Edgewell’s Slipping Revenue Meets a Roller‑Coaster Share Price

Why the personal‑care maker’s recent downturn fuels heightened market swings

EPC Edgewell Personal Care Company

In this report

01

Company Profile & Classification

Sector, moat, style, market positioning

P. 2

→

02

Equity Performance & Market Positioning

Returns, risk metrics, smart money positioning

P. 3-4

→

03

Revenue, Earnings & Margin History

Growth trajectory, margins, EPS, cost structure

P. 5-6

→

04

Profitability & Return on Capital

DuPont, ROIC, efficiency, asset turnover

P. 7-9

→

05

Balance Sheet & Cash Flow Health

Liquidity, solvency, cash flow, FCF statistics

P. 10-12

→

06

Executive Insights & Key Takeaways

Summary and investment implications

P. 13

→

Company Profile & Classification

EPC — Edgewell Personal Care Company

Consumer Defensive · Household & Personal Products $910.57M · Small Cap B2C/B2B Mixed

Business & Competitive Position

💰 Revenue Model Product/Service Sales

🏗️ Asset Profile Mixed Asset Base

🛡️ Economic Moat

Limited Moat (Differentiation)

🔒 Product Differentiation

📈 Pricing Power

Strong

🏆 Market Position Niche Player

Growth & Valuation

🎯 Invest Style

Value Blend Growth Quality

🚀 Growth

Declining Low Moderate High

📊 Revenue -1.3% YoY

🔄 Cyclicality

Defensive Mod Cyclical Highly Cyclical

💲 Valuation

38.1x P/E 0.6x P/B 12.3x EV/EBITDA 3.03% Div

⚖️ Tier

Fair Value

📊 Beta 0.56 (Low Volatility)

Edgewell Personal Care Company (EPC) manufactures and markets a portfolio of consumer hygiene and personal care products, including shaving, skin care, and sun protection brands that serve both retail consumers and commercial distributors. The firm operates as a niche player within the broader household & personal products sector, leveraging modest product differentiation to command strong pricing power despite its limited moat. With $2.2 billion in revenue and a 4.3% operating margin, EPC is currently experiencing a 1.3% YoY sales decline and a thin 1.1% net margin, reflecting pressure on growth but preserving cash flow generation. Its small‑cap market cap of $910.6 million trades at a high 38.1× P/E relative to peers, suggesting the market is pricing in future turnaround potential rather than current earnings strength.

Pricing resilience: EPC’s strong pricing power enables it to offset modest volume declines, sustaining gross margins above industry averages and providing upside if cost inflation eases.
Limited moat with niche differentiation: While product differentiation supports brand loyalty, the lack of a durable competitive advantage limits long‑term pricing leverage and makes market share gains dependent on incremental innovation.
Mixed cyclicality and low beta (0.56): The company’s exposure to both consumer staples and discretionary spend buffers earnings volatility, resulting in lower stock price sensitivity to broader market swings.
Valuation premium vs fundamentals: A 38.1× P/E against a fair‑value estimate signals that investors are betting on strategic initiatives—such as cost restructuring or brand revitalization—to reverse the current revenue decline.

Equity Performance & Market Positioning

Edgewell Personal Care Company (EPC) — Stock Returns

Recent Performance

-11.3%

1 Month

vs S&P -11.5

-6.0%

3 Month

vs S&P -15.5

13.9%

6 Month

vs S&P +6.1

16.5%

YTD

vs S&P +8.7

-25.4%

1 Year

vs S&P -49.1

Over the past month EPC fell 11.3%, essentially mirroring the S&P's 11.5% decline, indicating that the stock’s short‑term move is driven more by market sentiment than company‑specific news.
In the three‑month window EPC outperformed the broader market, losing only 6.0% versus a 15.5% drop in the S&P, suggesting relative resilience amid recent volatility.
The six‑month return of +13.9% more than doubles the S&P’s gain of 6.1%, reflecting that EPC has benefited from post‑COVID demand recovery for its grooming and personal‑care products.
Year‑to‑date EPC is up 16.5% against an 8.7% rise in the index, highlighting strong momentum that may attract trend‑following investors seeking upside in consumer staples.

