Energizer Holdings Inc (ENR, Financial), a prominent player in the industrial products sector, has recently witnessed a notable uptick in its stock performance. Over the past week, the company's shares have surged by 10.83%, and over the last three months, they have gained an impressive 11.94%. Currently, Energizer boasts a market capitalization of $2.29 billion. According to GuruFocus's valuation metrics, the stock is fairly valued at $31.92, closely aligned with the GF Value of $31.13. This valuation marks a shift from three months ago when the stock was considered modestly undervalued.
Overview of Energizer Holdings Inc
Energizer Holdings Inc is a key manufacturer and distributor in the battery and lighting product sectors. The company's product line includes household batteries, specialty batteries, and various lighting products, which are marketed under well-known brands such as Energizer, Rayovac, Varta, and Eveready. Energizer's offerings extend to lithium, alkaline, carbon-zinc, nickel-metal hydride, zinc-air, and silver oxide batteries. Additionally, the company has ventured into auto care products across multiple categories. Predominantly, Energizer's revenue is generated from the Americas, although it maintains a significant international presence.
Assessing Energizer's Profitability
Energizer's financial health is robust, with a Profitability Rank of 7/10, indicating strong profitability within its industry. The company's Operating Margin stands at 12.36%, which is higher than 73.22% of its peers. In terms of return metrics, Energizer's Return on Equity (ROE) is 5.91%, and its Return on Assets (ROA) is 0.23%, both metrics surpassing a significant number of competitors. The Return on Invested Capital (ROIC) is also commendable at 5.94%. Over the past decade, Energizer has been profitable in 7 out of 10 years, showcasing its financial resilience.
Growth Trajectory and Future Prospects
Despite its strong profitability, Energizer's Growth Rank is relatively low at 1/10, indicating sluggish growth compared to industry peers. The company has experienced modest revenue and EPS growth over the past 3 to 5 years. Specifically, the 3-Year Revenue Growth Rate per Share is 1.20%, and the 5-Year Revenue Growth Rate per Share is 6.70%. Looking ahead, Energizer's estimated future EPS growth rate stands at 6.48%, which is relatively low compared to industry standards.
Key Shareholders and Market Influence
Notable shareholders in Energizer include Mario Gabelli (Trades, Portfolio), holding 1,438,350 shares, which represents 2% of the company. Other significant holders include HOTCHKIS & WILEY and Lee Ainslie (Trades, Portfolio), although their holdings are comparatively smaller. These investors' commitments reflect a strong belief in the company's market strategy and management effectiveness.
Competitive Landscape
Energizer competes with companies like Bloom Energy Corp (BE, Financial), Hayward Holdings Inc (HAYW, Financial), and Encore Wire Corp (WIRE, Financial), which have market capitalizations of $2.68 billion, $3.18 billion, and $4.58 billion, respectively. This competitive environment challenges Energizer to continuously innovate and efficiently manage its resources to maintain a competitive edge.
Conclusion
In summary, Energizer Holdings Inc presents a mixed investment profile. The company is fairly valued with stable profitability metrics and has demonstrated financial resilience over the years. However, its growth prospects appear limited when compared to the broader industry dynamics. Investors should weigh these factors carefully, considering both the company's robust profitability and its modest growth rates in a competitive landscape.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
