9,100
-8,700
-12,300
Gain Loss On Sale Of Business
58,500
0
0
Net Income From Continuing Operations
736,800
585,300
755,600
413,900
3/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $4.0B
Warren's Owner Earnings
$1.1B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
3/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$6.2B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.07x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $1.68 to $3.02 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+79.8% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $6.2Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.07xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $1.68 to $3.02 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what CHD is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
11.5%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
16.6%
30.7%
29.6%
43.2%
N/A
Repurchase of Capital Stock
-$900M
$0M
-$300M
$0M
N/A
Free Cash Flow
$1.1B▲
$976M▲
$807M▲
$706M•
N/A•
Warren's Owner Earnings
$1.1B
$1.0B
$1.2B
$812M
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare CHD against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
CHD (CHD) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 44.7%. Operating margin: 17.4%. Net margin: 11.9%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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