Energizer Holdings, Inc. (ENR) stock analysis

P/E below its 5-year median

Energizer's P/E of 20.4 is below its own 5-year median of 26.1.

P/E below the industry

Energizer's P/E of 20.4 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 31.8.

EV/EBITDA below its 5-year median

Energizer's EV/EBITDA of 11.9 is below its 5-year median of 13.2.

P/B above the industry

Energizer's price-to-book of 8.13 is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 1.63.

Trading below fair value

The share price of $24.13 is below our fair value estimate of $42.30.

Margin of safety over 20%

The price is 43.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 2.2% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 1.6%.

Guidance issued

The latest outlook (fourth quarter Adjusted Earnings per share, Aug 4, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 36.8% over the last twelve months, against 42.2% a year earlier.

Return on equity over 15%

Return on equity was 42.2% over the last twelve months and averaged 42.8% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Energizer's return on equity of 42.2% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -30.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 2.7% over the last twelve months, against a 5-year average of 2.4%.

Net margin above the industry

Energizer's net margin of 2.7% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -64.6%.

High debt

Debt is 1627% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 1342% five years ago to 1627%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 6.6% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.07 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.15; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Energizer paid dividends worth 5.0% of the share price over the last twelve months.

Yield above Treasuries

The 5.0% yield is above the 4.7% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Energizer yields 5.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Not covered by earnings

Dividends take 104% of net income, leaving little room.

Covered by free cash flow

Dividends take 56.4% of free cash flow.