Edgewell Personal Care (EPC) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 2.59%
• Average Volume (3M): 673.34K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.68
• Revenue Growth: -2.11%
• EPS Growth: -28.79%
• Country: US
• Employees: 6,700
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Household & Personal Products
• EPS (TTM): 0.87
• Shares Outstanding: 47,029,660
• 10 Day Avg. Volume: 665,221
• 30 Day Avg. Volume: 673,343
• PEG Ratio: -1.53
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.55
• Enterprise Value/Market Cap: 2.94
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 2.63
• 1Y Price Target: $31.43
• Price Target Upside: 35.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 65 Neutral
• Price Target: $27.00 ▲(16.58%Upside)

Edgewell Personal Care's overall stock score is driven by stable financial performance and fair valuation. However, the bearish technical indicators and cautious outlook from the recent earnings call weigh down the score. Despite strong international growth, challenges in North American sales and cost impacts from tariffs present risks.

Positive Factors

International Growth

International saw growth from both volume and price and across the Wet Shave and Sun & Skin business.

Market Share Improvement

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

Guidance Reduction

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.

Organic Sales Growth Issues

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 Challenges

Tariffs have thrown another wrench in EPC's recovery in North America leading to increased cost and consumer uncertainty.

Edgewell Personal Care Business Overview & Revenue Model

Company Description

Edgewell Personal Care Company is a leading consumer products company that specializes in the production and distribution of personal care products. The company operates in sectors including grooming, sun care, and skin care, with a diverse portfolio of well-known brands such as Schick, Wilkinson Sword, Edge, Skintimate, Banana Boat, Hawaiian Tropic, and Wet Ones. Edgewell is committed to creating innovative and effective products that cater to the needs of consumers across the globe.

How the Company Makes Money

Edgewell Personal Care generates revenue primarily through the sale of its personal care products across various categories including grooming, sun care, skin care, and feminine care. The company's key revenue streams include sales from its grooming products like razors and blades under the Schick and Wilkinson Sword brands, sun care products under Banana Boat and Hawaiian Tropic, and skin care and hygiene products such as Wet Ones. Edgewell sells its products through a combination of retail partners, including mass merchandisers, drugstores, supermarkets, and e-commerce platforms. Strategic partnerships and licensing agreements, along with a focus on innovation and brand development, further contribute to Edgewell's earnings.

Edgewell Personal Care Financial Statement Overview

Summary

Edgewell Personal Care demonstrates stable financial health with consistent profitability and a solid balance sheet, though revenue growth has stagnated. The company maintains a balanced capital structure and strong cash flow management, suggesting resilience in its operations. While there are concerns regarding debt levels and EBIT margins, the overall financial position remains stable, supporting continued operations and potential future growth opportunities.

Income Statement

Edgewell Personal Care shows stable revenue with a slight decline in the TTM period compared to the prior year. Gross Profit Margin for TTM stands at approximately 42.6%, and Net Profit Margin is 3.8%, indicating moderate profitability. Despite a decrease in EBIT and EBITDA margins to 8.4% and 12.5% respectively, the company maintains reasonable profitability levels, but the revenue growth remains stagnant, which could be a concern for future growth.

Balance Sheet

The balance sheet indicates a moderate Debt-to-Equity ratio of 0.98, reflecting balanced leverage. ROE is at 5.6%, showing a decent return on shareholder equity but with room for improvement. The Equity Ratio is 40.1%, suggesting a stable capital structure with sufficient equity backing the assets. However, the increase in debt over recent periods could pose a potential risk if not managed carefully.

Cash Flow

Free Cash Flow has grown to $32 million in the TTM period, although overall Operating Cash Flow decreased compared to the previous year. The Operating Cash Flow to Net Income Ratio is 1.23, indicating strong cash generation relative to net income. Despite the decline in Operating Cash Flow, the company effectively manages its capital expenditures to maintain positive Free Cash Flow, which is a positive indicator for liquidity.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.22B	2.25B	2.25B	2.17B	2.09B	1.95B
	Gross Profit
947.70M	955.70M	938.40M	879.40M	950.10M	880.90M
	EBIT
186.20M	199.30M	224.60M	181.20M	238.80M	195.20M
	EBITDA
279.10M	285.50M	317.60M	285.40M	301.00M	237.30M
	Net Income Common Stockholders
84.70M	98.60M	114.70M	99.50M	117.80M	67.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
170.10M	209.10M	216.40M	188.70M	479.20M	364.70M
	Total Assets
3.77B	3.73B	3.74B	3.71B	3.67B	3.54B
	Total Debt
1.48B	1.30B	1.45B	1.41B	1.26B	1.26B
	Net Debt
1.31B	1.09B	1.23B	1.22B	781.50M	894.30M
	Total Liabilities
2.26B	2.15B	2.20B	2.25B	2.09B	2.11B
	Stockholders Equity
1.51B	1.58B	1.54B	1.46B	1.58B	1.43B
Cash Flow		Free Cash Flow
32.00M	174.50M	166.60M	45.60M	172.20M	184.90M
	Operating Cash Flow
104.40M	231.00M	216.10M	102.00M	229.00M	232.60M
	Investing Cash Flow
-75.70M	-62.40M	-50.50M	-355.40M	-48.70M	-196.40M
	Financing Cash Flow
131.90M	-179.40M	-146.50M	-17.60M	-65.40M	-18.70M

Edgewell Personal Care Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 23.16 is below the 20-day moving average (MA) of 26.78, below the 50-day MA of 28.29, and below the 200-day MA of 32.32, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 25.46 is Positive, neither overbought nor oversold. The STOCH value of 3.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPC.

Edgewell Personal Care Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPAR	82 Outperform	$4.54B	26.44	22.16%	2.35%	10.32%	18.55%
EPC	65 Neutral	$1.09B	13.52	5.53%	2.59%	-2.11%	-28.79%
Sector *	65 Neutral	$8.81B	14.92	4.67%	6.17%	3.60%	-2.89%
HELE	64 Neutral	$620.83M	5.01	7.45%	―	-4.93%	-23.61%
NUS	62 Neutral	$373.56M	―	-4.93%	3.17%	-11.85%	-1080.00%
SPB	58 Neutral	$1.29B	24.74	2.79%	3.63%	1.46%	-95.70%
NWL	52 Neutral	$2.27B	―	-8.46%	5.16%	-6.09%	17.71%