Last Updated: 18 Sep 2024
Executive Summary
Edgewell Personal Care Co (EPC) is a leading manufacturer and marketer of personal care products with a strong focus on wet shaving, sun and skin care, and feminine care categories. The company has a global presence and generates significant revenue from both domestic and international markets.
Company Overview
Edgewell Personal Care Co was founded in 1921 and is headquartered in Shelton, Connecticut. The company operates in over 50 countries and employs approximately 6,000 people worldwide. Edgewell's product portfolio includes well-known brands such as Schick, Wilkinson Sword, Banana Boat, Hawaiian Tropic, and Playtex.
Fundamental Analysis
Revenue: EPC's revenue has been relatively stable in recent years, with a slight decline in the latest quarter. The company's revenue is primarily driven by sales of wet shaving products, which account for approximately 50% of total revenue.
Earnings: EPC's earnings per share (EPS) have been impacted by rising input costs and supply chain disruptions. However, the company has implemented cost-cutting measures and is focused on improving efficiency.
Profitability: EPC's profit margin is relatively low compared to industry peers, but the company has been able to maintain profitability through cost control and product innovation.
Valuation: EPC is currently trading at a trailing price-to-earnings (PE) ratio of 15.39, which is in line with industry averages. The company's forward PE ratio of 11.26 suggests that the market expects EPC to experience earnings growth in the future.
Technical Analysis
Price Action: EPC's stock price has been trading within a range between $33.17 and $41.34 over the past year. The stock recently broke below its 50-day moving average, indicating a potential downtrend.
Technical Indicators: The relative strength index (RSI) is currently below 50, suggesting that the stock is oversold. The moving average convergence divergence (MACD) indicator is also indicating a potential reversal in the downtrend.
Short Term Outlook
In the short term, EPC's stock price may experience some volatility due to macroeconomic factors and earnings expectations. The company's ability to manage costs and improve profitability will be key to its performance.
Long Term Outlook
Edgewell Personal Care Co has a strong brand portfolio and a global presence. The company is well-positioned to benefit from the growing demand for personal care products. Long-term investors should consider the company's potential for growth and its ability to maintain profitability.
Analyst Recommendations
Analysts have a mixed view on EPC's stock. Five analysts recommend a "Buy" rating, while three recommend a "Hold" rating and one recommends a "Sell" rating. The average analyst target price is $44.5, implying a potential upside of approximately 22% from the current price.