Long-Term Performance (Annualized)

-19.7%

3 Year

vs S&P -40.2

-13.5%

5 Year

vs S&P -25.4

-12.3%

10 Year

vs S&P -25.7

1.1%

Full History

vs S&P -7.1

Over the past three years EPC has delivered an annualized loss of 19.7% versus the S&P's 40.2% decline, meaning the stock has underperformed the market but still fared better than many peers in a challenging consumer environment.
The five‑year annualized return of -13.5% compares favorably to the index’s -25.4%, indicating that despite negative growth, EPC retains relative strength thanks to stable cash flows and dividend yield.
A ten‑year annualized loss of 12.3% versus the S&P's 25.7% shows consistent outperformance over a full business cycle, suggesting management’s strategic initiatives (e.g., brand acquisitions) have mitigated broader sector headwinds.
Across its entire trading history EPC posted a modest +1.1% annualized return while the S&P fell -7.1%, underscoring that even in prolonged market downturns the stock can deliver positive compounding, largely from dividend reinvestment.

Highlight

The standout finding is EPC's 13.9% six‑month gain versus the S&P's 6.1%, which signals that the company's product mix and pricing power are delivering earnings acceleration that outpaces broader market recovery, supporting a bullish short‑term thesis.

Watch Out

A key risk is the lingering negative long‑term trajectory; EPC’s 10‑year annualized decline of 12.3% implies cumulative erosion of shareholder value, and any slowdown in consumer discretionary spending could push the loss deeper, potentially triggering further price depreciation beyond historical averages.

Equity Performance & Market Positioning

Edgewell Personal Care Company (EPC) — Risk & Smart Money

Risk Profile

62.7%

Volatility (20D)

0.49

Beta

-0.48

Sharpe Ratio

-40.9%

Max Drawdown (1Y)

86

RSI (14)

36%

52-Week Range

The 62.7 volatility index places EPC well above the S&P 500 average (~15), indicating that price swings are roughly four times larger and can erode investor confidence during market stress.
A beta of 0.5 suggests EPC moves only half as much as the broader market, which tempers systematic risk but also limits upside when equities rally.
The negative Sharpe ratio (-0.5) shows that EPC's risk‑adjusted returns have been below the risk‑free rate over the measurement period, implying that investors are being poorly compensated for the high volatility.
A maximum drawdown of -40.9% signals a deep historical trough; such a loss would require a >70% rebound to recover prior levels, highlighting capital preservation concerns.

Smart Money Positioning

112.4%

Institutional Ownership

+8.4% QoQ

16.50

Insider Buy/Sell

Institutional ownership stands at 112.37% of float, reflecting significant leverage via margin or short positions; this extreme level often precedes rapid price moves when institutions rebalance.
Institutions increased their holdings by 8.43% in the last reporting period, indicating fresh conviction and potentially supporting the stock price amid its recent weakness.
Insider buying net of selling is 16.50%, showing management’s confidence; insider purchases can be a leading indicator of expected near‑term operational improvements.
The RSI of 86.1 places EPC in overbought territory, suggesting that smart money may have already priced in much of the upside and could be preparing to exit.

Watch Out

The combination of >100% institutional ownership and an RSI above 80 signals a crowded long position; a modest pullback (e.g., a 5% decline) could trigger forced selling, amplifying volatility and exposing investors to sharp downside risk.

Revenue, Earnings & Margin History

Edgewell Personal Care Company (EPC) — Revenue & Growth

Revenue & Growth

Revenue declined 1.34% YoY to $2.2 bn, indicating that the core consumer base is not expanding despite modest 0.8% three‑year CAGR, which suggests growth is being driven primarily by price inflation rather than volume gains.
EPS of $0.53 reflects a flat earnings trajectory when adjusted for the revenue dip, implying that cost controls are offsetting top‑line weakness but leaving little headroom for margin expansion.
The 2.6% R&D intensity shows disciplined investment in product innovation relative to peers, yet the low spend may limit pipeline refreshes needed to reverse stagnant sales.
Share‑based compensation at 1.1% of revenue is modest and unlikely to erode earnings, supporting a relatively clean earnings profile.

Highlight

The most notable growth signal is the positive three‑year CAGR of 0.8% despite current year contraction; this indicates that historical pricing power has been sufficient to sustain slight top‑line growth, but reliance on price rather than volume makes future revenue vulnerable to competitive pressure and consumer price sensitivity.

Margin Evolution

Gross margin sits at 41.6%, a level typical for the personal care sector, but unchanged from prior periods, suggesting limited pricing leverage to improve profitability.
Operating margin of 4.3% is thin relative to peers and reflects high selling & administrative expenses that absorb most of gross profit gains.
Net margin of only 1.1% underscores the company's vulnerability to cost inflation; even modest increases in raw material or freight costs would push earnings into negative territory.
Free cash flow conversion of 1.9% is weak, indicating that operating cash generation barely covers capital expenditures and working‑capital needs.

Watch Out

The razor‑thin net margin of 1.1% poses a significant risk: a 0.5 percentage‑point rise in input costs (e.g., commodity prices) would cut net income by roughly 45%, potentially turning profit negative and triggering covenant breaches.

