ENR - Embedded Expectations Analysis - 2021 09 23
Energizer Holdings, Inc. (ENR:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 29.5x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may be concerned about supply chain disruptions, auto care business margins, and private-labeled product competition.Specifically, management may have concerns about product sourcing, their margin mix from the auto care business, and increased uncertainty in consumption trends. Furthermore, management may lack confidence in their ability to cater to the increase in consumer do-it-yourself (DIY) behaviors, sustain Armor All innovation, and continue to compete on innovation, brand building, and advertising spend. Finally, they may have concerns about inflationary headwinds, and they may be downplaying concerns about upticks competitor private-labeled product sales.
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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