Edgewell Personal Care Co., headquartered in Shelton, Connecticut, manufactures personal care products across Wet Shave, Sun and Skin Care, and Feminine Care segments, operating in over 20 countries. The company, founded in 2000, employs 6,800 people and markets brands like Schick, Banana Boat, and Playtex.
Based on our analysis, Edgewell Personal Care Company is currently rated as undervalued with a score of 4 out of 5 stars. Several key financial ratios indicate that the company presents a solid investment opportunity compared to its sector.
The Price-to-Earnings (PE) ratio for Edgewell stands at 15.46, significantly lower than the sector average of 19.43. A lower PE ratio suggests that the company may be undervalued relative to its earnings potential. Additionally, the Price-to-Book (PB) ratio of 1.13 further supports this claim, as it is well below the sector average of 2.17. This indicates that investors are paying less for each dollar of net assets, highlighting potential for growth.
Edgewell’s net profit margin is 4.38, in stark contrast to the sector's negative margin of -9.39. This positive margin reflects the company's ability to generate profit from its revenues, showcasing operational efficiency. The Return on Equity (ROE) ratio of 6.22 outperforms the sector average of -15.01, emphasizing that Edgewell is effectively using shareholders' equity to generate profits.
Moreover, the company offers a dividend yield of 2.30, slightly above the sector average of 2.25, which may appeal to income-focused investors. The Return on Assets (ROA) ratio of 2.64 also stands out against the sector's -10.32, indicating better asset utilization to generate earnings.
This combination of favorable financial metrics suggests that Edgewell Personal Care Company is undervalued relative to its peers in the industry.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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