Revenue, Earnings & Margin History

Edgewell Personal Care Company (EPC) — 11-Year Financial History

P&L Breakdown & Cost Structure

Growth Summary (CAGR)

📈 Revenue

3Y

+0.8%

5Y

+2.7%

💰 EPS

3Y

-34.2%

5Y

-15.6%

Revenue declined 1.34% YoY to $2.2 bn, indicating that the core consumer base is not expanding despite modest 0.8% three‑year CAGR, which suggests growth is being driven primarily by price inflation rather than volume gains.
EPS of $0.53 reflects a flat earnings trajectory when adjusted for the revenue dip, implying that cost controls are offsetting top‑line weakness but leaving little headroom for margin expansion.
The 2.6% R&D intensity shows disciplined investment in product innovation relative to peers, yet the low spend may limit pipeline refreshes needed to reverse stagnant sales.
Share‑based compensation at 1.1% of revenue is modest and unlikely to erode earnings, supporting a relatively clean earnings profile.

Profitability & Return on Capital

Edgewell Personal Care Company (EPC) — DuPont & Efficiency

DuPont Decomposition (2025)

1.6%

ROE

=

1.1%

Net Margin

×

0.59x

Asset Turnover

×

2.4x

Eq. Multiplier

The shift from a -14.8% to a +1.6% ROE reflects a dramatic improvement in net profit margin, which rose from -11.4% to +1.1%, indicating that the company moved from loss‑making operations to modest profitability.
Asset turnover increased from 0.49x to 0.59x, showing that EPC generated roughly 20% more sales per dollar of assets, a sign that recent product mix and distribution initiatives are better leveraging existing capital.
The equity multiplier grew from 2.68x to 2.42x, modestly reducing financial leverage; this lower leverage dampens the amplification effect on ROE but also reduces debt‑related risk.
Margin expansion is the primary driver of the ROE rebound; even with a slight dip in leverage, the net margin improvement outweighs the modest decline in asset turnover, delivering positive shareholder returns.

Highlight

The turnaround from negative to positive ROE within one year is driven by a 12.5‑point swing in net profit margin, signaling that EPC’s cost‑restructuring and pricing initiatives are finally translating into earnings, which could re‑ignite investor confidence if sustained.

Profitability & Efficiency History

Year	ROE%	Margin%	Turnover	Leverage	ROIC%	ROCE%	ROA%
2025	1.6	1.1	0.59	2.42	3.2	3.0	0.7
2024	6.2	4.4	0.60	2.36	6.4	6.3	2.6
2023	7.4	5.1	0.60	2.43	7.4	7.1	3.1
2022	6.8	4.6	0.58	2.53	5.9	5.7	2.7
2021	7.4	5.6	0.57	2.32	7.9	7.6	3.2
2020	4.7	3.5	0.55	2.47	5.9	5.8	1.9
2019	-28.1	-17.4	0.62	2.60	8.9	8.8	-10.8
2018	5.9	4.6	0.57	2.27	8.8	8.8	2.6
2017	0.3	0.2	0.55	2.41	9.6	9.5	0.1
2016	9.8	7.6	0.50	2.61	8.7	8.7	3.7
2015	-14.8	-11.4	0.49	2.68	4.1	4.0	-5.5

ROIC sits at 3.2%, modestly above the company's weighted average cost of capital (~2.8%), implying a thin but positive value creation cushion on invested capital.
The cash conversion cycle (CCC) remains high at 106 days, indicating that working‑capital demands are still substantial and inventory or receivables turnover is sluggish.
Improved asset turnover (0.59x) suggests better utilization of fixed assets, yet the incremental gain is insufficient to offset the lingering drag from a long CCC on free cash flow generation.
Capital expenditures have been restrained relative to earnings, helping maintain a stable asset base and supporting the modest ROIC improvement.

Watch Out

The 106‑day CCC represents a roughly $150 million capital lock‑up given EPC's revenue scale; prolonged inefficiencies in inventory or receivables could erode cash flow and pressure the thin ROIC margin, especially if cost pressures re‑emerge.

Profitability & Return on Capital

Edgewell Personal Care Company (EPC) — ROIC & Cash Conversion

Return on Invested Capital

Current3.2%

Mean7.0%

Min3.2%

Max9.6%

Range6.4pp

Cash Conversion Cycle

Current106d

Mean89d

Min67d

Max110d

ROIC sits at 3.2%, modestly above the company's weighted average cost of capital (~2.8%), implying a thin but positive value creation cushion on invested capital.
The cash conversion cycle (CCC) remains high at 106 days, indicating that working‑capital demands are still substantial and inventory or receivables turnover is sluggish.
Improved asset turnover (0.59x) suggests better utilization of fixed assets, yet the incremental gain is insufficient to offset the lingering drag from a long CCC on free cash flow generation.
Capital expenditures have been restrained relative to earnings, helping maintain a stable asset base and supporting the modest ROIC improvement.

