Breaking Down Edgewell Personal Care Company (EPC) Financial Health: Key Insights for Investors

As an investor, are you keeping a close eye on the financial health of Edgewell Personal Care? Recent data reveals a complex picture: While the company faces a 2.1% decrease in net sales, amounting to $478.4 million in the first quarter of fiscal year 2025, there are strategic maneuvers underway aimed at revitalizing its market position. Despite these challenges, Edgewell maintained a quarterly dividend of $0.15 per share, demonstrating a commitment to shareholder value amidst market adjustments. But how will restructuring efforts and a focus on operational efficiencies truly impact Edgewell's long-term financial stability and stock performance? Let's delve into the key insights that can help you make informed decisions.

Edgewell Personal Care Company (EPC) Revenue Analysis

Edgewell Personal Care Company's (EPC) financial health can be better understood by examining its revenue streams, which reveal how the company generates income and how these sources have performed over time.

Here’s a detailed look at Edgewell Personal Care Company's revenue streams:

• Primary Revenue Sources: Edgewell's revenue primarily comes from the sale of personal care products. These include:
  • Shave Preparation: Products like shaving creams, gels, and foams.
  • Razors and Blades: A range of razor systems and replacement blades.
  • Feminine Care: Products such as tampons, pads, and liners.
  • Sun and Skin Care: Items like sunscreens, lotions, and wipes.

Edgewell’s financial performance is detailed in their 2024 Form 10-K filing. According to the filing, net sales for fiscal year 2024 were approximately $2.2 billion.

A geographical breakdown shows the spread of Edgewell's sales across different regions:

• North America: The most substantial portion of net sales comes from North America, totaling $1,248.5 million in 2024.
• International Markets: International markets, including Europe, Latin America, and Asia Pacific, collectively contributed $948.4 million.

The following table provides a detailed breakdown of net sales by segment for the fiscal year 2024 (in millions):

Year-over-year revenue growth rates provide insight into Edgewell's performance trends. In fiscal year 2024, the company reported a net sales increase of 3.4% compared to fiscal year 2023. This growth was influenced by several factors, including increased volume and organic growth across key segments.

Here’s a brief overview of the revenue changes in 2024:

• Wet Shave: Wet shave net sales increased 3.9% compared to the prior year.
• Sun and Skin Care: Sun and Skin Care net sales increased 1.7% compared to the prior year.
• Feminine Care: Feminine Care net sales increased 3.7% compared to the prior year.

Understanding who is investing in Edgewell can offer additional perspective. For more details, consider reading: Exploring Edgewell Personal Care Company (EPC) Investor Profile: Who’s Buying and Why?

Edgewell Personal Care Company (EPC) Profitability Metrics

Assessing Edgewell Personal Care Company's financial health requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets. Let's delve into the gross profit, operating profit, and net profit margins, and analyze their trends over time.

Here's a breakdown of key profitability metrics for Edgewell Personal Care Company:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). It reflects the company's efficiency in managing production costs.
• Operating Profit Margin: This ratio measures the percentage of revenue remaining after deducting both COGS and operating expenses. It reflects the company's efficiency in managing its core business operations.
• Net Profit Margin: This ratio represents the percentage of revenue that translates into net profit after all expenses, including interest and taxes, are considered. It provides a comprehensive view of the company's overall profitability.

To provide a clearer picture, a comparison of profitability ratios with industry averages is essential. This benchmark helps determine whether Edgewell Personal Care Company is performing above, below, or on par with its competitors.

Analysis of operational efficiency also plays a crucial role. This includes examining cost management strategies and trends in gross margins. Effective cost management can lead to improved profitability, while positive trends in gross margins indicate enhanced operational performance.

Here is a table summarizing Edgewell Personal Care Company's key financial data (based on the 2024 fiscal year):

For more insights into Edgewell Personal Care Company's strategic direction, explore their Mission Statement, Vision, & Core Values of Edgewell Personal Care Company (EPC).

Edgewell Personal Care Company (EPC) Debt vs. Equity Structure

Understanding how Edgewell Personal Care Company (EPC) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it balances debt and equity funding.

As of the fiscal year 2024, Edgewell Personal Care Company (EPC) exhibits the following debt profile:

• Total long-term debt: $821.7 million
• Total current liabilities: $438.6 million

The debt-to-equity ratio is a key metric to assess the balance between debt and equity. For Edgewell Personal Care Company (EPC), this ratio can be calculated using the total liabilities and shareholder equity figures. As of the end of 2024 the Company’s debt-to-equity ratio is:

0.99 = ($438.6 million (Total Current Liabilities) + $821.7 million (Total Long-term Debt)) / $1.271 billion (Total Stockholders Equity)

A debt-to-equity ratio of 0.99 indicates that Edgewell Personal Care Company (EPC) has slightly less debt than equity.

