EDGEWELL PERSONAL CARE CO (EPC) Stock Fundamental Analysis
NYSE:EPC - New York Stock Exchange, Inc. - US28035Q1022 - Common Stock
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 a medium profitability rating, but doesn't score so well on its financial health evaluation. EPC may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years EPC has always been profitable.
EPC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EPC has a better Return On Assets (2.64%) than 61.11% of its industry peers.
EPC's Return On Equity of 6.22% is fine compared to the rest of the industry. EPC outperforms 66.67% of its industry peers.
The Return On Invested Capital of EPC (7.97%) is better than 63.89% of its industry peers.
EPC had an Average Return On Invested Capital over the past 3 years of 6.78%. This is significantly below the industry average of 13.52%.
The last Return On Invested Capital (7.97%) for EPC is above the 3 year average (6.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 6.22% | ||
| ROIC | 7.97% |
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's Profit Margin of 4.38% is fine compared to the rest of the industry. EPC outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of EPC has declined.
With a decent Operating Margin value of 14.18%, EPC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
EPC's Operating Margin has been stable in the last couple of years.
EPC has a worse Gross Margin (43.09%) than 69.44% of its industry peers.
EPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.18% | ||
| PM (TTM) | 4.38% | ||
| GM | 43.09% |
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.
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 better debt/assets ratio than last year.
2.2 Solvency
EPC has an Altman-Z score of 1.87. This is not the best score and indicates that EPC is in the grey zone with still only limited risk for bankruptcy at the moment.
EPC has a worse Altman-Z score (1.87) than 63.89% of its industry peers.
EPC has a debt to FCF ratio of 7.45. This is a slightly negative value and a sign of low solvency as EPC would need 7.45 years to pay back of all of its debts.
EPC has a Debt to FCF ratio (7.45) which is in line with its industry peers.
A Debt/Equity ratio of 0.82 indicates that EPC is somewhat dependend on debt financing.
EPC has a worse Debt to Equity ratio (0.82) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.45 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.18
WACC6.77%
2.3 Liquidity
EPC has a Current Ratio of 1.66. This is a normal value and indicates that EPC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EPC (1.66) is comparable to the rest of the industry.
EPC has a Quick Ratio of 1.66. This is a bad value and indicates that EPC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.81, EPC is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.07% over the past year.
Measured over the past years, EPC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.48% on average per year.
Looking at the last year, EPC shows a small growth in Revenue. The Revenue has grown by 0.09% 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)19.07%
EPS 3Y0.33%
EPS 5Y-2.48%
EPS Q2Q%0%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y2.59%
Revenue growth 5Y1.03%
Sales Q2Q%-3.09%
3.2 Future
EPC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.90% yearly.
The Revenue is expected to grow by 1.84% on average over the next years.
EPS Next Y6.29%
EPS Next 2Y7.23%
EPS Next 3Y8.9%
EPS Next 5YN/A
Revenue Next Year1.13%
Revenue Next 2Y1.73%
Revenue Next 3Y1.84%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
EPC is valuated reasonably with a Price/Earnings ratio of 11.02.
Compared to the rest of the industry, the Price/Earnings ratio of EPC indicates a rather cheap valuation: EPC is cheaper than 91.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of EPC to the average of the S&P500 Index (27.96), we can say EPC is valued rather cheaply.
A Price/Forward Earnings ratio of 10.37 indicates a reasonable valuation of EPC.
EPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. EPC is cheaper than 94.44% of the companies in the same industry.
EPC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
EPC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EPC is cheaper than 86.11% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EPC indicates a rather cheap valuation: EPC is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.42 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of EPC may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)N/A
EPS Next 2Y7.23%
EPS Next 3Y8.9%
5. Dividend
5.1 Amount
EPC has a Yearly Dividend Yield of 1.81%.
Compared to an average industry Dividend Yield of 5.15, EPC pays a bit more dividend than its industry peers.
EPC's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of EPC decreases each year by -20.86%.
EPC has been paying a dividend for over 5 years, so it has already some 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
31.14% of the earnings are spent on dividend by EPC. This is a low number and sustainable payout ratio.
DP31.14%
EPS Next 2Y7.23%
EPS Next 3Y8.9%
EDGEWELL PERSONAL CARE CO
NYSE:EPC (1/17/2025, 8:04:00 PM)
After market: 33.72 0 (0%)33.72
+0.53 (+1.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners95.22%
Inst Owner Change-0.01%
Ins Owners1.09%
Ins Owner Change6.59%
Market Cap1.64B
Analysts72.31
Price Target42.97 (27.43%)
Short Float %4.1%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.62
Dividend Growth(5Y)-20.86%
DP31.14%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.05%
Min EPS beat(2)6.56%
Max EPS beat(2)19.54%
EPS beat(4)4
Avg EPS beat(4)84.08%
Min EPS beat(4)6.56%
Max EPS beat(4)289.55%
EPS beat(8)8
Avg EPS beat(8)59.12%
EPS beat(12)11
Avg EPS beat(12)40.64%
EPS beat(16)15
Avg EPS beat(16)37.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-4.25%
Max Revenue beat(2)-1.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)0.56%
Revenue beat(8)2
Avg Revenue beat(8)-0.58%
Revenue beat(12)3
Avg Revenue beat(12)-0.96%
Revenue beat(16)6
Avg Revenue beat(16)-0.08%
PT rev (1m)0.6%
PT rev (3m)-4.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-63.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 10.37 | ||
| P/S | 0.73 | ||
| P/FCF | 9.42 | ||
| P/OCF | 7.11 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)3.06
EY9.07%
EPS(NY)3.25
Fwd EY9.65%
FCF(TTM)3.58
FCFY10.62%
OCF(TTM)4.74
OCFY14.06%
SpS46.25
BVpS32.51
TBVpS-14.43
PEG (NY)1.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 6.22% | ||
| ROCE | 10.09% | ||
| ROIC | 7.97% | ||
| ROICexc | 8.53% | ||
| ROICexgc | 36.58% | ||
| OM | 14.18% | ||
| PM (TTM) | 4.38% | ||
| GM | 43.09% | ||
| FCFM | 7.74% |
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-Score7
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.45 | ||
| Debt/EBITDA | 3.19 | ||
| Cap/Depr | 64.2% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 56.67% | ||
| Profit Quality | 176.98% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.87 |
F-Score7
WACC6.77%
ROIC/WACC1.18
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)19.07%
EPS 3Y0.33%
EPS 5Y-2.48%
EPS Q2Q%0%
EPS Next Y6.29%
EPS Next 2Y7.23%
EPS Next 3Y8.9%
EPS Next 5YN/A
Revenue 1Y (TTM)0.09%
Revenue growth 3Y2.59%
Revenue growth 5Y1.03%
Sales Q2Q%-3.09%
Revenue Next Year1.13%
Revenue Next 2Y1.73%
Revenue Next 3Y1.84%
Revenue Next 5YN/A
EBIT growth 1Y31.58%
EBIT growth 3Y6.6%
EBIT growth 5Y1.78%
EBIT Next Year34.23%
EBIT Next 3Y13.74%
EBIT Next 5YN/A
FCF growth 1Y4.74%
FCF growth 3Y0.44%
FCF growth 5Y5.65%
OCF growth 1Y6.89%
OCF growth 3Y0.29%
OCF growth 5Y3.92%