{
  "docId": "019dd923-622c-750b-8b98-c3e7825e1948",
  "docSlug": "8b6a62f49fba",
  "documentTitle": "Church & Dwight Co., Inc. (CHD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-05 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 22,
  "pageCount": 92,
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  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 36,
  "notes": "Uses a red arrow to visually emphasize the decline in dividend growth rate in 2019.",
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  "slideHref": "/slides/019dd923-622c-750b-8b98-c3e7825e1948/22",
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      "kind": "callout",
      "text": "We achieved extraordinary results by delivering EPS growth of 17 percent, and we delivered extraordinary TSR of 33.2 percent, which was in the top 10 percent of our TSR Peer Group. As a result, management recommended, and the Committee approved, a special 15 percent discretionary bonus payout to reward all employees (including the named executive officers) for their significant contributions toward these strong achievements in 2018.",
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      "kind": "metric",
      "text": "Dividend Growth Rate",
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      "kind": "paragraph",
      "text": "We find it concerning that CHD's 2019 dividend grew at the slowest rate in recent history. We believe this is a signal of weakening cash flow expectations. Yet, CHD proclaimed great performance in 2018, going so far as to reward employees and management with a special 15% bonus. However, our forensic analysis will show how management rigged certain financial performance metrics in its favor to flatter results, and extract excessive compensation. Certain models tie share price valuation to dividend growth rate. As a result, it makes little sense to Spruce Point why CHD's valuation multiple is at an all-time high with the dividend growth rate slowing.",
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      "kind": "source-note",
      "text": "Source: CHD",
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      "kind": "table",
      "text": "Fiscal Year, Quarterly Dividend, Annual Dividend, Dividend Growth Rate. 2011-2019 data rows.",
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      "kind": "title",
      "text": "Dividend Growth Slowing",
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      "evidence": "Contrasts management's quote about 'extraordinary results' with the declining dividend growth data.",
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      "evidence": "The document extensively details the problems with CHD, including rising debt, low-quality EBITDA, worrisome strategy shifts, and concerning CEO history.",
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      "bestFor": "Urgent budget requests, compliance, risk mitigation",
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      "evidence": "The overall thesis implies that failing to act on Spruce Point's analysis could lead to significant financial losses for investors holding onto CHD stock.",
      "position": 2,
      "objective": "The cost of not selling CHD",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
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