Energizer Holdings, Inc., together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide.
The last earnings update was 77 days ago.
Discounted Cash Flow Calculation for DB:EGG using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:EGG DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Energizer Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
Energizer Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Energizer Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Energizer Holdings's earnings are expected to grow significantly at over 20% yearly.
Energizer Holdings's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Energizer Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Energizer Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Energizer Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Energizer Holdings's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Energizer Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is not covered by short term assets, assets are 0.9x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Alan R. Hoskins has been the President and Chief Executive Officer at Energizer Holdings, Inc since July 2015. Mr. Hoskins has been with Energizer for over 33 years, serving in a variety of senior leadership roles throughout the business. He served as the Chief Executive Officer and President of Energizer Household Products at Edgewell Personal Care Company from April 16, 2012 to June 2015. Mr. Hoskins served as Vice President of Asia-Pacific, Africa & Middle East at Edgewell Personal Care Company 2008 to 2011 and led a culturally diverse organization of almost 7,000 commercial and manufacturing colleagues serving over 100 countries in developed and emerging markets. He has broad experience in senior leadership positions throughout Energizer. Mr. Hoskins held numerous leadership positions at Edgewell Personal Care Company, including serving as Vice President of North America Household Products Division from 2005 to 2008; Vice President of Sales and Trade Marketing from 1999 to 2005, Director of Brand Marketing from 1996 to 1999 and Chief Customer Officer and Vice President of Customer Business Development. He started his career at Union Carbide in 1983 following several years in the retailer, wholesaler and broker industry. He has been a Director at Energizer Holdings, Inc since July 2015. He serves on the Board of Directors of the Retail Leaders Industry Association. Mr. Hoskins holds a B.S. in Business Administration and Marketing from Western New England University, a Masters of Business Administration from Webster University and completed the Senior Executive Program at Columbia University.
Alan's compensation has been consistent with company performance over the past year.
Alan's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Energizer Holdings management team is about average.
CEO, President & Director
Executive VP & COO
VP & General Counsel
Executive VP & Chief Supply Chain Officer
CTO & VP of Research and Development
Vice President of Investor Relations
Vice President of Global Marketing
Chief Human Resources Officer
Chief Strategy Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Energizer Holdings board of directors is about average.
Energizer Holdings, Inc., together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide batteries under the Energizer and Eveready brands, as well as primary, rechargeable, specialty, and hearing aid products. The company also provides headlights, lanterns, children’s lights, and area lights, as well as flash lights under the Energizer, Eveready, Hard Case, Dolphin, and WeatherReady brands. In addition, it licenses the Energizer and Eveready brands to companies developing consumer solutions in gaming, automotive batteries, portable power for critical devices, LED light bulbs, and other lighting products. Further, the company designs and markets automotive fragrance and appearance products under the Nu Finish, Scratch Doctor, Refresh Your Car!, California Scents, Driven, Bahama & Co., LEXOL, and Eagle One brands. It sells its products through direct sales force, third party distributors, and wholesalers; and through various retail locations, including mass merchandisers and warehouse clubs, food stores, drug and convenience stores, electronics specialty stores and department stores, hardware and automotive centers, military stores, and brick and mortar retailers, as well as through e-commerce. Energizer Holdings, Inc. is headquartered in St. Louis, Missouri.
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