Energizer Holdings (ENR) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: 4.13%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.49
• Revenue Growth: 0.39%
• EPS Growth: -37.01%
• Country: US
• Employees: 5,600
• Sector: Industrials
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.13
• Shares Outstanding: 68,268,530
• 10 Day Avg. Volume: 1,493,667
• 30 Day Avg. Volume: 1,296,126
• PEG Ratio: -0.82
• Price to Book (P/B): 16.79
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 6.87
• Enterprise Value/Market Cap: 2.34
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: 7.88
• 1Y Price Target: $30.71
• Price Target Upside: 9.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 63 Neutral
• Price Target: $30.00 ▲(6.95% Upside)

Energizer Holdings' stock score is primarily driven by its stable financial performance and positive earnings call highlights, such as organic sales growth and margin expansion. However, concerns over high leverage, potential overvaluation, and operational challenges in certain segments weigh on the overall score.

Positive Factors

Financial Performance

Energizer Holdings posted a large Q3 EPS beat, indicating strong financial performance.

Strategic Management

Energizer Holdings engaged in aggressive share repurchases, demonstrating confidence in the company's valuation and future prospects.

Negative Factors

Debt and Leverage

Energizer Holdings faces risk exacerbated by high debt leverage, although it seems priced into valuation.

Guidance and Outlook

Q3 guided well below expectations and FY2025 guidance lowered given the uncertain macro environment and consumer.

Macroeconomic Impact

There is low visibility on Energizer Holdings' semi-discretionary portfolio, pressured by a worse macro environment.

Energizer Holdings Business Overview & Revenue Model

Company Description

Energizer Holdings, Inc. (ENR) is a global consumer goods company operating primarily in the manufacturing and distribution of batteries, portable lighting, and automotive care products. Energizer is known for its flagship brand, Energizer, and offers a range of products including alkaline batteries, lithium batteries, specialty batteries, and flashlights. Additionally, the company owns and markets brands like Eveready, Armor All, and STP, providing a diverse portfolio across various consumer sectors.

How the Company Makes Money

Energizer Holdings generates revenue through the sale of its consumer products across multiple categories. The primary revenue streams include the sale of batteries, which constitute a significant portion of its earnings, as well as sales from its portable lighting and automotive care segments. The company leverages a global distribution network, selling products through mass merchandisers, wholesalers, and e-commerce platforms. Key partnerships with retailers and strategic acquisitions also play a crucial role in expanding its market presence and driving sales. Furthermore, Energizer's strong brand recognition and marketing efforts help maintain its competitive position in the consumer goods industry.

Energizer Holdings Financial Statement Overview

Summary

Energizer Holdings exhibits stable revenue growth with strong cash flow generation despite challenges in profitability and high leverage. The company's strong cash flow ratios provide a buffer against financial risks, but high debt levels and a low equity ratio highlight concerns over financial stability.

Income Statement

The company demonstrates stable revenue with a slight growth of 0.51% in TTM compared to the previous year. However, profitability metrics such as the gross profit margin at 38.34% and net profit margin at 1.87% show room for improvement. The EBIT margin of 14.03% indicates moderate operational efficiency, while the EBITDA margin at 12.35% suggests some pressure on earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 24.32, indicating significant leverage, which poses a risk. The equity ratio is low at 3.18%, reflecting limited equity financing. ROE stands at 40.63%, suggesting good returns on equity, but it may be driven by high leverage rather than operational efficiency.

Cash Flow

The company's cash flow is strong with a free cash flow to net income ratio of 3.26, indicating efficient cash generation from operations relative to net income. However, the free cash flow growth rate has been negative, pointing to potential fluctuations in cash reserves. The operating cash flow to net income ratio stands at 5.13, showing robust cash generation from core operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.93B	2.89B	2.96B	3.05B	3.02B	2.74B
Gross Profit	1.24B	1.10B	1.12B	1.12B	1.16B	1.08B
EBITDA	602.30M	330.00M	493.10M	-28.00M	427.80M	370.30M
Net Income	251.70M	38.10M	140.50M	-231.50M	160.90M	46.80M
Balance Sheet
Total Assets	4.52B	4.34B	4.51B	4.57B	5.01B	5.73B
Cash, Cash Equivalents and Short-Term Investments	171.10M	216.90M	223.30M	205.30M	238.90M	459.80M
Total Debt	3.47B	3.31B	3.45B	3.62B	3.57B	4.28B
Total Liabilities	4.33B	4.21B	4.30B	4.44B	4.65B	5.42B
Stockholders Equity	183.20M	135.80M	210.70M	130.60M	355.70M	309.10M
Cash Flow
Free Cash Flow	158.00M	331.70M	338.40M	-91.50M	114.80M	311.10M
Operating Cash Flow	254.50M	429.60M	395.20M	1.00M	179.70M	376.40M
Investing Cash Flow	-106.90M	-114.00M	-56.10M	-90.90M	-126.40M	216.90M
Financing Cash Flow	-126.20M	-300.30M	-309.40M	79.10M	-1.07B	393.10M

Energizer Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENR, the sentiment is Positive. The current price of 28.05 is above the 20-day moving average (MA) of 24.22, above the 50-day MA of 22.56, and below the 200-day MA of 28.77, indicating a bullish trend. The MACD of 1.63 indicates Negative momentum. The RSI at 72.20 is Negative, neither overbought nor oversold. The STOCH value of 91.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENR.

Energizer Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	78 Outperform	$3.52B	10.40	19.13%	1.00%	1.00%	38.51%
POWL	78 Outperform	$2.75B	15.82	34.00%	0.46%	14.32%	33.76%
AEIS	70 Neutral	$5.26B	63.43	7.04%	0.27%	0.06%	-28.32%
Sector *	64 Neutral	€14.89B	16.94	1.43%	3.14%	4.91%	-0.30%
ENR	63 Neutral	$2.03B	8.56	164.19%	4.13%	0.39%	-37.01%
ENVX	55 Neutral	$2.21B	―	-68.46%	―	60.04%	52.49%
ADSE	47 Neutral	$626.82M	―	-279.62%	―	2.45%	-69.94%

Energizer Holdings Corporate Events

Energizer Holdings Refinances Debt for Financial Flexibility

On March 19, 2025, Energizer Holdings announced the successful refinancing and extension of its $760 million Term Loan and $500 million Revolving Credit Facility. This move extends the maturity dates of these facilities, strengthens the company’s debt capital structure, and provides enhanced financial flexibility. The new Term Loan matures in 2032, while the Revolving Credit Facility matures in 2030, both bearing interest rates tied to the Secured Overnight Financing Rate (SOFR). This refinancing is seen as a testament to Energizer’s strong operating performance and commitment to debt reduction, offering benefits to stakeholders by maintaining a cost-efficient and flexible debt structure.