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Edgewell Personal Care (EPC)
NYSE:EPC
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Edgewell Personal Care
(NYSE:EPC)
Rating:64Neutral
Price Target:
$27.00
▲(9.67%Upside)
Positive Factors
Category Trends
Category trends and Edgewell's market shares in North America improved as it exited the quarter.
International Performance
International continues to see strong results across the portfolio while North America faced broad-based pressure.
Market Strategy
CEO Rod Little noted that 'old Edgewell would have actually cut spend in this moment,' indicating a positive change in strategy.
Negative Factors
Organic Sales Growth
EPC Organic Sales Growth is well below peers, highlighting structurally lower topline growth with NA challenges.
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 Impact
Tariffs have thrown another wrench in EPC's recovery in North America leading to increased cost and consumer uncertainty.
Edgewell Personal Care (EPC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.16B
Dividend Yield2.44%
Average Volume (3M)692.31K
Price to Earnings (P/E)14.4
Beta (1Y)0.69
Revenue Growth-2.11%
EPS Growth-28.79%
CountryUS
Employees6,700
SectorConsumer Defensive
Sector Strength57
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.87
Shares Outstanding47,029,660
10 Day Avg. Volume779,431
30 Day Avg. Volume692,310
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)1.36
Price to Sales (P/S)0.00
P/FCF Ratio43.55
Enterprise Value/Market Cap2.77
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit3.38
Enterprise Value/Ebitda2.63
Forecast
1Y Price Target
$31.43Price Target Upside27.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Edgewell Personal Care Business Overview & Revenue Model
Company DescriptionEdgewell Personal Care Company, together with its subsidiaries, manufactures and markets personal care products worldwide. It operates through three segments: Wet shave, Sun and Skin care, and Feminine care. The Wet Shave segment provides razor systems, such as razor handles and refillable blades, and disposable shave products for men and women under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard, and Personna brands. The Sun and Skin Care segment provides general protection, sport, kids, baby, tanning and after sun products under the Banana Boat and Hawaiian Tropic brands, as well as antibacterial hand wipes, alcohol sanitizing wipes, and hand sanitizer gels under the Wet Ones brand; and skin care products for men under the Bulldog and Jack Black brands, and skin care and grooming products under the Cremo brand. The Feminine Care segment provides tampons under the Playtex Gentle Glide 360°, Playtex Sport, Playtex and o.b. brands; and markets pads and liners under the Stayfree and Carefree brands. The company was formerly known as Energizer Holdings, Inc. and changed its name to Edgewell Personal Care Company in June 2015. Edgewell Personal Care Company was founded in 1772 and is headquartered in Shelton, Connecticut.
How the Company Makes MoneyEdgewell Personal Care generates revenue primarily through the sale of its diverse portfolio of personal care products. The company's key revenue streams include the shaving products segment, which encompasses razors, blades, and related accessories under the Schick and Wilkinson Sword brands. Additionally, the sun care segment with brands like Banana Boat and Hawaiian Tropic contributes significantly to its earnings. The feminine care and infant care products, including Playtex and Diaper Genie, also play a crucial role in the company's revenue model. Edgewell distributes its products through various channels, including retail partnerships with major supermarkets, pharmacies, and online platforms, enabling broad consumer reach. Strategic partnerships and acquisitions further enhance its market presence and product offerings, contributing to its overall financial performance.
Edgewell Personal Care Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q2-2025)
| % Change Since: -17.52%|
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.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.76
Positive
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.69
Positive
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.82
Very Positive
| 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 |
| EBITDA | 279.10M | 285.50M | 317.60M | 285.40M | 301.00M | 237.30M |
| Net Income | 84.70M | 98.60M | 114.70M | 99.50M | 117.80M | 67.60M |
Balance Sheet | ||||||
| Total Assets | 3.77B | 3.73B | 3.74B | 3.71B | 3.67B | 3.54B |
| Cash, Cash Equivalents and Short-Term Investments | 170.10M | 209.10M | 216.40M | 188.70M | 479.20M | 364.70M |
| Total Debt | 1.48B | 1.30B | 1.45B | 1.41B | 1.26B | 1.26B |
| 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
Neutral
24.62
Price Trends
26.82
Negative
28.42
Negative
31.40
Negative
Market Momentum
-0.76
Negative
46.53
Neutral
79.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPC, the sentiment is Neutral. The current price of 24.62 is above the 20-day moving average (MA) of 24.39, below the 50-day MA of 26.82, and below the 200-day MA of 31.40, indicating a neutral trend. The MACD of -0.76 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 79.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $4.45B | 26.93 | 22.16% | 2.31% | 10.32% | 18.55% | |
69 Neutral | $749.72M | 6.05 | 7.45% | ― | -4.93% | -23.61% | |
66 Neutral | £10.49B | 6.20 | 4.94% | 3.10% | -0.88% | 2.57% | |
64 Neutral | $1.16B | 14.37 | 5.53% | 2.44% | -2.11% | -28.79% | |
61 Neutral | $440.76M | ― | -4.93% | 2.69% | -11.85% | -1080.00% | |
58 Neutral | $1.39B | 27.06 | 2.79% | 3.23% | 1.46% | -95.70% | |
49 Neutral | $2.44B | ― | -8.46% | 4.79% | -6.09% | 17.71% |
* Consumer Defensive Sector Average
Performance Comparison
EPC
Edgewell Personal Care
24.62
-14.06
-36.35%
HELE
Helen Of Troy
32.66
-56.35
-63.31%
IPAR
Inter Parfums
138.55
25.86
22.95%
NWL
Newell Brands
5.84
-0.07
-1.18%
NUS
Nu Skin
8.92
-1.57
-14.97%
SPB
Spectrum Brands Holdings
56.58
-25.81
-31.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.