Energizer Holdings (ENR) continues to draw interest as a global supplier of household and specialty batteries, auto care products, and lighting. Its stock recently closed at US$20.65, giving it a market value near US$1.4b.
See our latest analysis for Energizer Holdings.
Over the past year, Energizer Holdings has seen mixed momentum, with a 90 day share price return of 3.30% but a 1 year total shareholder return that declined 8.25%, pointing to investor reassessment of its risk and income profile.
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After a recent 90 day gain but a weaker 1 year outcome, Energizer Holdings sits at US$20.65 with only a small gap to analyst targets. Is it worth buying now, or waiting for a cheaper entry point?
On simple numbers, Energizer Holdings looks inexpensive, with a P/E of 7.2x alongside a recent close of $20.65 and evidence of strong earnings growth.
The P/E ratio compares what investors are paying for each dollar of current earnings, which is especially relevant for a business like Energizer Holdings that already generates consistent profits rather than being purely growth focused.
Here, the stock trades on a P/E of 7.2x while earnings have grown very strongly in the most recent year and at a solid pace over the past 5 years. This suggests the market could be assigning a relatively low price tag to those profits. The company is also described as trading at good value compared to peers and industry, with its P/E well below the peer average of 23.3x, the global Household Products industry average of 16.7x, and an estimated fair P/E of 14.2x that the market could potentially move toward if sentiment changes.
Explore the SWS fair ratio for Energizer Holdings
Result: Price-to-Earnings of 7.2x (UNDERVALUED)
However, Energizer Holdings still faces risks, including a multiyear total shareholder return that declined over 30% and ongoing pressure on its auto care and battery categories.
Find out about the key risks to this Energizer Holdings narrative.
While the 7.2x P/E suggests Energizer Holdings looks inexpensive against peers and its own fair ratio of 14.2x, the SWS DCF model points to a very different picture, with an estimated future cash flow value of $94.37 per share versus the current $20.65. That kind of gap can signal either opportunity or a risk of over optimistic assumptions. Which side do you think is closer to reality?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Energizer Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 38 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
If the mixed signals around Energizer Holdings leave you uncertain, take a closer look at both sides of the story, weigh the risks against the potential rewards, and check out the 5 key rewards and 2 important warning signs.
If Energizer Holdings has sharpened your focus on value, do not stop here. Use powerful screeners to surface fresh opportunities that fit your goals.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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