EDGEWELL PERSONAL CARE CO (EPC) Stock Fundamental Analysis
NYSE:EPC - New York Stock Exchange, Inc. - US28035Q1022 - Common Stock - Currency: USD
Taking everything into account, EPC scores 5 out of 10 in our fundamental rating. EPC was compared to 35 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 has a correct valuation and a medium growth rate.
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.
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's Return On Assets of 2.25% is in line compared to the rest of the industry. EPC outperforms 60.00% of its industry peers.
EPC has a better Return On Equity (5.59%) than 68.57% of its industry peers.
EPC has a Return On Invested Capital of 6.88%. This is in the better half of the industry: EPC outperforms 62.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EPC is significantly below the industry average of 15.14%.
The last Return On Invested Capital (6.88%) for EPC is above the 3 year average (6.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.25% | ||
| ROE | 5.59% | ||
| ROIC | 6.88% |
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 Profit Margin of 3.81%. This is in the better half of the industry: EPC outperforms 62.86% of its industry peers.
EPC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.69%, EPC is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
EPC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 43.06%, EPC is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
EPC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.69% | ||
| PM (TTM) | 3.81% | ||
| GM | 43.06% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EPC is still creating some value.
EPC has less shares outstanding than it did 1 year ago.
EPC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EPC has an improved debt to assets ratio.
2.2 Solvency
EPC has an Altman-Z score of 1.73. This is a bad value and indicates that EPC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.73, EPC is doing worse than 65.71% of the companies in the same industry.
EPC has a debt to FCF ratio of 45.63. This is a negative value and a sign of low solvency as EPC would need 45.63 years to pay back of all of its debts.
EPC has a Debt to FCF ratio (45.63) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.96 indicates that EPC is somewhat dependend on debt financing.
EPC's Debt to Equity ratio of 0.96 is on the low side compared to the rest of the industry. EPC is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 45.63 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.09
WACC6.3%
2.3 Liquidity
A Current Ratio of 1.89 indicates that EPC should not have too much problems paying its short term obligations.
EPC has a Current ratio of 1.89. This is comparable to the rest of the industry: EPC outperforms 51.43% of its industry peers.
EPC has a Quick Ratio of 1.89. 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 0.93, EPC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
EPC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.13%.
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.
The Revenue has decreased by -2.11% in the past year.
The Revenue has been growing slightly by 1.03% on average over the past years.
EPS 1Y (TTM)2.13%
EPS 3Y0.33%
EPS 5Y-2.48%
EPS Q2Q%-1.14%
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.59%
Revenue growth 5Y1.03%
Sales Q2Q%-3.12%
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 3.69% on average per year.
The Revenue is expected to grow by 1.28% on average over the next years.
EPS Next Y-3.46%
EPS Next 2Y0.52%
EPS Next 3Y3.69%
EPS Next 5YN/A
Revenue Next Year-0.87%
Revenue Next 2Y0.72%
Revenue Next 3Y1.28%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.41 indicates a reasonable valuation of EPC.
Based on the Price/Earnings ratio, EPC is valued cheaper than 97.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of EPC to the average of the S&P500 Index (27.30), we can say EPC is valued rather cheaply.
A Price/Forward Earnings ratio of 8.76 indicates a reasonable valuation of EPC.
94.29% of the companies in the same industry are more expensive than EPC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. EPC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.41 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
82.86% of the companies in the same industry are more expensive than EPC, based on the Enterprise Value to EBITDA ratio.
EPC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.83 | ||
| EV/EBITDA | 6.84 |
4.3 Compensation for Growth
The decent profitability rating of EPC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.52%
EPS Next 3Y3.69%
5. Dividend
5.1 Amount
EPC has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.67, EPC pays a bit more dividend than its industry peers.
EPC's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
The dividend of EPC decreases each year by -20.86%.
EPC has been paying a dividend for at least 10 years, so it has 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
35.54% of the earnings are spent on dividend by EPC. This is a low number and sustainable payout ratio.
DP35.54%
EPS Next 2Y0.52%
EPS Next 3Y3.69%
27.1
+0.34 (+1.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners103.98%
Inst Owner Change0%
Ins Owners1.34%
Ins Owner Change0.94%
Market Cap1.27B
Analysts72.31
Price Target33.02 (21.85%)
Short Float %6.14%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend0.62
Dividend Growth(5Y)-20.86%
DP35.54%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.51%
Min EPS beat(2)-40.7%
Max EPS beat(2)-4.32%
EPS beat(4)2
Avg EPS beat(4)-4.73%
Min EPS beat(4)-40.7%
Max EPS beat(4)19.54%
EPS beat(8)6
Avg EPS beat(8)40.17%
EPS beat(12)10
Avg EPS beat(12)37.73%
EPS beat(16)13
Avg EPS beat(16)29.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)-1.34%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-4.25%
Max Revenue beat(4)-1.34%
Revenue beat(8)1
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-0.85%
Revenue beat(16)5
Avg Revenue beat(16)-0.35%
PT rev (1m)-10.07%
PT rev (3m)-10.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.84%
EPS NY rev (1m)-2.5%
EPS NY rev (3m)-7.44%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.41 | ||
| Fwd PE | 8.76 | ||
| P/S | 0.57 | ||
| P/FCF | 39.83 | ||
| P/OCF | 12.21 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.84 |
EPS(TTM)2.88
EY10.63%
EPS(NY)3.09
Fwd EY11.41%
FCF(TTM)0.68
FCFY2.51%
OCF(TTM)2.22
OCFY8.19%
SpS47.3
BVpS32.19
TBVpS-15.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.25% | ||
| ROE | 5.59% | ||
| ROCE | 8.72% | ||
| ROIC | 6.88% | ||
| ROICexc | 7.26% | ||
| ROICexgc | 27.04% | ||
| OM | 12.69% | ||
| PM (TTM) | 3.81% | ||
| GM | 43.06% | ||
| FCFM | 1.44% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 45.63 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 83.6% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 28.31% | ||
| Profit Quality | 37.78% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.73 |
F-Score6
WACC6.3%
ROIC/WACC1.09
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)2.13%
EPS 3Y0.33%
EPS 5Y-2.48%
EPS Q2Q%-1.14%
EPS Next Y-3.46%
EPS Next 2Y0.52%
EPS Next 3Y3.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.59%
Revenue growth 5Y1.03%
Sales Q2Q%-3.12%
Revenue Next Year-0.87%
Revenue Next 2Y0.72%
Revenue Next 3Y1.28%
Revenue Next 5YN/A
EBIT growth 1Y-1.05%
EBIT growth 3Y6.6%
EBIT growth 5Y1.78%
EBIT Next Year24.26%
EBIT Next 3Y10.4%
EBIT Next 5YN/A
FCF growth 1Y-65.81%
FCF growth 3Y0.44%
FCF growth 5Y5.65%
OCF growth 1Y-27.4%
OCF growth 3Y0.29%
OCF growth 5Y3.92%