EPC Stock Risk & Deep Value Analysis
Edgewell Personal Care Co
Consumer Defensive • Household & Personal Products
DVR Score
out of 10
What You Need to Know About EPC Stock
We analyzed Edgewell Personal Care Co using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran EPC through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
EPC Risk Analysis & Red Flags
What Could Go Wrong
The biggest risk is the continued erosion of organic sales and profitability in its core Wet Shave and Sun and Skin Care segments, particularly in North America, which saw a 4.8% organic sales decline in Q2 FY2026. This would make it increasingly difficult for the company to service its approximately 4.0x adjusted net debt leverage, despite the recent $340 million cash infusion from the Feminine Care divestiture.
Risk Matrix
Overall
Aggressive
Financial
High
Market
Medium
Competitive
High
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
Negative organic net sales (-2.4% YoY in Q2 FY2026).
- ⚠
Declining gross margins (41.8% in Q2 FY2026 vs 45.9% prior year).
- ⚠
High adjusted net debt leverage (~4.0x).
- ⚠
Significant GAAP diluted EPS decline (-79.1% YoY in Q2 FY2026) due to divestiture-related charges.
- ⚠
Segment profit declines in both Wet Shave (-27.7%) and Sun and Skin Care (-6.3%) in Q2 FY2026.
Upcoming Risk Events
- 📅
Q3 Fiscal 2026 Earnings Miss (est. August 4, 2026): Organic net sales decline further, or adjusted EBITDA falls below $70 million, indicating continued operational deterioration.
- 📅
Increased Competitive Pressure (ongoing): Sustained market share losses to DTC brands or major competitors (P&G, Kimberly-Clark) in core Wet Shave or Sun/Skin Care segments exceeding 2% annually.
When to Reconsider
- 🚪
Exit if quarterly organic net sales decline accelerates to -5% or worse for two consecutive quarters.
- 🚪
Sell if adjusted EBITDA margin falls below 10% for two consecutive quarters.
- 🚪
Liquidate position if adjusted net debt leverage increases above 4.5x after accounting for divestiture proceeds.
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What Does Edgewell Personal Care Co (EPC) Do?
Market Cap
$736.38M
Sector
Consumer Defensive
Industry
Household & Personal Products
Employees
6,700
Edgewell Personal Care Company, together with its subsidiaries, manufactures and markets personal care products worldwide. It operates through three segments: Wet Shave, Sun and Skin Care, and Feminine Care. The Wet Shave segment provides razor systems, such as razor handles and refillable blades, and disposable shave products for men and women under the Schick and Wilkinson Sword brands; and shave preparation products, including shaving gels and shaving creams under the Edge, Skintimate, Billie, Shave Guard brands. This segment also manufactures and sells private label and disposable razors, shaving systems, and replacement blades. The Sun and Skin Care segment provides general protection, sport, kids, baby, tanning, and after sun products under the Banana Boat and Hawaiian Tropic brands; antibacterial hand wipes and other related products under the Wet Ones brand; skin care products for men under the Bulldog and Jack Black brands; and beard, hair, and skin care products under the Cremo brand. The Feminine Care segment provides tampons under the Playtex Gentle Glide 360°, Playtex Sport, Playtex, and o.b. brands; and markets pads and liners under the Stayfree and Carefree brands. The company distributes its products through direct sales force, exclusive and non-exclusive distributors, and wholesalers. The company was formerly known as Energizer Holdings, Inc. and changed its name to Edgewell Personal Care Company in June 2015. Edgewell Personal Care Company was founded in 1772 and is headquartered in Shelton, Connecticut.
Visit Edgewell Personal Care Co WebsiteInvestment Thesis
If Edgewell successfully deleverages its balance sheet using the $340M Feminine Care divestiture proceeds to significantly reduce its ~4.0x net debt leverage, and simultaneously stabilizes organic sales in its core Wet Shave and Sun/Skin Care segments, then the market may re-rate its valuation from current depressed levels, potentially reaching a 15x forward P/E on an improved $2.00 FY2026 adjusted EPS, equating to a $30.00 share price.
