EDGEWELL PERSONAL CARE CO (EPC) Stock Fundamental Analysis
NYSE:EPC - New York Stock Exchange, Inc. - US28035Q1022 - Common Stock - Currency: USD
EPC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
EPC had positive earnings in the past year.
EPC had a positive operating cash flow in the past year.
Each year in the past 5 years EPC has been profitable.
In the past 5 years EPC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EPC (2.25%) is comparable to the rest of the industry.
EPC has a better Return On Equity (5.59%) than 68.57% of its industry peers.
EPC's Return On Invested Capital of 6.88% is fine compared to the rest of the industry. EPC outperforms 62.86% of its industry peers.
EPC had an Average Return On Invested Capital over the past 3 years of 6.78%. This 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's Profit Margin of 3.81% is fine compared to the rest of the industry. EPC outperforms 62.86% of its industry peers.
EPC's Profit Margin has declined in the last couple of years.
EPC has a Operating Margin of 12.69%. This is in the better half of the industry: EPC outperforms 74.29% of its industry peers.
EPC's Operating Margin has been stable in the last couple of years.
EPC's Gross Margin of 43.06% is on the low side compared to the rest of the industry. EPC is outperformed by 71.43% of its industry peers.
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 | 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
EPC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
EPC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EPC has been reduced compared to 5 years ago.
EPC has a better debt/assets ratio than last year.
2.2 Solvency
EPC has an Altman-Z score of 1.69. This is a bad value and indicates that EPC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EPC (1.69) is worse than 68.57% of its industry peers.
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's Debt to FCF ratio of 45.63 is in line compared to the rest of the industry. EPC outperforms 48.57% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that EPC is somewhat dependend on debt financing.
EPC has a Debt to Equity ratio of 0.96. This is in the lower half of the industry: EPC underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 45.63 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.89
WACC7.77%
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 (1.89) which is comparable to the rest of the industry.
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.
EPC has a Quick ratio of 0.93. This is in the lower half of the industry: EPC underperforms 60.00% of its industry peers.
| 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%.
EPC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.48% yearly.
Looking at the last year, EPC shows a decrease in Revenue. The Revenue has decreased by -2.11% in the last 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 3.67% on average per year.
Based on estimates for the next years, EPC will show a small growth in Revenue. The Revenue will grow by 1.28% on average per year.
EPS Next Y-0.98%
EPS Next 2Y0.99%
EPS Next 3Y3.67%
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
The Price/Earnings ratio is 8.10, which indicates a very decent valuation of EPC.
Based on the Price/Earnings ratio, EPC is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.57. EPC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.47, which indicates a rather cheap valuation of EPC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EPC indicates a rather cheap valuation: EPC is cheaper than 94.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, EPC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
EPC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EPC is cheaper than 85.71% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EPC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.27 | ||
| EV/EBITDA | 6.4 |
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 2Y0.99%
EPS Next 3Y3.67%
5. Dividend
5.1 Amount
EPC has a Yearly Dividend Yield of 2.42%.
In the last 3 months the price of EPC has falen by -20.71%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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
35.54% of the earnings are spent on dividend by EPC. This is a low number and sustainable payout ratio.
DP35.54%
EPS Next 2Y0.99%
EPS Next 3Y3.67%
23.32
+0.16 (+0.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners103.98%
Inst Owner Change1.68%
Ins Owners1.34%
Ins Owner Change0.94%
Market Cap1.10B
Analysts72.31
Price Target33.02 (41.6%)
Short Float %6.42%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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)-8.39%
EPS NQ rev (3m)-27.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.06%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.47 | ||
| P/S | 0.49 | ||
| P/FCF | 34.27 | ||
| P/OCF | 10.51 | ||
| P/B | 0.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.4 |
EPS(TTM)2.88
EY12.35%
EPS(NY)3.12
Fwd EY13.38%
FCF(TTM)0.68
FCFY2.92%
OCF(TTM)2.22
OCFY9.52%
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 | 1.69 |
F-Score6
WACC7.77%
ROIC/WACC0.89
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-0.98%
EPS Next 2Y0.99%
EPS Next 3Y3.67%
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%