EPC

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Data sources: market data, fundamentals, news providers. Data may be delayed.

Key Statistics

MoonshotScore Breakdown: 51.0/100

📰 Latest News

Edgewell Personal Care offers a diverse portfolio of personal care products across wet shave, sun and skin care, and feminine care, providing a stable dividend yield of 2.89% and a wide range of trusted brands, positioning it as a steady player in the consumer defensive sector.

About EPC

Edgewell Personal Care Company manufactures and markets personal care products globally, operating through Wet Shave, Sun and Skin Care, and Feminine Care segments. With a history dating back to 1772, the company offers a diverse portfolio of well-known brands.

Edgewell Personal Care Company Company Overview

Edgewell Personal Care Company, tracing its roots back to 1772, has evolved into a global manufacturer and marketer of personal care products. Formerly known as Energizer Holdings, Inc., the company rebranded in June 2015 to focus on its personal care portfolio. Edgewell operates through three primary segments: Wet Shave, Sun and Skin Care, and Feminine Care. The Wet Shave segment, featuring brands like Schick and Wilkinson Sword, provides razor systems and disposable shave products for both men and women. The Sun and Skin Care segment offers a range of sun protection, tanning, and skincare products under the Banana Boat, Hawaiian Tropic, Bulldog, Jack Black, and Cremo brands, along with Wet Ones antibacterial wipes. The Feminine Care segment includes tampons under the Playtex and o.b. brands, and pads and liners under the Stayfree and Carefree brands. Headquartered in Shelton, Connecticut, Edgewell leverages its established brand portfolio and global distribution network to maintain a competitive presence in the consumer defensive sector. The company's diverse product offerings cater to a broad consumer base, providing essential personal care solutions across various demographics and geographic regions.

Investment Thesis

Edgewell Personal Care presents a compelling investment opportunity due to its established brand portfolio and consistent dividend yield of 2.89%. The company's diverse product segments, including Wet Shave, Sun and Skin Care, and Feminine Care, provide resilience against fluctuating consumer preferences. While the current P/E ratio of 37.99 indicates a premium valuation, strategic initiatives to optimize operational efficiency and expand market reach could drive future growth. Key value drivers include sustained demand for personal care essentials and successful innovation in product development. Upcoming catalysts include potential expansion into emerging markets and continued focus on cost management to improve profitability. Investors should consider EPC for its stability and potential for long-term value creation.

Key Financial Highlights

• Market capitalization of $0.97 billion reflects Edgewell's current valuation in the market.
• P/E ratio of 37.99 indicates the price investors are willing to pay for each dollar of Edgewell's earnings.
• Gross margin of 41.6% demonstrates Edgewell's ability to manage production costs effectively.
• Dividend yield of 2.89% offers investors a steady income stream.
• Beta of 0.63 suggests lower volatility compared to the overall market, indicating a relatively stable investment.

Industry Context

Edgewell Personal Care operates within the competitive household and personal products industry, characterized by evolving consumer preferences and intense competition. The global personal care market is projected to continue growing, driven by increasing disposable incomes and a rising awareness of personal hygiene and grooming. Edgewell competes with major players like AVO, HLF, JBSS, NGVC, and NUS, as well as smaller niche brands. The company's success depends on its ability to innovate, adapt to changing consumer trends, and maintain strong brand recognition. Market trends include a growing demand for natural and sustainable products, as well as an increasing focus on e-commerce and direct-to-consumer channels.

Quarterly Financial Summary

Source: Company filings. Data may be delayed.

