📊 EPC Key Takeaways
Is EDGEWELL PERSONAL CARE Co (EPC) a Good Investment?
EPC faces severe profitability deterioration with negative net income of $76.3M and persistent operating losses, coupled with negative free cash flow of -$97.2M that is rapidly depleting reserves. The company cannot cover interest obligations from operating income and revenue is declining, indicating structural business challenges. Without immediate operational turnaround, the company faces unsustainable cash burn and potential covenant violations.
Edgewell Personal Care's fundamentals show a clear deterioration in earnings quality, with revenue slightly declining while operating income, net income, and free cash flow have turned materially negative. The company still has acceptable near-term liquidity and a reasonable gross margin, but negative operating leverage, weak interest coverage, and sizable debt make the current financial profile pressured rather than resilient.
Why Buy EDGEWELL PERSONAL CARE Co Stock? EPC Key Strengths
- Gross margin of 40.1% indicates underlying product pricing power and core manufacturing efficiency
- Moderate leverage with Debt/Equity of 0.86x provides some financial flexibility relative to assets
- Current ratio of 1.81x and $299.7M cash balance provide short-term liquidity buffer
- Solid gross margin of 38.1%, indicating the core product portfolio still retains pricing power and category profitability
- Current ratio of 2.12x and cash balance of $223.3M provide some near-term liquidity support
- Equity base of $1.49B helps absorb volatility despite the weak earnings period
EPC Stock Risks: EDGEWELL PERSONAL CARE Co Investment Risks
- Operating income is negative at -$500K; company cannot service debt from operations (interest coverage -0.0x)
- Negative free cash flow of -$97.2M is unsustainable; cash reserves will deplete within 3 years at current burn rate
- Revenue declining -1.3% YoY with negative operating and net margins indicates business contraction and loss of scale economics
- Negative ROE (-5.3%) and ROA (-2.2%) show active shareholder value destruction
- Rising net income losses (-74.2% YoY decline) signal accelerating deterioration in profitability
- Operating margin of -4.5% and net margin of -15.5% point to significant profitability pressure
- Operating cash flow of -$125.9M and free cash flow of -$137.5M indicate weak cash generation quality
- Long-term debt of $1.53B with negative interest coverage creates elevated balance-sheet and refinancing risk if earnings do not recover
Key Metrics to Watch
- Operating cash flow and path to positive FCF generation
- Revenue growth stabilization and gross profit leverage
- Operating margin expansion toward breakeven and positive levels
- Debt covenant compliance status given negative earnings and cash burn
- Cash depletion trajectory and refinancing requirements
- Operating cash flow and free cash flow recovery
- Operating margin improvement and interest coverage stabilization
EDGEWELL PERSONAL CARE Co (EPC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
EDGEWELL PERSONAL CARE Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
EPC Profit Margin, ROE & Profitability Analysis
EPC vs Consumer Sector: How EDGEWELL PERSONAL CARE Co Compares
How EDGEWELL PERSONAL CARE Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EDGEWELL PERSONAL CARE Co Stock Overvalued? EPC Valuation Analysis 2026
Based on fundamental analysis, EDGEWELL PERSONAL CARE Co shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EDGEWELL PERSONAL CARE Co Balance Sheet: EPC Debt, Cash & Liquidity
EPC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: EDGEWELL PERSONAL CARE Co's revenue has shown modest growth of 5% over the 5-year period. The most recent EPS of $2.21 reflects profitable operations.
EPC Revenue Growth, EPS Growth & YoY Performance
EPC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $516.6M | -$2.1M | $-0.22 |
| Q1 2026 | $415.1M | -$2.1M | $-0.04 |
| Q3 2025 | $627.2M | -$2.1M | $0.62 |
| Q2 2025 | $580.7M | -$2.1M | $0.55 |
| Q1 2025 | $478.4M | -$2.1M | $-0.04 |
| Q3 2024 | $647.8M | $4.8M | $0.98 |
| Q2 2024 | $598.4M | $4.8M | $0.37 |
| Q1 2024 | $469.1M | $4.8M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EDGEWELL PERSONAL CARE Co Dividends, Buybacks & Capital Allocation
EPC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for EDGEWELL PERSONAL CARE Co (CIK: 0001096752)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EPC
What is the AI rating for EPC?
EDGEWELL PERSONAL CARE Co (EPC) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EPC's key strengths?
Claude: Gross margin of 40.1% indicates underlying product pricing power and core manufacturing efficiency. Moderate leverage with Debt/Equity of 0.86x provides some financial flexibility relative to assets. ChatGPT: Solid gross margin of 38.1%, indicating the core product portfolio still retains pricing power and category profitability. Current ratio of 2.12x and cash balance of $223.3M provide some near-term liquidity support.
What are the risks of investing in EPC?
Claude: Operating income is negative at -$500K; company cannot service debt from operations (interest coverage -0.0x). Negative free cash flow of -$97.2M is unsustainable; cash reserves will deplete within 3 years at current burn rate. ChatGPT: Operating margin of -4.5% and net margin of -15.5% point to significant profitability pressure. Operating cash flow of -$125.9M and free cash flow of -$137.5M indicate weak cash generation quality.
What is EPC's revenue and growth?
EDGEWELL PERSONAL CARE Co reported revenue of $942.3M.
Does EPC pay dividends?
EDGEWELL PERSONAL CARE Co pays dividends, with $14.5M distributed to shareholders in the trailing twelve months.
Where can I find EPC SEC filings?
Official SEC filings for EDGEWELL PERSONAL CARE Co (CIK: 0001096752) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EPC's EPS?
EDGEWELL PERSONAL CARE Co has a diluted EPS of $-1.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EPC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, EDGEWELL PERSONAL CARE Co has a SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EPC stock overvalued or undervalued?
Valuation metrics for EPC: ROE of -5.3% (sector avg: 18%), net margin of -8.1% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy EPC stock in 2026?
Our dual AI analysis gives EDGEWELL PERSONAL CARE Co a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EPC's free cash flow?
EDGEWELL PERSONAL CARE Co's operating cash flow is $-71.6M, with capital expenditures of $25.6M. FCF margin is -10.3%.
How does EPC compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -8.1% (avg: 8%), ROE -5.3% (avg: 18%), current ratio 1.81 (avg: 1.5).