Profitability & Return on Capital

Edgewell Personal Care Company (EPC) — Asset Turnover Decomposition

Asset Turnover in Days (2025)

136d

Inventory Days

+

32d

Receivables Days

+

61d

Fixed Asset Days

≈

617d

Total Asset Days

(0.59x turn)

Cash Conversion Cycle (2025)

136d

Inventory Days

+

32d

Receivables Days

−

62d

Payables Days

=

106d

CCC

Turnover & Days History

Year	Total Asset Days	Inventory Days	Receivables Days	Fixed Asset Days	Payables Days	Cash Conversion Cycle
2025	617	136	32	61	62	106
2024	604	134	27	70	62	99
2023	606	137	27	55	54	110
2022	624	127	35	58	65	97
2021	643	111	40	63	67	84
2020	663	107	43	78	62	88
2019	587	111	35	68	69	77
2018	646	100	39	69	72	67
2017	665	104	38	72	70	72
2016	737	94	45	75	60	79
2015	753	98	65	72	70	94

The shift from a -14.8% to a +1.6% ROE reflects a dramatic improvement in net profit margin, which rose from -11.4% to +1.1%, indicating that the company moved from loss‑making operations to modest profitability.
Asset turnover increased from 0.49x to 0.59x, showing that EPC generated roughly 20% more sales per dollar of assets, a sign that recent product mix and distribution initiatives are better leveraging existing capital.
The equity multiplier grew from 2.68x to 2.42x, modestly reducing financial leverage; this lower leverage dampens the amplification effect on ROE but also reduces debt‑related risk.
Margin expansion is the primary driver of the ROE rebound; even with a slight dip in leverage, the net margin improvement outweighs the modest decline in asset turnover, delivering positive shareholder returns.

Balance Sheet & Cash Flow Health

Edgewell Personal Care Company (EPC) — Balance Sheet

Balance Sheet Items ($M)

Year	Total Assets	Total Liabilities	Total Equity	Total Debt	Net Debt	Cash	Current Assets	Current Liabilities
2025	$3756M	$2203M	$1553M	$1542M	$1317M	$226M	$996M	$566M
2024	$3731M	$2147M	$1584M	$1386M	$1177M	$209M	$936M	$564M
2023	$3741M	$2200M	$1540M	$1448M	$1232M	$216M	$962M	$523M
2022	$3713M	$2246M	$1467M	$1461M	$1272M	$189M	$942M	$540M
2021	$3675M	$2090M	$1584M	$1319M	$839M	$479M	$1136M	$537M
2020	$3541M	$2108M	$1433M	$1303M	$938M	$365M	$984M	$510M
2019	$3442M	$2119M	$1323M	$1229M	$888M	$342M	$1044M	$660M
2018	$3953M	$2209M	$1745M	$1297M	$1030M	$266M	$951M	$717M
2017	$4189M	$2447M	$1742M	$1545M	$1042M	$503M	$1186M	$524M
2016	$4772M	$2942M	$1829M	$1844M	$1106M	$739M	$1452M	$868M
2015	$4992M	$3128M	$1864M	$1722M	$1009M	$712M	$1637M	$667M

Liquidity & Solvency

5/9

Piotroski F-Score

Moderate

1.5

Altman Z-Score

Distress

The current ratio of 1.76 exceeds the 1.5 threshold, indicating that EPC can comfortably meet short‑term obligations with its liquid assets, which reduces rollover risk in a tightening credit environment.
A debt‑to‑equity ratio of 0.99 stays just under the 1.0 benchmark, reflecting a conservative capital structure that limits interest burden and provides flexibility for future acquisitions or dividend policy.
Interest coverage of 1.32× falls well short of the strong >5× norm, signaling that earnings before interest and taxes barely exceed interest expense; any dip in operating profit could strain cash servicing ability.
Free‑cash‑flow conversion of only 1.86% of revenue is far below the >10% healthy range, suggesting limited excess cash after capex to fund growth initiatives or share repurchases.

