Edgewell Personal Care (NYSE:EPC) - Share price, News & Analysis

Q: What is the Fair Price of EPC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

EPC ($39.25) is trading below our estimate of [[fair value]] ($59.78)

EPC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	4/6
Financial Health	2/6
Dividends	2/6

EPC Stock Overview

Edgewell Personal Care Company, together with its subsidiaries, manufactures and markets personal care products worldwide.

Rewards

Trading at 34.3% below our estimate of its fair value

Earnings are forecast to grow 17.56% per year

Earnings grew by 16.1% over the past year

Trading below our calculated fair Price-To-Earnings ratio

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Edgewell Personal Care Competitors

Herbalife Nutrition

NYSE:HLF

US$2.1b

Nu Skin Enterprises

NYSE:NUS

US$1.8b

e.l.f. Beauty

NYSE:ELF

US$2.0b

Inter Parfums

NasdaqGS:IPAR

US$2.5b

Price History & Performance

Summary of all time highs, changes and price drops for Edgewell Personal Care
Historical stock prices
Current Share Price	US$39.25
52 Week High	US$51.86
52 Week Low	US$32.00
Beta	0.92
1 Month Change	2.08%
3 Month Change	9.88%
1 Year Change	7.80%
3 Year Change	28.06%
5 Year Change	-45.86%
Change since IPO	67.91%

Recent News & Updates

Sep 15

Edgewell Personal Care gives additional role of President International business to CEO, CFO

Edgewell Personal Care (NYSE:EPC) said on Thursday the role of President for Edgewell's international business will be split between Rod Little, Chief Executive officer and Dan Sullivan, Chief Financial officer, after the departure of Nick Powell. Sullivan will add the role of President Europe and Latin America to his CFO role, effective October 1. Little will lead the Japan and Greater China markets.

Sep 13

Is Edgewell Personal Care (NYSE:EPC) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Aug 31

Edgewell goes ex-dividend tomorrow

Edgewell (NYSE:EPC) had declared $0.15/share quarterly dividend, in line with previous. Payable Oct. 5; for shareholders of record Sept. 2; ex-div Sept. 1. See EPC Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 28

Edgewell Personal Care (NYSE:EPC) Has Affirmed Its Dividend Of $0.15

Edgewell Personal Care Company ( NYSE:EPC ) will pay a dividend of $0.15 on the 5th of October. This means the annual...

Shareholder Returns

	EPC	US Personal Products	US Market
7D	5.3%	-1.0%	1.9%
1Y	7.8%	-31.5%	-18.8%

Return vs Industry: EPC exceeded the US Personal Products industry which returned -31.2% over the past year.

Return vs Market: EPC exceeded the US Market which returned -18.2% over the past year.

Price Volatility

Is EPC's price volatile compared to industry and market?
EPC volatility
EPC Average Weekly Movement	3.4%
Personal Products Industry Average Movement	9.8%
Market Average Movement	7.0%
10% most volatile stocks in US Market	15.5%
10% least volatile stocks in US Market	2.9%

Stable Share Price: EPC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EPC's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1772	6,900	Rod Little	https://edgewell.com

Edgewell Personal Care Company, together with its subsidiaries, manufactures and markets personal care products worldwide. It operates through three segments: Wet shave, Sun and Skin care, and Feminine care. The Wet Shave segment provides razor systems, such as razor handles and refillable blades, and disposable shave products for men and women under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard, and Personna brands.

Edgewell Personal Care Fundamentals Summary

How do Edgewell Personal Care's earnings and revenue compare to its market cap?
EPC fundamental statistics
Market Cap	US$2.03b
Earnings (TTM)	US$109.00m
Revenue (TTM)	US$2.18b

18.7x

P/E Ratio

0.9x

P/S Ratio

Is EPC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EPC income statement (TTM)
Revenue	US$2.18b
Cost of Revenue	US$1.27b
Gross Profit	US$906.50m
Other Expenses	US$797.50m
Earnings	US$109.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 15, 2022

Earnings per share (EPS)	2.10
Gross Margin	41.62%
Net Profit Margin	5.00%
Debt/Equity Ratio	93.1%

How did EPC perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

30%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is EPC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EPC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EPC. This is calculated by dividing EPC's market cap by their current preferred multiple.
What is EPC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.03b

EPC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.5x
Enterprise Value/EBITDA	10.6x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does EPC's PE Ratio compare to its peers?

