Edgewell Personal Care (EPC) AI Stock Analysis

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Edgewell Personal Care

(NYSE:EPC)

63Neutral

Edgewell Personal Care's overall stock score reflects a stable financial position and moderate valuation, balanced by technical challenges and mixed earnings call sentiments. Strong international growth and brand performance are notable positives, while currency headwinds and North American market challenges pose risks. Continued focus on operational efficiencies and market expansion will be crucial for future performance.

Positive Factors

Growth Strategy

The Right to Win and international portfolio continue to see strong results, expected to lead to sales growth up to +3.7%.

International Growth

Internationally, sales were up +2.4%, better than expected, with widespread growth including volume growth.

Valuation

Stay Overweight with all-time low valuation against EPS which is growing.

Negative Factors

EPS Performance

EPC's stock sold off -9.5% after a FQ1 EPS miss, although results are viewed as fine on an underlying basis.

North America Challenges

A large and disconcerting 6% North America decline, with some outsized temporary pressures, including supply issues and a weaker than expected end to sun care season on weather.

Organic Sales Growth

EPC Organic Sales Growth is well below peers, highlighting structurally lower topline growth with NA challenges.

Edgewell Personal Care (EPC) vs. S&P 500 (SPY)

Market Cap

$1.43B

Dividend Yield2.02%

Average Volume (3M)566.87K

Price to Earnings (P/E)16.2

Beta (1Y)0.65

Revenue Growth-1.24%

EPS Growth-10.95%

CountryUS

Employees6,700

SectorConsumer Defensive

Sector Strength93

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)1.83

Shares Outstanding48,228,670

10 Day Avg. Volume481,533

30 Day Avg. Volume566,871

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.63

Price to Cash Flow (P/CF)-3.10

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.86

Price Target Upside28.12% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

Edgewell Personal Care Business Overview & Revenue Model

Company DescriptionEdgewell Personal Care (EPC) is a leading consumer products company that specializes in personal care products. The company operates in various sectors, including grooming, sun and skin care, and feminine care. Core products include well-known brands such as Schick and Wilkinson Sword for shaving, Banana Boat and Hawaiian Tropic for sun protection, and Playtex and Stayfree for feminine care.

How the Company Makes MoneyEdgewell Personal Care generates revenue primarily through the sale of its consumer products across various categories. The company leverages a diverse portfolio of well-established brands in grooming, sun and skin care, and feminine care to reach a wide consumer base. Key revenue streams include direct sales to major retailers, both brick-and-mortar and online, and distribution partnerships. The company also engages in strategic marketing and brand positioning to maintain its market share and drive consumer demand. Additionally, Edgewell may explore licensing agreements and product innovations as part of its growth strategy.

Edgewell Personal Care Financial Statement Overview

Summary

Edgewell Personal Care demonstrates stable financial performance with consistent revenue and cash flow generation. The company maintains a reasonable balance between debt and equity, although there are areas for improvement in profit margins and equity growth. Continued focus on cost management and capital efficiency will be key to enhancing financial health.

Income Statement

Positive

The income statement shows a moderate performance with a consistent revenue base. The TTM gross profit margin is approximately 42.3%, indicating decent cost management. However, the net profit margin of around 4.1% suggests room for improvement in efficiency. Revenue growth has been stable, with a slight dip in the most recent TTM compared to the previous annual period.

Balance Sheet

Positive

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.98, which is manageable but suggests reliance on debt. The equity ratio stands at approximately 40.5%, indicating a balanced capital structure. However, there has been a slight decline in stockholders' equity over the last year, which could be a concern if the trend continues.

Cash Flow

Positive

Cash flow analysis reveals strong operating cash flow with a TTM figure of $188.3 million, supporting a healthy operating cash flow to net income ratio of 2.05. Free cash flow growth is positive, indicating solid cash generation. However, fluctuations in capital expenditure and financing activities could introduce some volatility.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
2.24B	2.25B	2.25B	2.17B	2.09B	1.95B
	Gross Profit
949.60M	955.70M	938.40M	879.40M	950.10M	880.90M
	EBIT
197.40M	199.30M	224.60M	181.20M	238.80M	195.20M
	EBITDA
296.90M	285.40M	317.60M	285.40M	301.00M	237.30M
	Net Income Common Stockholders
91.70M	98.60M	114.70M	99.50M	117.80M	67.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
444.10M	209.10M	216.40M	188.70M	479.20M	364.70M
	Total Assets
6.70B	3.73B	3.74B	3.71B	3.67B	3.54B
	Total Debt
2.40B	1.30B	1.45B	1.41B	1.26B	1.26B
	Net Debt
1.95B	1.09B	1.23B	1.22B	781.50M	894.30M
	Total Liabilities
4.49B	2.15B	2.20B	2.25B	2.09B	2.11B
	Stockholders Equity
2.21B	1.58B	1.54B	1.46B	1.58B	1.43B
Cash Flow		Free Cash Flow
121.50M	174.50M	166.60M	45.60M	172.20M	184.90M
	Operating Cash Flow
188.30M	231.00M	216.10M	102.00M	229.00M	232.60M
	Investing Cash Flow
-72.10M	-62.40M	-50.50M	-355.40M	-48.70M	-196.40M
	Financing Cash Flow
40.10M	-179.40M	-146.50M	-17.60M	-65.40M	-18.70M