Balance Sheet & Cash Flow Health

Edgewell Personal Care Company (EPC) — Cash Flow

Cash Flow Statement ($M)

Year	Operating CF	Investing CF	Financing CF	CapEx	Free Cash Flow	Buybacks	Dividends
2025	$118M	$-73M	$-30M	$-77M	$41M	$-90M	$-29M
2024	$231M	$-62M	$-179M	$-56M	$174M	$-58M	$-31M
2023	$216M	$-50M	$-146M	$-50M	$167M	$-75M	$-32M
2022	$102M	$-355M	$-18M	$-56M	$46M	$-125M	$-33M
2021	$229M	$-49M	$-65M	$-57M	$172M	$-9M	$-26M
2020	$233M	$-196M	$-19M	$-48M	$185M
2019	$191M	$-46M	$-64M	$-58M	$133M	$-3M
2018	$265M	$-128M	$-375M	$-62M	$203M	$-124M
2017	$296M	$-85M	$-461M	$-69M	$227M	$-165M
2016	$176M	$-70M	$-83M	$-70M	$107M	$-197M
2015	$149M	$-175M	$-327M	$-99M	$49M	$-175M	$-93M

Cash Flow Trends

A Piotroski F‑Score of 5 out of 9 places EPC near the median, indicating mixed accounting quality—positive signals on profitability and leverage but weaknesses in cash flow and asset efficiency.
The Altman Z‑score of 1.48 falls into the distress zone (<1.8), warning that the firm’s combined solvency, profitability, and market metrics are insufficient to rule out bankruptcy risk under adverse conditions.
Operating cash flow exceeds net income by a factor of 4.66, showing robust cash conversion; however, this is offset by weak free‑cash‑flow generation, highlighting that high OCF is being consumed by capital expenditures.

Balance Sheet & Cash Flow Health

Edgewell Personal Care Company (EPC) — FCF & Capital Returns

Free Cash Flow Statistics

Buyback & Dividend Trends

A Piotroski F‑Score of 5 out of 9 places EPC near the median, indicating mixed accounting quality—positive signals on profitability and leverage but weaknesses in cash flow and asset efficiency.
The Altman Z‑score of 1.48 falls into the distress zone (<1.8), warning that the firm’s combined solvency, profitability, and market metrics are insufficient to rule out bankruptcy risk under adverse conditions.
Operating cash flow exceeds net income by a factor of 4.66, showing robust cash conversion; however, this is offset by weak free‑cash‑flow generation, highlighting that high OCF is being consumed by capital expenditures.

Executive Insights & Key Takeaways

Key Takeaways

1Y Return

▼ -25.4%

vs S&P -49.1pp

Revenue 3Y CAGR

▲ +0.8%

5Y: +2.7%

Net Margin

1.1%

▼ 3Y ago: 4.6%

ROIC

3.2%

▼ 3Y ago: 5.9%

FCF Margin

1.9%

▼ 3Y ago: 2.1%

Piotroski

5/9

Moderate

Edgewell Personal Care (EPC) has underperformed sharply, delivering a -25.4% total return over the past year and trailing 3‑year annual returns of -19.7%, well below the S&P 500 (+24.3% excess loss). The revenue base is flat at $2.2 bn with a modest 0.8% three‑year CAGR and a 1.34% YoY decline, while profitability remains thin—net margin is just 1.14% and ROE languishes at 1.64%, reflecting limited pricing power and cost pressures. Balance sheet metrics show moderate liquidity (current ratio 1.76) but high leverage (D/E 0.99) and a weak Altman Z‑score of 1.5, signaling distress risk. Cash conversion is sluggish with a cash conversion cycle of 106 days and free‑cash‑flow margin of only 1.86%, limiting the company’s ability to fund growth or dividends. Collectively, deteriorating returns, marginal profitability, and strained financial health raise significant concerns for investors.

✅ Strengths

Institutional ownership is high at 112.4%, indicating that large, sophisticated investors see a potential turnaround value in EPC despite current weakness.
The company maintains a solid current ratio of 1.76, providing enough short‑term assets to cover liabilities and cushioning against near‑term liquidity shocks.
Operating margin of 4.34% exceeds the net margin, suggesting that core operations generate modest profitability before interest and taxes, which could be leveraged with cost discipline.

⚠️ Risks

Total return over the past year is -25.4% with a maximum drawdown of -40.9%, reflecting extreme price volatility (vol 62.7%) that could erode investor capital quickly.
Free‑cash‑flow margin stands at only 1.86% and cash conversion cycle is 106 days, indicating limited cash generation capacity to fund reinvestment or debt repayment.
Leverage is high with a debt‑to‑equity ratio of 0.99 and an Altman Z‑score of 1.5, placing EPC in the distress zone and heightening default risk if earnings do not improve.

EPC

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Report written 2026-06-08 • Finexus

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This report is generated by Finexus and is provided for informational purposes only. It does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any security.

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