Here's a breakdown of Edgewell Personal Care Company's (EPC) debt and equity components:

• Total current liabilities: $438.6 million
• Total long-term debt: $821.7 million
• Total stockholders equity: $1.271 billion

Recent activities, such as debt issuances or refinancing, can significantly impact Edgewell Personal Care Company's (EPC) capital structure. However, I don't have specific details on recent debt issuances, credit ratings, or refinancing activities for Edgewell Personal Care Company (EPC) in fiscal year 2024. For detailed insights into Edgewell Personal Care Company's (EPC) strategic approach, you might find valuable information at: Mission Statement, Vision, & Core Values of Edgewell Personal Care Company (EPC).

Edgewell Personal Care Company (EPC) Liquidity and Solvency

Analyzing Edgewell Personal Care Company's (EPC) financial health requires a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Assessing Edgewell Personal Care Company's Liquidity:

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) can indicate whether a company's short-term financial health is improving or deteriorating.

A review of EPC's liquidity can be better understood by examining these key figures:

These ratios suggest that Edgewell Personal Care Company has maintained a relatively stable liquidity position over the past three years. A current ratio above 1.0 indicates that the company has more current assets than current liabilities. The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity.

Cash Flow Statements Overview:

An examination of Edgewell Personal Care Company's cash flow statements provides further insights into its liquidity. Here’s a summary of cash flow trends:

• Operating Cash Flow: Indicates the cash a company generates from its normal business operations.
• Investing Cash Flow: Shows the cash used for investments in assets.
• Financing Cash Flow: Reveals cash flow related to debt, equity, and dividends.

Key cash flow figures for Edgewell Personal Care Company are as follows (in millions of USD):

Edgewell Personal Care Company demonstrates consistent positive operating cash flow, indicating a healthy ability to generate cash from its core business activities. The negative investing cash flow reflects ongoing investments in the company's asset base, while the negative financing cash flow is primarily due to debt repayments and dividend distributions.

For insights into the company's guiding principles, refer to: Mission Statement, Vision, & Core Values of Edgewell Personal Care Company (EPC).

Edgewell Personal Care Company (EPC) Valuation Analysis

When evaluating whether Edgewell Personal Care Company (EPC) is overvalued or undervalued, several key financial ratios and indicators come into play. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: As of April 2025, Edgewell Personal Care's P/E ratio is approximately 10.38. The P/E ratio for the fiscal quarter ending in December 2024 was reported as 17.06. A lower P/E ratio may suggest that a stock is undervalued, relative to its earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio in April 2025 was 0.9475. For the year 2024, the P/B ratio was 1.15. A P/B ratio of less than 1 could indicate that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio as of April 2025 is 8.15. The EV/EBITDA ratio for the year 2024 was 9.24. Generally, a lower EV/EBITDA ratio might suggest that a company is undervalued compared to its peers.

Stock Price Trends:

Over the last 12 months, Edgewell Personal Care's (EPC) stock price has fallen by approximately 18.98%. The 52-week high is $41.50, while the 52-week low is $26.65. As of April 2025, the stock price is around $31.69, which is relatively close to its 12-month low, potentially presenting a buying opportunity. The average stock price for the last 52 weeks has been $35.73.

Dividend and Payout Ratios:

• Dividend Yield: Edgewell Personal Care’s dividend yield is approximately 2.02% as of April 2025.
• Payout Ratio: The company's payout ratio is around 32.4%, which suggests that the dividend payments are sustainable given the earnings.
• The company has been paying a quarterly dividend of $0.15 per share, translating to an annualized dividend of $0.60 per share. The last ex-dividend date was March 5, 2025.

Analyst Consensus:

Based on ratings from 7 Wall Street analysts, the consensus rating for Edgewell Personal Care's (EPC) stock is 'Hold.' Among these analysts:

• 1 analyst recommends a 'Sell.'
• 2 analysts recommend a 'Hold.'
• 4 analysts recommend a 'Buy.'

The average twelve-month price target is $35.71, with a high forecast of $43.00 and a low forecast of $28.00. This suggests a potential upside of approximately 19.05% from the current price of $30.00.

Additional Factors:

Edgewell Personal Care's revenue growth faced difficulties, experiencing a decline of approximately -2.15% as of December 31, 2024. The company's net margin is also below industry averages, at -0.44%, indicating potential challenges in maintaining strong profitability. The company’s debt-to-equity ratio is 0.98, suggesting a sound financial structure.

To delve deeper into Edgewell Personal Care Company's financial health, check out: Breaking Down Edgewell Personal Care Company (EPC) Financial Health: Key Insights for Investors

Edgewell Personal Care Company (EPC) Risk Factors

Understanding the risks that Edgewell Personal Care Company (EPC) faces is crucial for investors assessing its financial health and future prospects. These risks span both internal and external factors, significantly impacting the company’s operational efficiency and financial stability. Here's an overview of key risks and mitigation strategies.

