Edgewell Personal Care Company Common Stock (EPC)

FairStock Score: 22/100 — RISKY

Key Financials

Strengths

• Generates $89 million in annual free cash flow (8.1% yield on market cap)
• Attractive 2.6% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($9) with negative 167% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Edgewell Personal Care Company Common Stock is a micro-cap consumer defensive company valued at $1.1 billion. Revenue stands at $2.2 billion, though the company is currently unprofitable. From a quality standpoint, Edgewell shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.0 warrants caution. On valuation, the stock is commanding a steep 215.9x multiple, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 1.9% and profit growth of -189.1%. The 2.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 22/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $89 million in annual free cash flow (8.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 216x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer