Take This Into Account Before Investing in Energizer (ENR)

Now trading at a price of $34.22, Energizer has moved -8.1% so far today. In contrast, the S&P 500 index moved -0.6%. Read below for a basic value analysis of Energizer.

Energizer shares moved 6.6% over the last 52 weeks, with a high of $37.89 and a low of $24.81. During this time, the stock outperformed the S&P 500 index by 14.4%. As of January 2022, the company's 50-day average price is $35.0. Energizer Holdings, Inc., together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. The mid-cap Industrials company has 5,500 full time employees and is based in Saint Louis, MO. Energizer has returned a 3.2% dividend yield over the last 12 months.

Operating Margins Higher Than the 9.97% Industry Average, but Excessive Leverage:

2019-09-30 2020-09-30 2021-09-30 2022-09-30
Revenue (MM) $2,494 $2,745 $3,022 $3,050
Revenue Growth n/a 10.03% 10.08% 0.95%
Gross Margins 40.2% 39.4% 38.4% 36.7%
Gross Margins Growth n/a -1.99% -2.54% -4.43%
Operating Margins 11.4% 13.1% 13.8% 13.2%
Operating Margins Growth n/a 14.91% 5.34% -4.35%
Earnings Per Share $0.58 -$1.59 $2.11 $3.06
EPS Growth n/a -374.14% 232.7% 45.02%
Free Cash Flow (MM) $94 $311 $115 -$92
FCF Growth n/a 229.56% -63.1% -179.7%
Capital Expenditures (MM) -$55 -$65 -$65 -$92
Net Debt / EBITDA 8.33 7.9 5.98 6.31

Energizer Is Overvalued:

Compared to the Industrials sector's average of 21.46, Energizer has a trailing twelve month P/E ratio of 11.2 and, according to its EPS guidance of 3.35, an expected P/E ratio of 10.2. Energizer's PEG ratio is -0.51 based on its -21.75% annual average growth rate of historical and projected earnings per share. This indicates that the company's shares are overvalued.

Energizer's P/B ratio is 18.7 compared to its sector average of 3.7. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 422.6% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 1.04 * 1.832) = $6.55

Energizer Is the Subject of Mixed Market Indicators:

10 analysts are following Energizer and have set target prices ranging from $33 to $45 per share. On average, they have given the company a rating of buy. At the current price of $34.22, ENR is trading -10.65% away from its average analyst target price of $38.3 per share, implying an analyst consensus of some upside potential for the stock.

The company has an average amount of shares sold short since 5.5% of the company's shares are tied to short positions. Institutions own 89.9% of Energizer's shares, while the insider ownership rate stands at 6.36%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $258,267,657.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.