EDGEWELL PERSONAL CARE CO (EPC) Stock Fundamental Analysis
NYSE:EPC - New York Stock Exchange, Inc. - US28035Q1022 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to EPC. EPC was compared to 37 industry peers in the Personal Care Products industry. EPC has only an average score on both its financial health and profitability. EPC is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year EPC was profitable.
In the past year EPC had a positive cash flow from operations.
Each year in the past 5 years EPC has been profitable.
EPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EPC has a Return On Assets (2.48%) which is comparable to the rest of the industry.
EPC has a Return On Equity of 6.11%. This is in the better half of the industry: EPC outperforms 66.67% of its industry peers.
EPC's Return On Invested Capital of 7.56% is fine compared to the rest of the industry. EPC outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPC is significantly below the industry average of 13.42%.
The 3 year average ROIC (6.78%) for EPC is below the current ROIC(7.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 6.11% | ||
| ROIC | 7.56% |
ROA(3y)2.79%
ROA(5y)2.69%
ROE(3y)6.81%
ROE(5y)6.51%
ROIC(3y)6.78%
ROIC(5y)6.8%
1.3 Margins
EPC has a better Profit Margin (4.09%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of EPC has declined.
The Operating Margin of EPC (13.84%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of EPC has remained more or less at the same level.
EPC has a worse Gross Margin (42.96%) than 69.44% of its industry peers.
In the last couple of years the Gross Margin of EPC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.84% | ||
| PM (TTM) | 4.09% | ||
| GM | 42.96% |
OM growth 3Y3.91%
OM growth 5Y0.74%
PM growth 3Y-7.93%
PM growth 5YN/A
GM growth 3Y-1.91%
GM growth 5Y-1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EPC is creating some value.
Compared to 1 year ago, EPC has less shares outstanding
Compared to 5 years ago, EPC has less shares outstanding
EPC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.85 indicates that EPC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EPC (1.85) is worse than 63.89% of its industry peers.
EPC has a debt to FCF ratio of 12.08. This is a negative value and a sign of low solvency as EPC would need 12.08 years to pay back of all of its debts.
EPC has a Debt to FCF ratio (12.08) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.98 indicates that EPC is somewhat dependend on debt financing.
EPC's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. EPC is outperformed by 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.08 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.16
WACC6.54%
2.3 Liquidity
A Current Ratio of 2.06 indicates that EPC has no problem at all paying its short term obligations.
EPC has a Current ratio of 2.06. This is comparable to the rest of the industry: EPC outperforms 55.56% of its industry peers.
EPC has a Quick Ratio of 2.06. This is a bad value and indicates that EPC is not financially healthy enough and could expect problems in meeting its short term obligations.
EPC's Quick ratio of 0.97 is on the low side compared to the rest of the industry. EPC is outperformed by 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.60% over the past year.
EPC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.48% yearly.
Looking at the last year, EPC shows a decrease in Revenue. The Revenue has decreased by -1.24% in the last year.
Measured over the past years, EPC shows a small growth in Revenue. The Revenue has been growing by 1.03% on average per year.
EPS 1Y (TTM)15.6%
EPS 3Y0.33%
EPS 5Y-2.48%
EPS Q2Q%-70.83%
Revenue 1Y (TTM)-1.24%
Revenue growth 3Y2.59%
Revenue growth 5Y1.03%
Sales Q2Q%-2.15%
3.2 Future
Based on estimates for the next years, EPC will show a small growth in Earnings Per Share. The EPS will grow by 6.21% on average per year.
The Revenue is expected to grow by 0.96% on average over the next years.
EPS Next Y4.3%
EPS Next 2Y5.53%
EPS Next 3Y6.21%
EPS Next 5YN/A
Revenue Next Year-1.09%
Revenue Next 2Y0.5%
Revenue Next 3Y0.96%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.64, which indicates a very decent valuation of EPC.
Compared to the rest of the industry, the Price/Earnings ratio of EPC indicates a rather cheap valuation: EPC is cheaper than 88.89% of the companies listed in the same industry.
EPC is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.02, the valuation of EPC can be described as very reasonable.
94.44% of the companies in the same industry are more expensive than EPC, based on the Price/Forward Earnings ratio.
EPC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
86.11% of the companies in the same industry are more expensive than EPC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPC indicates a rather cheap valuation: EPC is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.31 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EPC does not grow enough to justify the current Price/Earnings ratio.
EPC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)N/A
EPS Next 2Y5.53%
EPS Next 3Y6.21%
5. Dividend
5.1 Amount
EPC has a Yearly Dividend Yield of 2.01%.
EPC's Dividend Yield is a higher than the industry average which is at 4.99.
