ENR - Embedded Expectations Analysis - 2020 08 07
Energizer Holdings, Inc. (ENR:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 15.6x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about their sales growth, supply chain disruptions, and liquiditySpecifically, management may have concerns about the sustainability of growth in their battery business and their ability to resolve supply disruptions. In addition, they may lack confidence in their ability to grow organic sales, and they may be concerned about their ability to sustain their current liquidity levels. Furthermore, management may lack confidence in their ability to reduce debt, and e-commerce growth across multiple categories. They may also have concerns about the sustainability of demand in their Auto Care business, and they may lack confidence in their ability to maintain advertising and promotional (A&P) investments. Finally, they may be downplaying concerns about their channels being affected by regulatory restrictions
Energizer Holdings is a manufacturer, marketer and distributor of household and specialty batteries, portable lights, and automotive appearance, performance, refrigerants and freshener products. The company provides batteries using various technologies including lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide. The company manufactures, distributes and markets lighting products including headlights, lanterns, children's lights and area lights. The company also provides auto care products in the appearance and fragrance categories including protectants, wipes, tire and wheel care products, glass cleaners, leather care products, air fresheners and washes.
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