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Energizer Holdings (ENR)
NYSE:ENR
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Energizer Holdings
(NYSE:ENR)60Neutral
Positive Factors
Future Performance
Accelerating e-commerce growth in the US and internationally by enhancing its digital capabilities and external partnerships is expected to boost ENR's future performance.
Sales Growth
Energizer Holdings reported better-than-expected organic sales growth due to hurricane-related sales and distribution gains.
Negative Factors
Market Guidance
Q2 guidance from Energizer Holdings was described as underwhelming, impacting the overall analyst recommendation.
Energizer Holdings (ENR) vs. S&P 500 (SPY)
Market Cap
$2.22B
Dividend Yield3.99%
Average Volume (3M)599.73K
Price to Earnings (P/E)38.8
Beta (1Y)0.63
Revenue Growth-0.31%
EPS Growth-37.69%
CountryUS
Employees5,600
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)0.79
Shares Outstanding72,191,930
10 Day Avg. Volume618,273
30 Day Avg. Volume599,726
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.76
Price to Cash Flow (P/CF)7.20
P/FCF Ratio5.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.77Price Target Upside37.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Energizer Holdings Business Overview & Revenue Model
Company DescriptionEnergizer Holdings, Inc. (ENR) is a global consumer goods company operating primarily in the household products sector. The company is renowned for its comprehensive portfolio of batteries, lighting products, and portable power devices. Energizer is a leader in the manufacturing and distribution of alkaline batteries, lithium batteries, and specialty batteries, along with a range of flashlights and lanterns under the Energizer and Eveready brands. The company also offers automotive appearance, fragrance, and performance products through its Armor All, STP, and A/C Pro brands, enhancing its presence in the automotive care industry.
How the Company Makes MoneyEnergizer Holdings generates revenue through the sale of its diverse range of battery products, lighting solutions, and auto care products. The company's primary revenue stream is its battery segment, which includes popular products under the Energizer and Eveready brands. This segment benefits from strong brand recognition and widespread distribution networks, allowing it to capture a significant share of the global battery market. In addition to batteries, Energizer's auto care segment contributes to its earnings through the sale of automotive appearance and performance products. The company often engages in strategic partnerships and distribution agreements to expand its market reach and enhance product availability. Energizer's ability to innovate and adapt to consumer preferences, along with efficient supply chain management, also plays a crucial role in sustaining its revenue growth.
Energizer Holdings Financial Statement Overview
Summary
Energizer Holdings presents a mixed financial outlook with solid operational performance and efficiency. Despite stable margins and strong cash flow conversion, the company faces challenges with high leverage and low equity, which may impact financial flexibility and risk profile. The company needs to focus on improving net profit margins and reducing debt levels to enhance long-term financial health.Income Statement
The income statement shows moderate revenue growth with a slight increase in total revenue from the previous year. Gross profit margin is stable at approximately 38%, indicating consistent cost management. However, net profit margin remains low at 2.0% TTM, reflecting challenges in controlling non-operational expenses. The EBIT margin is strong at 17.4% TTM, demonstrating efficiency in core operations, but there is room for improvement in EBITDA margin, which is relatively low at 12.6% TTM.65
Positive
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio of 22.95, posing a potential risk in financial stability. Stockholders' equity is relatively low compared to total assets, resulting in an equity ratio of only 3.3%. Despite the high debt, the return on equity is 41.6% TTM, indicating that the company is generating significant returns on its equity base.58
Neutral
Cash Flow
Cash flow analysis reveals strong operating cash flow relative to net income, with a ratio of 5.61 TTM, highlighting effective cash generation from operations. Free cash flow growth has been negative, but the free cash flow to net income ratio is favorable at 3.79 TTM, suggesting that the company is converting its earnings into cash efficiently.72
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.90B | 2.89B | 2.96B | 3.05B | 3.02B | 2.74B | Gross Profit |
| 1.11B | 1.10B | 1.12B | 1.12B | 1.16B | 1.08B | EBIT |
| 506.00M | 546.40M | 516.60M | 394.80M | 421.50M | 362.60M | EBITDA |
| 364.30M | 330.00M | 493.10M | -28.00M | 427.80M | 370.30M | Net Income Common Stockholders |
| 58.50M | 38.10M | 140.50M | -231.50M | 160.90M | 46.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 216.90M | 216.90M | 223.30M | 205.30M | 238.90M | 459.80M | Total Assets |
| 4.34B | 4.34B | 4.51B | 4.57B | 5.01B | 5.73B | Total Debt |
| 3.31B | 3.31B | 3.45B | 3.62B | 3.57B | 4.28B | Net Debt |
| 3.09B | 3.09B | 3.23B | 3.42B | 3.33B | 3.82B | Total Liabilities |
| 4.21B | 4.21B | 4.30B | 4.44B | 4.65B | 5.42B | Stockholders Equity |
| 135.80M | 135.80M | 210.70M | 130.60M | 355.70M | 309.10M |
| Cash Flow | Free Cash Flow | ||||
| 221.50M | 331.70M | 338.40M | -91.50M | 114.80M | 311.10M | Operating Cash Flow |
| 328.50M | 429.60M | 395.20M | 1.00M | 179.70M | 376.40M | Investing Cash Flow |
| -111.60M | -114.00M | -56.10M | -90.90M | -126.40M | 216.90M | Financing Cash Flow |
| -245.60M | -300.30M | -309.40M | 79.10M | -1.07B | 393.10M |
Energizer Holdings Technical Analysis
Negative
29.70
Price Trends
33.10
Negative
33.67
Negative
31.41
Negative
Market Momentum
-0.84
Negative
26.21
Positive
15.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENR, the sentiment is Negative. The current price of 29.7 is below the 20-day moving average (MA) of 31.06, below the 50-day MA of 33.10, and below the 200-day MA of 31.41, indicating a bearish trend. The MACD of -0.84 indicates Negative momentum. The RSI at 26.21 is Positive, neither overbought nor oversold. The STOCH value of 15.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ENR.