External Risks:

• Intense Industry Competition: The personal care market is highly competitive. Competitors often engage in aggressive pricing strategies, promotional activities, and new product introductions. This competition can pressure EPC's profit margins and market share.
• Regulatory Changes: Changes in regulations related to product safety, environmental standards, and advertising can increase compliance costs. These changes may also require EPC to reformulate products or alter marketing strategies, affecting profitability.
• Market Conditions and Consumer Preferences: Shifts in consumer preferences, economic downturns, and global events can impact demand for EPC's products. For example, a recession could lead consumers to switch to lower-priced alternatives, reducing EPC's sales.

Internal Risks:

• Operational Risks: Disruptions in the supply chain, manufacturing inefficiencies, or quality control issues can lead to increased costs and reduced sales. Maintaining consistent product quality and efficient operations is vital.
• Financial Risks: Fluctuations in currency exchange rates, rising raw material costs, and interest rate changes can affect EPC's financial performance. Effective financial risk management is essential to mitigate these impacts.
• Strategic Risks: Poor strategic decisions, such as unsuccessful acquisitions or ineffective marketing campaigns, can negatively impact EPC's competitive position and financial results. Adapting to market trends and making sound strategic investments are crucial.

Mitigation Strategies:

While specific mitigation strategies can vary, Edgewell Personal Care Company (EPC) likely employs several common approaches to manage these risks:

• Diversification: Diversifying product lines and geographic markets can reduce reliance on any single product or region, minimizing the impact of market-specific risks.
• Cost Management: Implementing cost-control measures, such as improving operational efficiency and negotiating favorable supplier contracts, can help maintain profitability in the face of competitive pressures and rising costs.
• Innovation: Investing in research and development to create new and innovative products can help EPC stay ahead of consumer trends and maintain a competitive edge.
• Compliance Programs: Establishing robust compliance programs to adhere to regulatory requirements can minimize the risk of fines, penalties, and reputational damage.
• Financial Hedging: Using financial instruments to hedge against currency fluctuations and interest rate changes can reduce the impact of these risks on EPC's financial results.

For further insights into Edgewell Personal Care Company (EPC) financial health, see: Breaking Down Edgewell Personal Care Company (EPC) Financial Health: Key Insights for Investors

Edgewell Personal Care Company (EPC) Growth Opportunities

Edgewell Personal Care Company's future growth prospects hinge on several key factors, including product innovation, strategic market expansions, impactful acquisitions, and the ability to maintain a competitive edge. These elements collectively shape the company's potential for increased revenue and sustained profitability. For further details on Edgewell's financial standing, you can read more at: Breaking Down Edgewell Personal Care Company (EPC) Financial Health: Key Insights for Investors

Product innovation remains a cornerstone of Edgewell's growth strategy. By continually introducing new and improved products, the company can attract new customers and retain existing ones. This involves investing in research and development to identify unmet consumer needs and leveraging technological advancements to create superior products.

Market expansion, particularly into emerging markets, offers another avenue for growth. These regions often present significant opportunities due to their growing populations and increasing disposable incomes. However, successful expansion requires a deep understanding of local consumer preferences and the ability to adapt products and marketing strategies accordingly.

Strategic acquisitions can also play a vital role in Edgewell's growth trajectory. By acquiring complementary businesses, the company can expand its product portfolio, gain access to new technologies, and increase its market share. However, successful acquisitions require careful due diligence and effective integration to realize synergies and avoid potential pitfalls.

Edgewell's competitive advantages, such as its strong brand reputation, established distribution network, and economies of scale, also contribute to its growth potential. These advantages allow the company to compete effectively in the marketplace and maintain its profitability.

While specific revenue growth projections and earnings estimates are subject to market conditions and other factors, analysts generally expect Edgewell to achieve moderate growth in the coming years. This growth is expected to be driven by the factors mentioned above, as well as the company's ongoing efforts to improve its operational efficiency and reduce costs.

Several strategic initiatives and partnerships may also drive future growth for Edgewell. These could include collaborations with other companies to develop new products or enter new markets, as well as investments in digital marketing and e-commerce to reach a wider audience.

To illustrate, consider a hypothetical scenario based on available information and industry trends:

Let's assume Edgewell aims to increase its market share in the grooming products segment by 5% over the next 3 years through a combination of product innovation and targeted marketing campaigns. If the current market size is $20 billion, a 5% increase would translate to an additional $1 billion in revenue. Furthermore, suppose Edgewell plans to expand its presence in emerging markets, targeting a 10% revenue growth in these regions. If emerging markets currently contribute $500 million to Edgewell's revenue, a 10% increase would add another $50 million. These initiatives, combined with ongoing cost optimization efforts, could potentially lead to a significant boost in Edgewell's overall financial performance.

The following table summarizes potential growth drivers for Edgewell: