EDGEWELL PERSONAL CARE CO (EPC) Stock Fundamental Analysis
USA - NYSE:EPC - US28035Q1022 - Common Stock
20.83 USD
-0.44 (-2.07%)
20.83 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. While EPC is still in line with the averages on profitability rating, there are concerns on its financial health. EPC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year EPC was profitable.
EPC had a positive operating cash flow in the past year.
EPC had positive earnings in each of the past 5 years.
Each year in the past 5 years EPC had a positive operating cash flow.
1.2 Ratios
EPC has a Return On Assets (1.71%) which is in line with its industry peers.
With a decent Return On Equity value of 4.13%, EPC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.92%, EPC is doing good in the industry, outperforming 61.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EPC is significantly below the industry average of 12.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 4.13% | ||
| ROIC | 5.92% |
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 2.94% is in line compared to the rest of the industry. EPC outperforms 58.33% of its industry peers.
In the last couple of years the Profit Margin of EPC has declined.
Looking at the Operating Margin, with a value of 10.96%, EPC is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
EPC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 42.50%, EPC is doing worse than 69.44% 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 | 10.96% | ||
| PM (TTM) | 2.94% | ||
| GM | 42.5% |
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
The number of shares outstanding for EPC has been reduced compared to 5 years ago.
The debt/assets ratio for EPC has been reduced compared to a year ago.
2.2 Solvency
EPC has an Altman-Z score of 1.61. This is a bad value and indicates that EPC is not financially healthy and even has some risk of bankruptcy.
EPC has a Altman-Z score of 1.61. This is in the lower half of the industry: EPC underperforms 66.67% of its industry peers.
EPC has a debt to FCF ratio of 32.69. This is a negative value and a sign of low solvency as EPC would need 32.69 years to pay back of all of its debts.
EPC has a Debt to FCF ratio (32.69) which is in line with its industry peers.
EPC has a Debt/Equity ratio of 0.89. This is a neutral value indicating EPC is somewhat dependend on debt financing.
EPC has a Debt to Equity ratio of 0.89. This is in the lower half of the industry: EPC underperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 32.69 | ||
| Altman-Z | 1.61 |
ROIC/WACC1
WACC5.9%
2.3 Liquidity
A Current Ratio of 1.77 indicates that EPC should not have too much problems paying its short term obligations.
EPC has a Current ratio (1.77) which is in line with its industry peers.
EPC has a Quick Ratio of 1.77. 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 has a Quick ratio of 0.91. This is in the lower half of the industry: EPC underperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for EPC have decreased strongly by -15.69% in the last 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.
EPC shows a decrease in Revenue. In the last year, the revenue decreased by -2.92%.
EPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.03% yearly.
EPS 1Y (TTM)-15.69%
EPS 3Y0.33%
EPS 5Y-2.48%
EPS Q2Q%-24.59%
Revenue 1Y (TTM)-2.92%
Revenue growth 3Y2.59%
Revenue growth 5Y1.03%
Sales Q2Q%-3.18%
3.2 Future
The Earnings Per Share is expected to grow by 0.16% on average over the next years.
The Revenue is expected to grow by 0.49% on average over the next years.
EPS Next Y-12.39%
EPS Next 2Y-4.81%
EPS Next 3Y0.16%
EPS Next 5YN/A
Revenue Next Year-2.22%
Revenue Next 2Y0.02%
Revenue Next 3Y0.49%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.07, which indicates a very decent valuation of EPC.
EPC's Price/Earnings ratio is rather cheap when compared to the industry. EPC is cheaper than 94.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. EPC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.51, the valuation of EPC can be described as very cheap.
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.
When comparing the Price/Forward Earnings ratio of EPC to the average of the S&P500 Index (22.70), we can say EPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EPC is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
EPC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EPC is cheaper than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.66 | ||
| EV/EBITDA | 6.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.81%
EPS Next 3Y0.16%
5. Dividend
5.1 Amount
EPC has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
EPC's Dividend Yield is rather good when compared to the industry average which is at 5.51. EPC pays more dividend than 80.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, EPC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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 45.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP45.99%
EPS Next 2Y-4.81%
EPS Next 3Y0.16%
20.83
-0.44 (-2.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners103.39%
Inst Owner Change-2.61%
Ins Owners1.34%
Ins Owner Change0%
Market Cap967.76M
Analysts73.33
Price Target28.69 (37.73%)
Short Float %5.43%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend0.62
Dividend Growth(5Y)-20.86%
DP45.99%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.84%
Min EPS beat(2)-9.36%
Max EPS beat(2)-4.32%
EPS beat(4)1
Avg EPS beat(4)-11.96%
Min EPS beat(4)-40.7%
Max EPS beat(4)6.56%
EPS beat(8)5
Avg EPS beat(8)36.62%
EPS beat(12)9
Avg EPS beat(12)35.11%
EPS beat(16)12
Avg EPS beat(16)28.29%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-5.4%
Max Revenue beat(2)-2.69%
Revenue beat(4)0
Avg Revenue beat(4)-3.42%
Min Revenue beat(4)-5.4%
Max Revenue beat(4)-1.34%
Revenue beat(8)1
Avg Revenue beat(8)-2.16%
Revenue beat(12)2
Avg Revenue beat(12)-1.35%
Revenue beat(16)4
Avg Revenue beat(16)-1.07%
PT rev (1m)-13.46%
PT rev (3m)-13.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.56%
EPS NY rev (1m)-9.26%
EPS NY rev (3m)-11.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-1.23%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 7.51 | ||
| P/S | 0.44 | ||
| P/FCF | 22.66 | ||
| P/OCF | 8.2 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.52 |
EPS(TTM)2.58
EY12.39%
EPS(NY)2.77
Fwd EY13.31%
FCF(TTM)0.92
FCFY4.41%
OCF(TTM)2.54
OCFY12.19%
SpS47.44
BVpS33.75
TBVpS-15.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 4.13% | ||
| ROCE | 7.49% | ||
| ROIC | 5.92% | ||
| ROICexc | 6.31% | ||
| ROICexgc | 24.74% | ||
| OM | 10.96% | ||
| PM (TTM) | 2.94% | ||
| GM | 42.5% | ||
| FCFM | 1.94% |
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-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 32.69 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 86.55% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.91% | ||
| Profit Quality | 65.9% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.61 |
F-Score4
WACC5.9%
ROIC/WACC1
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)-15.69%
EPS 3Y0.33%
EPS 5Y-2.48%
EPS Q2Q%-24.59%
EPS Next Y-12.39%
EPS Next 2Y-4.81%
EPS Next 3Y0.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.92%
Revenue growth 3Y2.59%
Revenue growth 5Y1.03%
Sales Q2Q%-3.18%
Revenue Next Year-2.22%
Revenue Next 2Y0.02%
Revenue Next 3Y0.49%
Revenue Next 5YN/A
EBIT growth 1Y-22.27%
EBIT growth 3Y6.6%
EBIT growth 5Y1.78%
EBIT Next Year24.17%
EBIT Next 3Y10.3%
EBIT Next 5YN/A
FCF growth 1Y-71.11%
FCF growth 3Y0.44%
FCF growth 5Y5.65%
OCF growth 1Y-40.37%
OCF growth 3Y0.29%
OCF growth 5Y3.92%