EPC

Edgewell Personal Care Co

Consumer


Presented:05/23/2023
Price:$42.38
Cap:$2.17B
Current Price:$35.48
Cap:$1.75B

Presented

Date05/23/2023
Price$42.38
Market Cap$2.17B
Ent Value$3.54B
P/E Ratio23.4x
Book Value$29.42
Div Yield1.42%
Shares O/S51.17M
Ave Daily Vol399,474
Short Int8.64%

Current

Price$35.48
Market Cap$1.75B
Edgewell Personal Care Co. engages in the manufacturing and marketing of personal care products. It operates through the following business segments: Wet Shave, Sun and Skin Care, and Feminine Care. The Wet Shave segment manufactures and distributes razor systems, which are composed of razor handles and refillable blades, and disposable shave products for men and women. The Sun and Skin segment consists of Banana Boat, Hawaiian Tropic, and Wet Ones brands. The Feminine Care segment consists of tampons, pads and liners sold under the Playtex, Stayfree, Carefree, and o.b brands. The company was founded on September 23, 1999 and is headquartered in Shelton, CT.

Publicly traded companies mentioned herein: Edgewell Personal Care Co (EPC)

Highlights

The presenter is short shares of Edgewell Personal Care (EPC) based on expectations that EBITDA stall outs and reverts as inflation benefits subside. He believes EPC will revert to historical share loss/negative growth rates after several one-time benefits subside. Organic revenue growth was negative for 4 years prior to COVID (Between -2.8% and -4.4%) due to share losses. EPC benefitted from (1) inflation (2) Wet shave expansion through recent Billie acquisition into WMT/TGT – that is now complete (stocking should be done) (3) Suncare benefitted from a 2021 recall of 2 Neutrogena products – now share is already reverting (4) feminine care benefitted from PG having supply chain issue with feminine product line (now resolved). The stock continues to trade at a premium to comps and will likely come under pressure due to slowing consumer demand. As this plays out he expects EBITDA to be flat to down at around $300M and sees a 20% discount to the S&P multiple as reasonable given the 4X leverage. If this scenario plays out, he thinks the stock should trade at 8x-9x EBITDA, which equates to $30 or below. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.