EPC PE Ratio vs Peers

The above table shows the PE ratio for EPC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	30x
HLF Herbalife Nutrition	6.2x	8.4%	US$2.1b
NUS Nu Skin Enterprises	16x	20.7%	US$1.8b
ELF e.l.f. Beauty	73.2x	27.5%	US$2.0b
IPAR Inter Parfums	24.5x	9.8%	US$2.5b
EPC Edgewell Personal Care	18.7x	17.6%	US$2.0b

Price-To-Earnings vs Peers: EPC is good value based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (30x).

Price to Earnings Ratio vs Industry

How does EPC's PE Ratio compare vs other companies in the US Personal Products Industry?

Price-To-Earnings vs Industry: EPC is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the US Personal Products industry average (14.6x)

Price to Earnings Ratio vs Fair Ratio

What is EPC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EPC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.7x
Fair PE Ratio	22.6x

Price-To-Earnings vs Fair Ratio: EPC is good value based on its Price-To-Earnings Ratio (18.7x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).

Share Price vs Fair Value

What is the Fair Price of EPC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EPC ($39.25) is trading below our estimate of fair value ($59.78)

Significantly Below Fair Value: EPC is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Edgewell Personal Care forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EPC's forecast earnings growth (17.6% per year) is above the savings rate (1.9%).

Earnings vs Market: EPC's earnings (17.6% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: EPC's earnings are forecast to grow, but not significantly.

Revenue vs Market: EPC's revenue (1.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: EPC's revenue (1.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EPC's Return on Equity is forecast to be low in 3 years time (10.7%).

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Past Performance

How has Edgewell Personal Care performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

13.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EPC has a large one-off loss of $33.6M impacting its June 30 2022 financial results.

Growing Profit Margin: EPC's current net profit margins (5%) are higher than last year (4.6%).

Past Earnings Growth Analysis

Earnings Trend: EPC has become profitable over the past 5 years, growing earnings by 13.4% per year.

Accelerating Growth: EPC's earnings growth over the past year (16.1%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: EPC earnings growth over the past year (16.1%) exceeded the Personal Products industry -4.8%.

Return on Equity

High ROE: EPC's Return on Equity (7.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Edgewell Personal Care's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: EPC's short term assets ($933.7M) exceed its short term liabilities ($575.1M).

Long Term Liabilities: EPC's short term assets ($933.7M) do not cover its long term liabilities ($1.7B).

Debt to Equity History and Analysis

Debt Level: EPC's net debt to equity ratio (80.8%) is considered high.

Reducing Debt: EPC's debt to equity ratio has increased from 83.5% to 93.1% over the past 5 years.

Debt Coverage: EPC's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: EPC's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

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Dividend

What is Edgewell Personal Care current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.53%

Current Dividend Yield

Dividend Yield vs Market

Edgewell Personal Care Dividend Yield vs Market

How does Edgewell Personal Care dividend yield compare to the market?
Segment	Dividend Yield
Company (Edgewell Personal Care)	1.5%
Market Bottom 25% (US)	1.6%
Market Top 25% (US)	4.5%
Industry Average (Personal Products)	1.3%
Analyst forecast in 3 Years (Edgewell Personal Care)	1.7%

Notable Dividend: EPC's dividend (1.53%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: EPC's dividend (1.53%) is low compared to the top 25% of dividend payers in the US market (4.53%).

Stability and Growth of Payments

Stable Dividend: EPC's dividend payments have been volatile in the past 10 years.

Growing Dividend: EPC's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.6%), EPC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.4%), EPC's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure

CEO

Rod Little (53 yo)

3.58yrs

Tenure

US$8,104,026

Compensation

Mr. Rod R. Little serves as President of Japan and Greater China of Edgewell Personal Care Company since October 1, 2022. He has been the President, Chief Executive Officer and Director of Edgewell Persona...

