Edgewell Personal Care has gotten torched over the last six months - since April 2025, its stock price has dropped 36.8% to $19.54 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
Is now the time to buy Edgewell Personal Care, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free for active Edge members.
Why Do We Think Edgewell Personal Care Will Underperform?
Despite the more favorable entry price, we're sitting this one out for now. Here are three reasons why EPC doesn't excite us and a stock we'd rather own.
1. Core Business Falling Behind as Organic Growth Slumps
When analyzing revenue growth, we care most about organic revenue growth. This metric captures a business’s performance excluding one-time events such as mergers, acquisitions, and divestitures as well as foreign currency fluctuations.
The demand for Edgewell Personal Care’s products has barely risen over the last eight quarters. On average, the company’s organic sales have been flat. 
2. EPS Trending Down
Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Sadly for Edgewell Personal Care, its EPS declined by 2.6% annually over the last three years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.
3. Free Cash Flow Margin Dropping
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Edgewell Personal Care’s margin dropped by 4.9 percentage points over the last year. This along with its unexciting margin put the company in a tough spot, and shareholders are likely hoping it can reverse course. If the trend continues, it could signal it’s becoming a more capital-intensive business. Edgewell Personal Care’s free cash flow margin for the trailing 12 months was 1.9%.
Final Judgment
We see the value of companies helping consumers, but in the case of Edgewell Personal Care, we’re out. After the recent drawdown, the stock trades at 6.7× forward P/E (or $19.54 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are more exciting stocks to buy at the moment. Let us point you toward the most dominant software business in the world.
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