Energizer Holdings Risk Analysis
Energizer Holdings disclosed 34 risk factors in its most recent earnings report. Energizer Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Energizer Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $406.08B | 27.59 | 30.25% | 2.29% | 0.49% | 5.02% | |
74 Outperform | $27.35B | 46.91 | 13.42% | 1.03% | 4.08% | -22.34% | |
71 Outperform | $47.10B | 18.80 | 302.98% | 3.40% | -1.83% | 45.13% | |
68 Neutral | $46.19B | 24.51 | 19.45% | 3.45% | -0.16% | -26.81% | |
65 Neutral | $18.57B | 41.21 | -1114.63% | 3.12% | -1.98% | 474.83% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
60 Neutral | $2.22B | 38.76 | 41.61% | 3.99% | -0.31% | -37.69% |
* Industrials Sector Average
Performance Comparison
ENR
Energizer Holdings
29.70
3.00
11.24%
CHD
Church & Dwight
110.71
9.90
9.82%
CLX
Clorox
150.77
5.62
3.87%
KMB
Kimberly Clark
141.14
21.88
18.35%
PG
Procter & Gamble
173.18
17.70
11.38%
RBGLY
Reckitt Benckiser Group
13.44
0.97
7.78%
Energizer Holdings Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -11.61% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
Energizer reported a strong first quarter with significant organic sales growth, margin expansion, and debt reduction. However, foreign currency pressures and increased investments are expected to impact future earnings. The company's strategic initiatives and Project Momentum continue to drive confidence in achieving long-term growth despite some headwinds.Highlights
Record Organic Net Sales Growth
Energizer delivered an organic net sales growth of nearly 4% in the first quarter of fiscal 2025.
Adjusted Gross Margin Expansion
Achieved a 50 basis point increase, reaching 40% in adjusted gross margin for the quarter.
Strong Earnings and Debt Reduction
Adjusted earnings per share grew by 14%, and the company reduced debt by $25 million for the tenth consecutive quarter.
Project Momentum Savings
Generated $20 million in savings this quarter from Project Momentum, with expectations of $60 million for the year and $200 million for the program.
Distribution Gains and Innovation
Significant distribution gains and innovation initiatives, including the Armor All Podium Series, which secured distribution in over 15,000 locations globally.
Lowlights
Foreign Currency Headwinds
The strengthening U.S. dollar posed a headwind to reported revenue, impacting net sales growth.
Pressure on Second Quarter Earnings
Forecasted adjusted earnings per share for Q2 are in the range of $0.60 to $0.70, down from $0.72 in the prior year due to increased investments.
Ongoing Pricing and Promotional Investments
1.9% of planned pricing and promotional investments partially offset volume gains, impacting gross margins.
Company Guidance
During Energizer's first quarter fiscal 2025 conference call, the company provided optimistic guidance based on strong financial performance. They reported organic net sales growth of nearly 4%, with adjusted gross margin expanding by 50 basis points to reach 40%. Adjusted earnings per share grew by 14%, and the company paid down $25 million of debt. Project Momentum, their strategic initiative, generated $20 million in savings during the quarter, with expectations of $60 million for the year. Energizer increased its full-year organic sales outlook to 2%-3%, driven by distribution gains, market expansion, and new product launches. They maintained the adjusted earnings per share and adjusted EBITDA outlook, anticipating continued investment in growth initiatives. Additionally, they projected free cash flow to be 8%-10% of net sales, alongside a net leverage ratio of around 4.5 times by the end of the fiscal year.Energizer Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Energizer Holdings to Present at Consumer & Retail Conference
Neutral
Dec 4, 2024
Energizer Holdings, Inc. is set to participate in the Morgan Stanley Global Consumer & Retail Conference, discussing both historical and forward-looking financial statements. The company highlights key risks such as global economic conditions, competition, supply chain disruptions, and regulatory challenges that could impact its market performance. Additionally, Energizer employs non-GAAP financial measures to provide a clearer view of its ongoing operating performance, helping investors understand the business beyond traditional GAAP metrics.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.