CEO Compensation Analysis

Rod Little's Compensation vs Edgewell Personal Care Earnings

How has Rod Little's remuneration changed compared to Edgewell Personal Care's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	US$109m
Mar 31 2022	n/a	n/a	US$119m
Dec 31 2021	n/a	n/a	US$111m
Sep 30 2021	US$8m	US$1m	US$117m
Jun 30 2021	n/a	n/a	US$94m
Mar 31 2021	n/a	n/a	US$58m
Dec 31 2020	n/a	n/a	US$63m
Sep 30 2020	US$6m	US$992k	US$68m
Jun 30 2020	n/a	n/a	US$87m
Mar 31 2020	n/a	n/a	-US$378m
Dec 31 2019	n/a	n/a	-US$349m
Sep 30 2019	US$7m	US$821k	-US$372m
Jun 30 2019	n/a	n/a	-US$393m
Mar 31 2019	n/a	n/a	US$79m
Dec 31 2018	n/a	n/a	US$96m
Sep 30 2018	US$2m	US$409k	US$103m

Compensation vs Market: Rod's total compensation ($USD8.10M) is above average for companies of similar size in the US market ($USD5.48M).

Compensation vs Earnings: Rod's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: EPC's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: EPC's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

NYSE:EPC Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Shares	Max Price
15 Mar 22	SellUS$258,990	Eric O'Toole	Individual	7,000	US$37.00
01 Mar 22	SellUS$133,103	Carla Hendra	Individual	3,799	US$35.04
22 Dec 21	SellUS$93,501	Anne-Sophie Gaget	Individual	2,082	US$44.91
16 Nov 21	SellUS$311,720	Carla Hendra	Individual	7,100	US$43.90
16 Nov 21	SellUS$215,339	Anne-Sophie Gaget	Individual	4,970	US$43.33

Ownership Breakdown

What is the ownership structure of EPC?
Owner Type	Number of Shares	Ownership Percentage
Individual Insiders	461,837	0.9%
General Public	1,820,269	3.5%
Institutions	49,544,108	95.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 77.27% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
16.45%	BlackRock, Inc.	8,522,840	$334.5m	-0.29%	0.01%
11.81%	The Vanguard Group, Inc.	6,119,797	$240.2m	-1.55%	0.01%
6.16%	American Century Investment Management Inc	3,193,535	$125.3m	2.08%	0.09%
5.86%	GAMCO Investors, Inc.	3,037,614	$119.2m	-0.82%	0.5%
5.56%	Dimensional Fund Advisors LP	2,881,444	$113.1m	5.73%	0.03%
3.94%	State Street Global Advisors, Inc.	2,040,406	$80.1m	0.55%	no data
2.75%	LSV Asset Management	1,426,125	$56.0m	-1.42%	0.11%
2.51%	DePrince, Race & Zollo, Inc.	1,302,708	$51.1m	15.8%	1.2%
2.42%	Stichting Pensioenfonds ABP	1,252,950	$49.2m	-10.98%	0.07%
2.2%	Brandes Investment Partners, LP	1,140,270	$44.8m	-4.9%	0.5%
1.94%	William Blair Investment Management, LLC	1,006,016	$39.5m	-2.47%	0.07%
1.79%	Geode Capital Management, LLC	927,142	$36.4m	-2.43%	no data
1.71%	Alberta Investment Management Corporation	886,798	$34.8m	12.71%	0.25%
1.55%	FMR LLC	801,893	$31.5m	70.36%	no data
1.36%	Charles Schwab Investment Management, Inc.	705,791	$27.7m	3.77%	0.01%
1.23%	BNY Mellon Asset Management	636,222	$25.0m	-4.65%	0.01%
1.22%	Edmond De Rothschild Asset Management (France)	630,000	$24.7m	0%	0.38%
1.12%	Northern Trust Global Investments	578,860	$22.7m	-2.25%	no data
1.06%	J.P. Morgan Asset Management, Inc.	548,616	$21.5m	47.12%	no data
0.9%	AHL Partners LLP	466,162	$18.3m	3197.93%	0.36%
0.87%	Woodline Partners LP	449,361	$17.6m	-39.95%	0.28%
0.78%	Russell Investment Management, LLC	402,473	$15.8m	29.68%	0.03%
0.74%	American Beacon Advisors, Inc.	383,991	$15.1m	-26.1%	0.21%
0.69%	Principal Global Investors, LLC	358,839	$14.1m	-8.06%	0.01%
0.67%	SEI Investments Company	346,083	$13.6m	12.44%	0.02%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
EPC	NYSE (New York Stock Exchange)	Yes	Common Stock	US	USD	Mar 2000
EGZ	DB (Deutsche Boerse AG)	Yes	Common Stock	DE	EUR	Mar 2000

Data	Last Updated (UTC time)
Company Analysis	2022/10/05 00:00
End of Day Share Price	2022/10/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/09/30