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what it is
Edgewell sells shave, sun, and skin care products, and it sold feminine care for $340M in 2026.
how it gets paid
Last year Edgewell Personal made $2.2B in revenue. Wet Shave was the main engine at $1.21B, or 55% of sales.
why growth slowed
Revenue fell 1.3% last year. Plus, the strength of the u.s. dollar has hindered some of the gains from global markets, and will likely temper the benefit of volume gains.
what just happened
Edgewell posted $423M of revenue and a -$1.41 EPS, with gross margin at 38.1%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
85/100 earnings predictability — you can trust these numbers
8.8x trailing p/e — the market's not buying it — or you found a deal
2.7% dividend yield — cash in your pocket every quarter
4.5% return on capital — nothing to write home about
xvary composite: 49/100 — below average
What they do
Edgewell sells shave, sun, and skin care products, and it sold feminine care for $340M in 2026.
You buy shave and skin products in the same aisle, and Edgewell gets 55% of sales from Wet Shave. That is a bigger base than Sun/Skin Care at 33%, so the company is not leaning on one tiny line. Walmart took 17.4% of fiscal 2025 sales, so one buyer can squeeze your shelf space and your price.
How they make money
$2.2B
annual revenue · their business grew -1.3% last year
Wet Shave
$1.21B
Sun/Skin Care
$0.73B
Feminine Care
$0.26B
The products that matter
core personal care portfolio
Shave and personal care brands
$2.2B revenue base
the current feed does not break revenue out by brand, which is useful information on its own. The only hard operating number here is the full $2.2B business, and it shrank 1.3% last year.
entire story
portfolio reshaping
Feminine care divestiture
$340M proceeds
management sold the feminine hygiene business for $340M in early february, with the cash aimed at debt reduction and growth initiatives. In plain English: the portfolio got smaller because the balance sheet needed attention.
capital reset
what the numbers are really saying
Remaining categories
$2B fy2026 revenue est
after the sale, the remaining business has less room to hide. If the company is heading from $2.2B to $2B, the simpler portfolio only matters if the core categories stop sliding.
proof needed
Key numbers
$1.5B
long-term debt
Your first contrast is ugly: debt is about $500M bigger than the roughly $1B market cap.
8.8x
trailing p/e
You pay 8.8x earnings for a business with 4.3% operating margin, which is cheap because the business is not easy.
2.7%
dividend yield
You get 2.7% cash back while waiting for the turnaround.
4.3%
operating margin
A 4.3% margin means $100 of sales leaves $4.30 before interest and taxes.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $1.5B (60% of capital)
- net profit margin 6.2% — keeps 6 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in EPC 3 years ago → it's now worth $5,420.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
Edgewell posted $423M of revenue and a -$1.41 EPS, with gross margin at 38.1%.
Revenue was up 2% vs. prior year, but the EPS line was ugly at -3425% vs. prior year. That is a sales bump with a profit hole.
$423M
revenue
-$1.41
eps
38.1%
gross margin
gross margin
The 38.1% gross margin matters because it shows the business still makes money before the rest of the bill arrives.
-
edgewell personal care got off to a slow start this year. (fiscal 2026 began october 1st.) during the first quarter, profits tumbled, coming in at $0.03 a share, compared to the $0.07-per-share showing in the year-ago period, and sales plummeted nearly 11% vs. prior year.
-
the company will probably struggle in the near term.tariff exposure, inflationary pressures, and rising operating costs may well weigh on margins in the coming months.
-
wavering consumer sentiment could hurt sales across several of its product categories.plus, the strength of the u.s. dollar has hindered some of the gains from global markets, and will likely temper the benefit of volume gains overseas.
-
in all, we think the top line will decline 5%-10% in fiscal 2026, owing to operational challenges and the impact of the divestiture of its feminine care business, while earnings per share will decrease 25%-30%.though we expect some recovery in fiscal 2027, results will probably come in well below the top- and bottom-line showings of past years.
-
edgewell has been reorganizing its business.the company sold its feminine hygiene business to essity, a swedish global health and hygiene company, for $340 million in early february. it plans to use the proceeds from the sale to strengthen the balance sheet and pay down long-term debt and its revolving credit facility, and to support growth initiatives. management has been simplifying its roster over the past few years, focusing on its shave, sun and skincare, and grooming segments.
source: company earnings report, 2026
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What could go wrong
Edgewell already has the three ingredients you do not want to see together: revenue down 1.3%, net margin at 4.7%, and $1.5B of long-term debt. That makes the next mistake more expensive than usual.
high
top-line erosion
annual revenue already slipped 1.3%, and fiscal Q1 sales were down nearly 11% from a year ago. If that keeps up, the low multiple does not protect you — it just describes the problem.
the current fy2026 revenue estimate is $2B versus $2.2B last year.
high
thin margin structure
tariffs, inflation, and higher operating costs matter more when net margin is only 4.7%. This is not a business with much shock absorption.
Q1 EPS fell to $0.03 from $0.07 from a year ago.
med
balance-sheet drag
$1.5B of long-term debt equals 60% of capital. The $340M asset sale helps, but it also confirms management is still cleaning up yesterday's structure while trying to fix today's operations.
debt reduction has to show up in the numbers, not just the strategy language.
med
portfolio execution risk
after selling the feminine care business, Edgewell is more reliant on the remaining categories to perform. If shave, sun, and grooming do not stabilize, the simpler story just becomes a smaller story.
with return on capital at 3.0%, the business is not earning the benefit of the doubt.
with $2.2B in revenue, a 4.7% net margin, and $1.5B in debt, this is a business where even modest operating pressure can show up quickly in earnings.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarter's revenue line
after a nearly 11% sales drop in fiscal Q1, you need to know whether the decline is easing or getting worse. That is the first proof point.
metric
return on capital
3.0% is weak for a branded consumer business. If that number does not improve, the cheap valuation is probably just accurate.
risk
cost pressure versus margin
tariffs, inflation, and operating costs matter more when net margin is only 4.7%. This is where bad surprises tend to show up first.
trend
debt paydown after the asset sale
the $340M divestiture should make the balance sheet look better from here. If debt stays stubbornly high, the cleanup thesis weakens fast.
Analyst rankings
short-term outlook
below average
momentum score 4 — analysts see underperformance risk from here. in human-speak, they are not paying up for a turnaround yet.
risk profile
average
stability score 3 — this sits in the middle of the pack on balance-sheet and share-price risk.
chart momentum
bottom 5%
technical score 5 — the stock has been one of the market's laggards. Price action agrees with the weak operating story.
earnings predictability
85 / 100
the numbers are fairly consistent. That's useful, but predictable decline is still decline.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 69 buyers vs. 86 sellers in 4q2025. total institutional holdings: 49.2M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$16
$34
$22
current price
$25
target midpoint · +12% from current · 3-5yr high: $45 (+100% · 21% ann'l return)
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