Edgewell Personal Care (EPC) AI Stock Analysis

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Edgewell Personal Care

(NYSE:EPC)

69Neutral

Edgewell Personal Care's overall stock score reflects its stable financial health and balanced capital structure, although stagnant revenue growth and increased debt levels present challenges. The technical analysis indicates bearish trends, though valuation metrics suggest the stock is fairly priced. Recent earnings call data highlights cautious guidance, with positive international growth offset by challenges in North America. These factors collectively position the stock at a moderate level, reflecting both potential and risks.

Positive Factors

Market Share and Category Trends

Category trends and Edgewell's market shares in North America improved as it exited the quarter.

Strategic Reinvestment

The company is stepping up its reinvestment spend next quarter to support promising campaigns in US Women's Shave and Sun.

Negative Factors

North America Performance

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.

Sales and Earnings Guidance

Edgewell's organic sales growth fell short of its own and Street estimates this quarter and the company cut its sales and earnings guidance for the full year.

Tariff and Cost Pressures

Management lowered guidance and earnings expectations for the year on the weaker 2Q results and lowered earnings expectations due to incremental tariff pressures, increased promo investment needed, and higher A&P expectations.

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

Market Cap

$1.34B

Dividend Yield2.11%

Average Volume (3M)578.89K

Price to Earnings (P/E)16.6

Beta (1Y)0.65

Revenue Growth-2.11%

EPS Growth-28.79%

CountryUS

Employees6,700

SectorConsumer Defensive

Sector Strength68

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)0.87

Shares Outstanding47,029,660

10 Day Avg. Volume869,288

30 Day Avg. Volume578,891

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)0.88

Price to Sales (P/S)0.00

P/FCF Ratio10.47

Enterprise Value/Market Cap1.91

Enterprise Value/Revenue0.28

Enterprise Value/Gross Profit2.70

Enterprise Value/Ebitda2.02

Forecast

1Y Price Target

$30.83

Price Target Upside8.67% 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 shows stable financial performance with consistent revenue and cash flow generation. Strong operating cash flow and a balanced capital structure are positives, though profit margins and stockholders' equity need improvement.

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	285.50M	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
175.50M	209.10M	216.40M	188.70M	479.20M	364.70M
	Total Assets
3.70B	3.73B	3.74B	3.71B	3.67B	3.54B
	Total Debt
1.47B	1.30B	1.45B	1.41B	1.26B	1.26B
	Net Debt
1.29B	1.09B	1.23B	1.22B	781.50M	894.30M
	Total Liabilities
2.20B	2.15B	2.20B	2.25B	2.09B	2.11B
	Stockholders Equity
1.50B	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 Price28.37

Price Trends

50DMA

29.72

Negative

100DMA

30.81

Negative

200DMA

33.45

Negative

Market Momentum

MACD

-0.50

Positive

RSI

43.73

Neutral

STOCH

80.87

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 28.37 is below the 20-day moving average (MA) of 29.28, below the 50-day MA of 29.72, and below the 200-day MA of 33.45, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 80.87 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 (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPAR	80 Outperform	$4.12B	24.91	22.16%	2.38%	10.32%	18.55%
EPC	69 Neutral	$1.34B	16.63	5.53%	2.11%	-2.11%	-28.79%
Sector *	64 Neutral	$8.82B	14.70	4.78%	173.90%	3.26%	2.11%
HELE	63 Neutral	$703.88M	5.79	7.45%	―	-4.93%	-23.61%
NUS	61 Neutral	$368.13M	―	-4.93%	3.22%	-11.85%	-1080.00%
SPB	54 Neutral	$1.59B	30.44	2.79%	2.80%	1.46%	-95.70%
NWL	49 Neutral	$2.38B	―	-8.46%	4.92%	-6.09%	17.71%

* Consumer Defensive Sector Average

Performance Comparison

EPC

Edgewell Personal Care

28.37

-11.27

-28.43%

HELE

Helen Of Troy

31.26

-74.63

-70.48%

IPAR

Inter Parfums

130.04

14.70

12.74%

NWL

Newell Brands

5.71

-1.98

-25.75%

NUS

Nu Skin

7.59

-5.69

-42.85%

SPB

Spectrum Brands Holdings

64.00

-26.69

-29.43%

Edgewell Personal Care Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q2-2025)

% Change Since: -5.50%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant international growth and strong brand performance in specific areas like the Billie brand. However, this was offset by challenges in North America, including declines in Sun Care and Fem Care sales, and the impact of tariffs on costs. The outlook for the second half of the fiscal year is cautious due to expected lower consumption trends.

Q2-2025 Updates

Positive Updates

Record International Growth

International markets saw 3% organic growth, marking the 12th growth quarter in the last 13. This growth was driven by both price and volume gains.

Productivity Savings

Edgewell realized approximately 380 basis points of productivity savings, which contributed to a 110 basis points constant currency gross margin accretion.

Strong Brand Performance

The Billie brand saw significant market share gains, reaching a 15% share at Walmart and 14% at Target in women's systems.

Successful International Innovations

Notable product launches in international markets included the expansion of the Billie brand to Australia and new product innovations in Japan.

Negative Updates

Decline in North America Sales

Organic sales in North America declined about 4%, driven by declines in Sun, Shave Preps, and Fem Care.

Tariff-Related Cost Impact

The in-year cost impact of tariffs is estimated to be $3 million to $4 million, with an annualized exposure of 3% to 4% of COGS.

Lower U.S. Sun Care Sales

Sun Care sales in the U.S. declined due to poor weather and order phasing related to the Easter holiday.

Fem Care Portfolio Struggles

Fem Care organic sales declined 9%, with the category showing slow recovery and consumption declines in tampons and pads.

Company Guidance

During Edgewell's Second Quarter Fiscal Year 2025 Earnings Call, the company provided guidance reflecting a cautious outlook due to a challenging macroeconomic environment. They revised their full-year organic net sales growth expectation to a range of flat to 1%, with a forecast of 2% growth in the second half. The company anticipates full-year adjusted earnings per share to be between $2.85 and $3.05, impacted by approximately $0.35 per share in currency headwinds. Adjusted EBITDA is expected to be in the range of $329 million to $341 million, also inclusive of currency impacts. Tariffs are anticipated to have a $3 million to $4 million impact on COGS for fiscal 2025, with an annualized exposure of 3% to 4% of COGS. Despite these challenges, Edgewell is incrementally investing in North America, particularly in Sun Care and Women's Shave, to strengthen market position and anticipates sequential improvement in the region's performance.

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.