Is EPC Stock Undervalued?
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EPC Price Targets & Strategy
12-Month Target
$21.00
Bull Case
$28.00
Bear Case
$12.00
Valuation Basis
12x forward P/E applied to estimated $1.75 FY2026 adjusted EPS, reflecting stabilization amidst operational challenges.
Entry Strategy
Given current headwinds, consider buying only if consistent operational improvements are evident; otherwise, avoid. Potential support near $15-16 range.
Exit Strategy
Take profit at $25+ if operational turnaround materializes. Stop loss at $14 if organic sales declines accelerate or debt leverage worsens.
Portfolio Allocation
0% for aggressive portfolios targeting 10x growth; max 1-2% for highly conservative, income-focused portfolios (not applicable for this analysis's 10x focus).
Price Targets & Strategy
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Is EPC Financially Healthy?
Valuation
P/E Ratio
28.99
Forward P/E
8.37
EV/EBITDA
7.39
PEG Ratio
0.10
Price/Book
0.59
Price/Sales
0.42
Profitability
Gross Margin
41.27%
Operating Margin
0.80%
Net Margin
-3.69%
Return on Equity
-5.14%
Revenue Growth
-5.30%
EPS
$-1.68
Balance Sheet
Current Ratio
1.76
Quick Ratio
0.76
Debt/Equity
0.91
Cash & Equivalents
$299.70M
Cash Flow
Free Cash Flow
$46.90M
Other
Beta (Volatility)
0.53
Dividend Yield
3.77%
Does EPC Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Eroding
Moat Sources
2 Identified
Edgewell's brand power, particularly in Wet Shave and Sun Care, offers some consumer loyalty. However, this moat is eroding due to aggressive competition from both large incumbents (P&G, Unilever) and nimble direct-to-consumer (DTC) brands offering innovative products and competitive pricing. Maintaining relevance requires substantial and continuous marketing investment and product innovation.
Moat Erosion Risks
- •Intense competition from disruptive DTC brands offering subscription models and lower-cost alternatives.
- •Changing consumer preferences towards sustainable products or niche brands, challenging mass-market appeal of current offerings.
EPC Competitive Moat Analysis
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EPC Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral - little specific buzz for high growth, typical for CPG.
Institutional Sentiment
Neutral - Vanguard reported 6.56% ownership, but no strong signals of recent institutional buying/selling trends or analyst upgrades/downgrades were provided.
Insider Activity (Form 4)
No specific Form 4 insider transactions were found in the provided research for the last 90 days, indicating neutral sentiment from insiders.
Options Flow
Normal options activity, no significant unusual institutional positioning detected in the provided search results.
Earnings Intelligence
Next Earnings
August 4, 2026 (estimated)
Surprise Probability
Medium - Adjusted EPS beat consensus last quarter, but organic sales trends are weak.
Historical Earnings Pattern
No historical earnings reaction patterns were provided in the research; market reaction likely sensitive to organic growth and margin trends.
Key Metrics to Watch
Competitive Position
Top Competitor
Procter & Gamble (P&G) - particularly their Gillette brand, due to superior market share, brand investment, and distribution scale.
Market Share Trend
Losing ground, as evidenced by a 4.8% decline in North America organic sales in Q2 FY2026.
Valuation vs Peers
Trading at a trailing P/E of 31.79, which appears high given declining organic growth and margins compared to many stable, larger CPG peers.
Competitive Advantages
- •Strong brand recognition (Schick, Hawaiian Tropic, Banana Boat).
- •Established global distribution network.
Market Intelligence
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What Could Drive EPC Stock Higher?
Near-Term (0-6 months)
- •Q3 Fiscal 2026 Earnings (est. August 4, 2026): Positive organic sales growth in Wet Shave or Sun/Skin Care segments (especially North America) could signal market stabilization.
- •Debt Reduction Plan Announcement (within Q3/Q4 2026): Specific targets for leveraging the $340M Feminine Care sale proceeds to reduce the ~4.0x net debt leverage, aiming below 3.5x.