EPC's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of EPC decreases each year by -20.86%.
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)-20.86%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
EPC pays out 33.81% of its income as dividend. This is a sustainable payout ratio.
DP33.81%
EPS Next 2Y5.53%
EPS Next 3Y6.21%
30.75
+0.33 (+1.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners95.22%
Inst Owner Change-0.46%
Ins Owners1.09%
Ins Owner Change7.47%
Market Cap1.50B
Analysts72.31
Price Target36.85 (19.84%)
Short Float %4.24%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.62
Dividend Growth(5Y)-20.86%
DP33.81%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.07%
Min EPS beat(2)-40.7%
Max EPS beat(2)6.56%
EPS beat(4)3
Avg EPS beat(4)1.52%
Min EPS beat(4)-40.7%
Max EPS beat(4)20.68%
EPS beat(8)7
Avg EPS beat(8)48.08%
EPS beat(12)10
Avg EPS beat(12)37.16%
EPS beat(16)14
Avg EPS beat(16)30.54%
Revenue beat(2)0
Avg Revenue beat(2)-2.79%
Min Revenue beat(2)-4.25%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-1.34%
Revenue beat(8)2
Avg Revenue beat(8)-0.66%
Revenue beat(12)3
Avg Revenue beat(12)-0.96%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-3.56%
PT rev (3m)-3.27%
EPS NQ rev (1m)-10.88%
EPS NQ rev (3m)-8.91%
EPS NY rev (1m)-1.87%
EPS NY rev (3m)-2.09%
Revenue NQ rev (1m)-3.4%
Revenue NQ rev (3m)-3.73%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 9.02 | ||
| P/S | 0.67 | ||
| P/FCF | 12.31 | ||
| P/OCF | 7.94 | ||
| P/B | 1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.9 |
EPS(TTM)2.89
EY9.4%
EPS(NY)3.41
Fwd EY11.08%
FCF(TTM)2.5
FCFY8.12%
OCF(TTM)3.87
OCFY12.59%
SpS46.12
BVpS30.86
TBVpS-15.67
PEG (NY)2.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.48% | ||
| ROE | 6.11% | ||
| ROCE | 9.57% | ||
| ROIC | 7.56% | ||
| ROICexc | 7.98% | ||
| ROICexgc | 29.7% | ||
| OM | 13.84% | ||
| PM (TTM) | 4.09% | ||
| GM | 42.96% | ||
| FCFM | 5.42% |
ROA(3y)2.79%
ROA(5y)2.69%
ROE(3y)6.81%
ROE(5y)6.51%
ROIC(3y)6.78%
ROIC(5y)6.8%
ROICexc(3y)7.24%
ROICexc(5y)7.51%
ROICexgc(3y)31.2%
ROICexgc(5y)32.69%
ROCE(3y)8.57%
ROCE(5y)8.6%
ROICexcg growth 3Y2.36%
ROICexcg growth 5Y-5.17%
ROICexc growth 3Y2.93%
ROICexc growth 5Y-2.28%
OM growth 3Y3.91%
OM growth 5Y0.74%
PM growth 3Y-7.93%
PM growth 5YN/A
GM growth 3Y-1.91%
GM growth 5Y-1%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.08 | ||
| Debt/EBITDA | 3.69 | ||
| Cap/Depr | 76.61% | ||
| Cap/Sales | 2.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.36% | ||
| Profit Quality | 132.5% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 1.85 |
F-Score6
WACC6.54%
ROIC/WACC1.16
Cap/Depr(3y)60.37%
Cap/Depr(5y)60.01%
Cap/Sales(3y)2.43%
Cap/Sales(5y)2.49%
Profit Quality(3y)122.83%
Profit Quality(5y)157.84%
High Growth Momentum
Growth
EPS 1Y (TTM)15.6%
EPS 3Y0.33%
EPS 5Y-2.48%
EPS Q2Q%-70.83%
EPS Next Y4.3%
EPS Next 2Y5.53%
EPS Next 3Y6.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.24%
Revenue growth 3Y2.59%
Revenue growth 5Y1.03%
Sales Q2Q%-2.15%
Revenue Next Year-1.09%
Revenue Next 2Y0.5%
Revenue Next 3Y0.96%
Revenue Next 5YN/A
EBIT growth 1Y31.03%
EBIT growth 3Y6.6%
EBIT growth 5Y1.78%
EBIT Next Year32.98%
EBIT Next 3Y13.26%
EBIT Next 5YN/A
FCF growth 1Y233.79%
FCF growth 3Y0.44%
FCF growth 5Y5.65%
OCF growth 1Y98.84%
OCF growth 3Y0.29%
OCF growth 5Y3.92%