EDGEWELL PERSONAL CARE CO (EPC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPC - US28035Q1022 - Common Stock
18.79 USD
-0.44 (-2.29%)
18.79 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to EPC. EPC was compared to 36 industry peers in the Personal Care Products industry. There are concerns on the financial health of EPC while its profitability can be described as average. EPC has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- EPC had positive earnings in the past year.
- In the past year EPC had a positive cash flow from operations.
- Each year in the past 5 years EPC has been profitable.
- In the past 5 years EPC always reported a positive cash flow from operatings.
1.2 Ratios
- EPC's Return On Assets of 0.68% is in line compared to the rest of the industry. EPC outperforms 52.78% of its industry peers.
- Looking at the Return On Equity, with a value of 1.64%, EPC is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
- The Return On Invested Capital of EPC (5.24%) is better than 61.11% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EPC is significantly below the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 1.64% | ||
| ROIC | 5.24% |
ROA(3y)2.13%
ROA(5y)2.44%
ROE(3y)5.1%
ROE(5y)5.89%
ROIC(3y)6.76%
ROIC(5y)6.7%
1.3 Margins
- EPC has a Profit Margin (1.14%) which is in line with its industry peers.
- EPC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 9.31%, EPC is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
- In the last couple of years the Operating Margin of EPC has declined.
- Looking at the Gross Margin, with a value of 41.60%, EPC is doing worse than 66.67% of the companies in the same industry.
- EPC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 1.14% | ||
| GM | 41.6% |
OM growth 3Y-3.61%
OM growth 5Y-5.67%
PM growth 3Y-36.87%
PM growth 5Y-19.91%
GM growth 3Y1.04%
GM growth 5Y-1.57%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EPC is destroying value.
- EPC has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for EPC has been reduced compared to 5 years ago.
- EPC has a worse debt/assets ratio than last year.
2.2 Solvency
- EPC has an Altman-Z score of 1.55. This is a bad value and indicates that EPC is not financially healthy and even has some risk of bankruptcy.
- EPC's Altman-Z score of 1.55 is on the low side compared to the rest of the industry. EPC is outperformed by 63.89% of its industry peers.
- The Debt to FCF ratio of EPC is 34.13, which is on the high side as it means it would take EPC, 34.13 years of fcf income to pay off all of its debts.
- EPC has a Debt to FCF ratio (34.13) which is comparable to the rest of the industry.
- EPC has a Debt/Equity ratio of 0.91. This is a neutral value indicating EPC is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.91, EPC is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 34.13 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.7
WACC7.5%
2.3 Liquidity
- A Current Ratio of 1.76 indicates that EPC should not have too much problems paying its short term obligations.
- EPC's Current ratio of 1.76 is in line compared to the rest of the industry. EPC outperforms 41.67% of its industry peers.
- EPC has a Quick Ratio of 1.76. This is a bad value and indicates that EPC is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.90, EPC is doing worse than 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- EPC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.99%.
- Measured over the past years, EPC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.36% on average per year.
- Looking at the last year, EPC shows a decrease in Revenue. The Revenue has decreased by -1.34% in the last year.
- EPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
EPS 1Y (TTM)-16.99%
EPS 3Y-0.39%
EPS 5Y-1.36%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y0.79%
Revenue growth 5Y2.66%
Sales Q2Q%3.79%
3.2 Future
- EPC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.36% yearly.
- The Revenue is expected to grow by 1.67% on average over the next years.
EPS Next Y-6.49%
EPS Next 2Y0.43%
EPS Next 3Y2.36%
EPS Next 5YN/A
Revenue Next Year1.92%
Revenue Next 2Y1.77%
Revenue Next 3Y1.67%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- EPC is valuated cheaply with a Price/Earnings ratio of 7.40.
- Based on the Price/Earnings ratio, EPC is valued cheaper than 91.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of EPC to the average of the S&P500 Index (28.60), we can say EPC is valued rather cheaply.
- The Price/Forward Earnings ratio is 7.91, which indicates a rather cheap valuation of EPC.
- EPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. EPC is cheaper than 86.11% of the companies in the same industry.
- EPC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
- EPC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EPC is cheaper than 80.56% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPC indicates a somewhat cheap valuation: EPC is cheaper than 63.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.09 | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.43%
EPS Next 3Y2.36%
5. Dividend
5.1 Amount
- EPC has a Yearly Dividend Yield of 3.10%.
- EPC's Dividend Yield is rather good when compared to the industry average which is at 1.90. EPC pays more dividend than 80.56% of the companies in the same industry.
- EPC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
- The dividend of EPC decreases each year by -16.66%.
- EPC has paid a dividend for at least 10 years, which is a reliable track record.
- EPC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-16.66%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 115.35% of the earnings are spent on dividend by EPC. This is not a sustainable payout ratio.
DP115.35%
EPS Next 2Y0.43%
EPS Next 3Y2.36%
EDGEWELL PERSONAL CARE CO / EPC FAQ
Can you provide the ChartMill fundamental rating for EDGEWELL PERSONAL CARE CO?
ChartMill assigns a fundamental rating of 4 / 10 to EPC.
What is the valuation status of EDGEWELL PERSONAL CARE CO (EPC) stock?
ChartMill assigns a valuation rating of 7 / 10 to EDGEWELL PERSONAL CARE CO (EPC). This can be considered as Undervalued.
What is the profitability of EPC stock?
EDGEWELL PERSONAL CARE CO (EPC) has a profitability rating of 4 / 10.
What are the PE and PB ratios of EDGEWELL PERSONAL CARE CO (EPC) stock?
The Price/Earnings (PE) ratio for EDGEWELL PERSONAL CARE CO (EPC) is 7.4 and the Price/Book (PB) ratio is 0.56.
How financially healthy is EDGEWELL PERSONAL CARE CO?
The financial health rating of EDGEWELL PERSONAL CARE CO (EPC) is 3 / 10.