Growth Opportunities

• Expansion in Emerging Markets: Edgewell has the opportunity to expand its presence in emerging markets, where the demand for personal care products is rapidly growing. By tailoring its product offerings to local preferences and leveraging strategic partnerships, Edgewell can tap into new customer segments and drive revenue growth. The emerging markets personal care market is estimated to reach $200 billion by 2028, presenting a significant opportunity for Edgewell.
• Product Innovation and Development: Investing in research and development to create innovative and differentiated products can drive growth. Focusing on sustainable and eco-friendly formulations can attract environmentally conscious consumers. The market for sustainable personal care products is projected to reach $50 billion by 2027, offering a substantial growth avenue for Edgewell.
• E-commerce and Direct-to-Consumer Channels: Strengthening its online presence and expanding its direct-to-consumer channels can enhance customer engagement and drive sales. By offering personalized experiences and exclusive products online, Edgewell can build brand loyalty and capture a larger share of the e-commerce market. The global e-commerce market for personal care products is expected to reach $150 billion by 2026.
• Strategic Acquisitions and Partnerships: Pursuing strategic acquisitions and partnerships can expand Edgewell's product portfolio and geographic reach. Acquiring complementary brands or partnering with innovative startups can accelerate growth and enhance competitiveness. The market for personal care acquisitions is active, with numerous opportunities to consolidate and strengthen market position.
• Focus on Men's Grooming: The men's grooming market is experiencing significant growth, driven by increasing awareness of personal appearance and a wider range of product offerings. Edgewell can capitalize on this trend by expanding its Bulldog, Jack Black, and Cremo brands and introducing new products tailored to men's grooming needs. The global men's grooming market is projected to reach $115 billion by 2028.

Competitive Advantages

• Established brand portfolio with well-known names like Schick, Wilkinson Sword, Banana Boat, and Playtex.
• Global distribution network providing access to a wide range of markets.
• Strong relationships with retailers and distributors.
• Continuous product innovation and development to meet evolving consumer needs.

Strengths

• Strong brand recognition and loyalty.
• Diverse product portfolio across multiple personal care segments.
• Global distribution network and market presence.
• Consistent dividend payout to shareholders.

Weaknesses

• Relatively low profit margin of 1.1%.
• High P/E ratio compared to some competitors.
• Dependence on established brands; limited disruptive innovation.
• Exposure to fluctuations in raw material costs.

Opportunities

• Expansion into emerging markets with growing personal care demand.
• Increased focus on sustainable and eco-friendly products.
• Growth in e-commerce and direct-to-consumer sales channels.
• Strategic acquisitions to expand product portfolio and market share.

Threats

• Intense competition from established players and emerging brands.
• Changing consumer preferences and trends.
• Economic downturns affecting consumer spending.
• Regulatory changes and compliance requirements.

What EPC Does

• Manufactures and markets razor systems and disposable shave products for men and women.
• Offers sun protection, tanning, and skincare products.
• Provides feminine care products, including tampons, pads, and liners.
• Sells antibacterial hand wipes and hand sanitizers.
• Markets skincare and grooming products for men.
• Operates through Wet Shave, Sun and Skin Care, and Feminine Care segments.

Business Model

• Develops and manufactures personal care products.
• Distributes products through retail channels, e-commerce platforms, and direct-to-consumer channels.
• Generates revenue through the sale of its branded products.
• Invests in marketing and advertising to build brand awareness and drive sales.

Key Customers

• Men and women seeking shaving and grooming products.
• Consumers looking for sun protection and skincare solutions.
• Women purchasing feminine care products.
• Individuals seeking hand sanitizing and hygiene products.

Competitors

• Avon Products (AVO): Focuses on direct selling of beauty and personal care products.
• Herbalife Nutrition (HLF): Specializes in nutrition and weight management products.
• JBS S.A. (JBSS): Primarily a food processing company with some personal care offerings.
• Natural Grocers by Vitamin Cottage (NGVC): Retailer of natural and organic groceries and supplements.
• Nu Skin Enterprises (NUS): Develops and distributes anti-aging products.

Catalysts

• Upcoming: Potential expansion into new geographic markets, particularly in Asia and Latin America.
• Ongoing: Continued focus on cost optimization and operational efficiency improvements.
• Ongoing: Product innovation and development of new sustainable and eco-friendly offerings.
• Upcoming: Strategic partnerships and acquisitions to expand product portfolio.

Risks

• Potential: Fluctuations in raw material costs impacting profitability.
• Potential: Changes in consumer preferences and demand for personal care products.
• Ongoing: Intense competition from established players and emerging brands.
• Potential: Economic downturns affecting consumer spending on non-essential items.
• Ongoing: Regulatory changes and compliance requirements in different markets.

FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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