Medium-Term (6-18 months)
- •Stabilization of North America Organic Sales (by H2 FY2027): Consistent positive organic sales growth (>0%) for the North America Wet Shave segment (which declined 4.8% in Q2 FY2026) could indicate improved competitive positioning.
- •Successful Product Innovation Launch (H1 FY2027): Introduction of a new product line or significant innovation within existing core categories (e.g., sustainable shaving products) generating >$50M in annualized incremental revenue.
Long-Term (18+ months)
- •Sustained Global Market Share Gains (by FY2029): Achieving a 1-2 percentage point increase in global market share for key brands like Schick or Hawaiian Tropic, translating to an additional $100M+ in annual revenue.
- •Expansion into Adjacent High-Growth Personal Care Categories (by FY2030): Strategic M&A or organic development of a new product segment delivering at least $200M in new annual revenue, with EBITDA margins exceeding company average.
Catalysts & Growth Drivers
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What's the Bull Case for EPC?
- ✓
Watch quarterly organic net sales growth for North America Wet Shave segment; consistent positive growth (>0%) needed to signal turnaround.
- ✓
Monitor adjusted EBITDA margin; a sustained return above 15% would indicate improved profitability.
- ✓
Track adjusted net debt leverage; a reduction below 3.5x after the divestiture would signify improved financial health.
Bull Case Analysis
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Competing with EPC
See how Edgewell Personal Care Co compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Edgewell Personal Care Co EPC | $736.4M | 0.9 | 29.0 | $2.2B | -3.7% | -5.3% | |
Costco Wholesale Corp COST | — | 0.7 | — | — | — | — | Compare → |
Coca-Cola Co KO | $339.2B | 0.5 | 24.8 | $48.9B | 27.8% | 5.1% | Compare → |
PepsiCo Inc PEP | — | 0.1 | — | — | — | — | Compare → |
Procter & Gamble Co PG | $341.2B | 0.2 | 20.5 | $84.3B | 19.2% | 3.3% | Compare → |
Walmart Inc WMT | $972.0B | 0.7 | 42.8 | $713.2B | 3.1% | 5.9% | Compare → |
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How Edgewell Personal Care Co Makes Money
Edgewell Personal Care Co. (EPC) is a global consumer products company that primarily generates revenue by manufacturing and selling personal care products. Its main revenue comes from two segments: Wet Shave, offering razors, blades, and shave preparations under brands like Schick and Wilkinson Sword; and Sun and Skin Care, which includes sun protection products such as Hawaiian Tropic and Banana Boat. Individual consumers are the primary customers, purchasing these products through various retail channels worldwide. The business model relies on established brand recognition, ongoing product innovation, and an extensive distribution network to compete in mature and highly competitive markets.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Edgewell Personal Care Co (EPC)?
As of May 19, 2026, Edgewell Personal Care Co has a DVR Score of 0.9 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Edgewell Personal Care Co?
Edgewell Personal Care Co's market capitalization is approximately $736.4M. The company operates in the Consumer Defensive sector within the Household & Personal Products industry.
What ticker symbol does Edgewell Personal Care Co use?
EPC is the ticker symbol for Edgewell Personal Care Co. The company trades on the NYQ.
What is the risk level for EPC stock?
Our analysis rates Edgewell Personal Care Co's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of EPC?
Edgewell Personal Care Co currently has a price-to-earnings (P/E) ratio of 29.0. This is in line with broader market averages.
Does Edgewell Personal Care Co pay a dividend?
Yes, Edgewell Personal Care Co pays a dividend with a current yield of approximately 3.77%.
Is Edgewell Personal Care Co's revenue growing?
Edgewell Personal Care Co has reported revenue growth of -5.3%. Revenue has been declining, which warrants closer examination.
Is EPC stock profitable?
Edgewell Personal Care Co has a profit margin of -3.7%. The company is currently unprofitable.
How often is the EPC DVR analysis updated?
Our AI-powered analysis of Edgewell Personal Care Co is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 19, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for EPC (Edgewell Personal Care Co) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.