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Edgewell Personal Care Co (EPC)
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Edgewell Personal Care (EPC) AI Stock Analysis

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EPC

Edgewell Personal Care

(NYSE:EPC)

Rating:69Neutral
Price Target:
$29.00
▲(7.41%Upside)
Edgewell Personal Care's overall stock score is driven by stable financial performance with consistent margins, offset by concerns of increasing leverage and declining cash flows. The technical analysis suggests short-term bullish momentum but potential long-term weakness. Valuation is reasonable with a supportive dividend yield. The cautious outlook from the earnings call due to North American challenges and currency headwinds also impacts the score.
Positive Factors
Category Trends
Category trends and Edgewell's market shares in North America improved as it exited the quarter, signaling a positive market position.
International Performance
International continues to see strong results across the portfolio, with growth from both volume and price in the Wet Shave and Sun & Skin business.
Market Strategy
The company is stepping up its reinvestment spend to support promising campaigns in US Women's Shave and Sun, indicating a strategic shift towards growth.
Negative Factors
Financial Guidance
Management lowered guidance and earnings expectations for the year due to weaker 2Q results and increased tariff pressures.
North America Performance
Tariffs have increased costs and consumer uncertainty, impacting EPC's recovery in North America.
Sales and Earnings
Edgewell's organic sales growth fell short of estimates, leading the company to cut its sales and earnings guidance for the full year.

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

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: -9.55%|
Next Earnings Date:Aug 05, 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 shows stable operational performance with consistent margins, but there are concerns about increasing leverage and declining cash flow metrics, which could impact future financial flexibility.
Income Statement
75
Positive
Edgewell Personal Care shows stable revenue with a slight decline in the TTM period. The gross profit margin is healthy at approximately 42.6% for TTM, but net profit margin has decreased to 3.8% from 4.4% in the previous year. EBIT and EBITDA margins are stable, indicating consistent operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has increased slightly, indicating higher leverage, which could pose a risk. However, the equity ratio remains stable at around 40%, showing a balanced capital structure. Return on equity has decreased slightly, reflecting a dip in profitability.
Cash Flow
68
Positive
Free cash flow has decreased significantly in the TTM period, impacting the free cash flow to net income ratio. Operating cash flow to net income ratio is lower, suggesting reduced cash generation from operations. This could affect future liquidity if the trend continues.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue2.25B2.25B2.17B2.09B1.95B
Gross Profit955.70M938.40M879.40M950.10M880.90M
EBITDA285.50M317.60M285.40M301.00M237.30M
Net Income98.60M114.70M99.50M117.80M67.60M
Balance Sheet
Total Assets3.73B3.74B3.71B3.67B3.54B
Cash, Cash Equivalents and Short-Term Investments209.10M216.40M188.70M479.20M364.70M
Total Debt1.30B1.45B1.41B1.26B1.26B
Total Liabilities2.15B2.20B2.25B2.09B2.11B
Stockholders Equity1.58B1.54B1.46B1.58B1.43B
Cash Flow
Free Cash Flow174.50M166.60M45.60M172.20M184.90M
Operating Cash Flow231.00M216.10M102.00M229.00M232.60M
Investing Cash Flow-62.40M-50.50M-355.40M-48.70M-196.40M
Financing Cash Flow-179.40M-146.50M-17.60M-65.40M-18.70M

Edgewell Personal Care Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.00
Price Trends
50DMA
25.82
Positive
100DMA
27.84
Negative
200DMA
30.69
Negative
Market Momentum
MACD
0.36
Negative
RSI
60.19
Neutral
STOCH
86.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPC, the sentiment is Positive. The current price of 27 is above the 20-day moving average (MA) of 25.60, above the 50-day MA of 25.82, and below the 200-day MA of 30.69, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 86.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$3.89B23.5322.16%2.56%10.32%18.55%
69
Neutral
$1.27B15.765.53%2.22%-2.11%-28.79%
65
Neutral
$27.25B15.60-4.43%2.56%1.05%4.97%
60
Neutral
$2.62B-8.46%4.47%-6.09%17.71%
58
Neutral
$432.36M-4.93%2.74%-11.85%-1080.00%
57
Neutral
$1.46B28.472.79%3.04%1.46%-95.70%
44
Neutral
$553.45M5.74-23.99%-4.39%-326.42%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EPC
Edgewell Personal Care
27.00
-12.40
-31.47%
HELE
Helen Of Troy
24.11
-36.51
-60.23%
IPAR
Inter Parfums
121.05
-12.19
-9.15%
NWL
Newell Brands
6.27
-2.18
-25.80%
NUS
Nu Skin
8.75
-1.69
-16.19%
SPB
Spectrum Brands Holdings
60.27
-23.87
-28.37%
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.Date of analysis: Jul 23, 2025