Edgewell Personal Care (EPC) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 2.5%
• Average Volume (3M): 912.46K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.64
• Revenue Growth: -2.92%
• EPS Growth: -43.06%
• Country: US
• Employees: 6,700
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Household & Personal Products
• EPS (TTM): 0.92
• Shares Outstanding: 46,464,245
• 10 Day Avg. Volume: 749,579
• 30 Day Avg. Volume: 912,459
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: $26.00
• Price Target Upside: 8.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 58 Neutral
• Price Target: $24.50 ▲(2.25% Upside)

Edgewell Personal Care's overall stock score reflects a stable financial position but is weighed down by declining revenue growth and operational challenges. The bearish technical indicators and moderate valuation further contribute to a cautious outlook. While international growth and brand performance are positives, significant challenges in North America and adverse external factors limit the stock's appeal.

Positive Factors

Market Share

Hawaiian Tropic gained 150 bps of share in a declining overall sun category and was the fastest-growing brand in the top 10 brands.

Stock Outlook

Upgrade to Equal-Weight from Underweight indicates an improvement in the stock's outlook.

Valuation

The valuation of EPC reaching an all-time low suggests a potential bottom, making it more attractive.

Negative Factors

Financial Performance

The stock experienced a -19% drop after a miss in financial metrics and a downward guidance revision.

Guidance

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.

Tariffs Impact

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, 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 Money

Edgewell Personal Care generates revenue primarily through the sale of its consumer products across various retail channels, including mass merchandisers, drugstores, supermarkets, and e-commerce platforms. The company employs a multi-brand strategy, allowing it to capture a broad consumer base by offering a diverse range of products. Key revenue streams include sales of grooming products, which represent a significant portion of their earnings, as well as contributions from feminine care and sun care products. Edgewell also engages in strategic partnerships and collaborations with retailers and distributors to enhance product visibility and availability. Seasonal demand for sun care products further boosts revenues, particularly during the summer months. Additionally, the company's commitment to innovation and product development helps maintain a competitive edge in the market, contributing to its financial growth.

Edgewell Personal Care Financial Statement Overview

Summary

Edgewell Personal Care shows a stable financial position with some concerns. Revenue growth is declining, and margins are under pressure. The balance sheet is robust with manageable debt, but cash flow efficiency needs improvement.

Income Statement

Edgewell Personal Care's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a stable gross profit margin of around 42%, and a modest net profit margin of approximately 2.94%. The EBIT and EBITDA margins have decreased compared to previous years, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.89, indicating manageable leverage. The return on equity has decreased to 4.2% in the TTM period, showing reduced profitability from equity. The equity ratio remains healthy, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 33.44% in the TTM period, which is a strong indicator of cash generation. However, the operating cash flow to net income ratio has decreased, indicating potential challenges in converting income into cash. The free cash flow to net income ratio remains moderate at 36.19%.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.20B	2.25B	2.25B	2.17B	2.09B	1.95B
Gross Profit	929.10M	955.70M	938.40M	879.40M	950.10M	886.00M
EBITDA	245.10M	285.50M	317.60M	285.40M	301.00M	237.30M
Net Income	64.80M	98.60M	114.70M	99.50M	117.80M	67.60M
Balance Sheet
Total Assets	3.79B	3.73B	3.74B	3.71B	3.67B	3.54B
Cash, Cash Equivalents and Short-Term Investments	199.60M	209.10M	216.40M	188.70M	479.20M	364.70M
Total Debt	1.41B	1.39B	1.45B	1.46B	1.32B	1.30B
Total Liabilities	2.23B	2.15B	2.20B	2.25B	2.09B	2.11B
Stockholders Equity	1.57B	1.58B	1.54B	1.46B	1.58B	1.43B
Cash Flow
Free Cash Flow	42.70M	174.50M	166.60M	45.60M	172.20M	184.90M
Operating Cash Flow	118.00M	231.00M	216.10M	102.00M	229.00M	232.60M
Investing Cash Flow	-70.80M	-62.40M	-50.50M	-355.40M	-48.70M	-196.40M
Financing Cash Flow	-51.00M	-179.40M	-146.50M	-17.60M	-65.40M	-18.70M

Edgewell Personal Care Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 23.96 is above the 20-day moving average (MA) of 23.55, below the 50-day MA of 24.37, and below the 200-day MA of 29.60, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 50.35 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 is Negative, 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
NUS	74 Outperform	$563.28M	5.68	13.68%	1.98%	-11.79%	―
IPAR	65 Neutral	$3.60B	22.42	20.68%	2.67%	7.04%	13.52%
Sector *	63 Neutral	$20.91B	14.58	-4.08%	3.07%	2.70%	-8.71%
SPB	62 Neutral	$1.36B	20.99	2.98%	3.19%	-2.78%	-17.38%
EPC	58 Neutral	$1.09B	17.25	4.12%	2.50%	-2.92%	-43.06%
NWL	51 Neutral	$2.45B	―	-8.42%	4.85%	-5.29%	9.72%
HELE	49 Neutral	$551.62M	5.74	-23.99%	―	-4.39%	-326.42%