EDGEWELL PERSONAL CARE CO (EPC) Stock Fundamental Analysis
NYSE:EPC - New York Stock Exchange, Inc. - US28035Q1022 - Common Stock - Currency: USD
Overall EPC gets a fundamental rating of 5 out of 10. We evaluated EPC against 35 industry peers in the Personal Care Products industry. EPC has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on EPC.
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
With a Return On Assets value of 2.48%, EPC perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
EPC has a better Return On Equity (6.11%) than 68.57% of its industry peers.
EPC's Return On Invested Capital of 7.56% is fine compared to the rest of the industry. EPC outperforms 68.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPC is significantly below the industry average of 15.96%.
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 62.86% of its industry peers.
EPC's Profit Margin has declined in the last couple of years.
EPC has a better Operating Margin (13.84%) than 74.29% of its industry peers.
In the last couple of years the Operating Margin of EPC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 42.96%, EPC is doing worse than 71.43% of the companies in the same industry.
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
EPC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, EPC has less shares outstanding
EPC has less shares outstanding than it did 5 years ago.
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 60.00% of its industry peers.
The Debt to FCF ratio of EPC is 12.08, which is on the high side as it means it would take EPC, 12.08 years of fcf income to pay off all of its debts.
EPC has a Debt to FCF ratio of 12.08. This is comparable to the rest of the industry: EPC outperforms 51.43% of its industry peers.
EPC has a Debt/Equity ratio of 0.98. This is a neutral value indicating EPC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, EPC is not doing good in the industry: 74.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 12.08 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.16
WACC6.53%
2.3 Liquidity
A Current Ratio of 2.06 indicates that EPC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.06, EPC is doing good in the industry, outperforming 62.86% of the companies in the same industry.
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 in line compared to the rest of the industry. EPC outperforms 42.86% 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.
The Earnings Per Share has been decreasing by -2.48% on average over the past years.
The Revenue has decreased by -1.24% in the past year.
EPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.03% yearly.
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
EPC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.97% yearly.
The Revenue is expected to grow by 0.98% on average over the next years.
EPS Next Y4.22%
EPS Next 2Y5.45%
EPS Next 3Y5.97%
EPS Next 5YN/A
Revenue Next Year-1.09%
Revenue Next 2Y0.5%
Revenue Next 3Y0.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 10.53, the valuation of EPC can be described as reasonable.
Based on the Price/Earnings ratio, EPC is valued a bit cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.33. EPC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.94 indicates a reasonable valuation of EPC.
EPC's Price/Forward Earnings ratio is rather cheap when compared to the industry. EPC is cheaper than 82.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, EPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPC is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
82.86% of the companies in the same industry are more expensive than EPC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.18 | ||
| EV/EBITDA | 6.85 |
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.
The decent profitability rating of EPC may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)N/A
EPS Next 2Y5.45%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
EPC has a Yearly Dividend Yield of 2.00%.
EPC's Dividend Yield is a higher than the industry average which is at 5.77.
Compared to the average S&P500 Dividend Yield of 2.51, EPC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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
33.81% of the earnings are spent on dividend by EPC. This is a low number and sustainable payout ratio.
DP33.81%
EPS Next 2Y5.45%
EPS Next 3Y5.97%
30.42
+0.41 (+1.37%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners98.82%
Inst Owner Change0.15%
Ins Owners1.29%
Ins Owner Change7.47%
Market Cap1.48B
Analysts72.31
Price Target36.85 (21.14%)
Short Float %4.86%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)0%
PT rev (3m)-14.24%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-10.65%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-1.94%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-3.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 8.94 | ||
| P/S | 0.66 | ||
| P/FCF | 12.18 | ||
| P/OCF | 7.86 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.85 |
EPS(TTM)2.89
EY9.5%
EPS(NY)3.4
Fwd EY11.18%
FCF(TTM)2.5
FCFY8.21%
OCF(TTM)3.87
OCFY12.73%
SpS46.12
BVpS30.86
TBVpS-15.67
PEG (NY)2.5
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
WACC6.53%
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 Y4.22%
EPS Next 2Y5.45%
EPS Next 3Y5.97%
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 3Y0.98%
Revenue Next 5YN/A
EBIT growth 1Y31.03%
EBIT growth 3Y6.6%
EBIT growth 5Y1.78%
EBIT Next Year31.88%
EBIT Next 3Y11.65%
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%