Edgewell Personal Care Technical Analysis

Technical Analysis Sentiment

Negative

Last Price27.99

Price Trends

50DMA

30.92

Negative

100DMA

32.72

Negative

200DMA

35.02

Negative

Market Momentum

MACD

-0.12

Negative

RSI

55.52

Neutral

STOCH

88.18

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPC, the sentiment is Negative. The current price of 27.99 is below the 20-day moving average (MA) of 30.45, below the 50-day MA of 30.92, and below the 200-day MA of 35.02, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 88.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPC.

Edgewell Personal Care Risk Analysis

Edgewell Personal Care disclosed 23 risk factors in its most recent earnings report. Edgewell Personal Care reported the most risks in the “Production” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Edgewell Personal Care Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CL	79 Outperform	$74.34B	26.12	704.02%	2.18%	3.30%	26.83%
ULTA	77 Outperform	$16.28B	14.16	50.39%	―	0.79%	-2.70%
PG	76 Outperform	$383.97B	26.09	31.05%	2.46%	0.49%	5.02%
KMB	71 Outperform	$45.74B	18.26	290.03%	3.57%	-1.83%	45.13%
EPC	63 Neutral	$1.43B	16.23	6.02%	2.02%	-1.24%	-10.95%
Sector *	62 Neutral	$20.19B	14.01	-16.14%	3.22%	1.15%	3.41%
EL	50 Neutral	$19.04B	147.29	-14.17%	3.82%	0.07%	-249.21%

* Consumer Defensive Sector Average

Performance Comparison

EPC

Edgewell Personal Care

27.99

-7.99

-22.21%

Colgate-Palmolive

89.19

3.34

3.89%

The Estée Lauder Companies

52.95

-89.27

-62.77%

KMB

Kimberly Clark

134.54

12.82

10.53%

Procter & Gamble

160.23

7.95

5.22%

ULTA

Ulta Beauty

342.93

-109.85

-24.26%

Edgewell Personal Care Earnings Call Summary

Earnings Call Date: Feb 10, 2025 | % Change Since: -10.97% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mixed sentiment with solid international growth and strong brand performances, particularly in Billy and Cremo, offset by challenges in the North American market, especially in the femcare segment, and significant currency headwinds impacting financial results.

Highlights

International Business Growth

The international segment experienced a 2% organic growth, marking the fifth consecutive quarter of organic sales growth and the eleventh in the last twelve quarters, with a three-year CAGR of nearly 8%.

Strong Performance of Billy and Cremo Brands

The Billy brand gained 230 basis points in women's shave market share, now holding a 15% share at Walmart and over 10% nationally. Cremo brand saw a 20% organic growth driven by range expansion and retail execution.

Improved Operational Execution

Productivity savings of 340 basis points exceeded expectations, leading to an 80 basis point accretion in constant currency gross margin. Service levels and in-stock positions significantly improved.

Strong International Sun Care Performance

Sun care market share increased in Australia and Mexico. Innovation and strong brand activation drove results, with new product launches in Japan, Europe, and other markets.

Lowlights

Organic Net Sales Decline

Overall organic net sales decreased by 1.3%, with North America seeing a 4% decline due to lower volumes in femcare and wet shave.

Challenges in Femcare

Femcare organic net sales decreased by 12%, particularly in pads, due to the transition from Stayfree to Carefree and heightened promotional activity affecting market share.

Currency Headwinds Impact

Currency movements negatively impacted adjusted operating margin by 170 basis points and adjusted EBITDA by $11 million. Adjusted earnings per share faced a $0.17 per share unfavorable impact.

Company Guidance

During the Edgewell Personal Care Company's earnings call for the first quarter of fiscal year 2025, the company provided updated guidance reflecting a challenging macroeconomic environment, particularly due to foreign exchange headwinds. The company anticipates organic net sales growth of 1% to 3% for the full year, with constant currency gross margins expected to increase by 90 basis points, although adjusted for currency impacts, this will be a 55 basis point increase. Adjusted earnings per share (EPS) are projected towards the lower end of the $3.15 to $3.35 range, with FX expected to impact EPS by approximately $0.36 per share. Adjusted EBITDA is also expected to be at the lower end of the $356 million to $368 million range due to about $23 million in currency headwinds. The company remains focused on maintaining growth momentum internationally, particularly in sun care and grooming categories, while managing operational efficiencies and productivity savings to offset some external pressures.

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.