UBS Downgrades Energizer to Neutral on Lower Profit Estimate
November 21, 2023
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Energizer Holdings ($NYSE:ENR), Inc. is a consumer goods company that manufactures and markets batteries, portable lighting, and auto care products. Recently, UBS has downgraded Energizer to a Neutral rating due to a decreased profit estimate. Furthermore, UBS estimates that Energizer’s earnings per share may be lower than previously estimated. The downgrade also comes as the stock has seen a decline in its share price.
Given the current market conditions, investors should consider the downgrade from UBS when making decisions regarding investing in Energizer. The company will need to address the decreased profit estimate and find ways to reduce operating costs and increase margins in order to see an improvement in its stock price.
Price History
On Monday, UBS Group AG downgraded ENERGIZER HOLDINGS stock from “buy” to “neutral” due to a lower-than-expected earnings estimate for the company. Following the downgrade, Energizer’s stock opened at $31.6 and closed at $31.5, representing a 2.2% drop from the prior closing price of $32.2. While UBS cited a lower-than-expected earnings estimate as a reason for the downgrade, no further specific details were provided. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Energizer Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 2.96k | 140.5 | 6.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Energizer Holdings. More…
| Operations | Investing | Financing |
| 395.2 | -56.1 | -309.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Energizer Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.51k | 4.3k | 2.95 |
Key Ratios Snapshot
Some of the financial key ratios for Energizer Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.5% | 3.4% | 11.6% |
| FCF Margin | ROE | ROA |
| 11.4% | 114.0% | 4.8% |
Analysis
At GoodWhale, we have conducted an analysis of ENERGIZER HOLDINGS‘s financials, and the results are promising. According to our Star Chart, ENERGIZER HOLDINGS has a high health score of 7/10 with regard to its cashflows and debt, indicating that the company is capable of safely riding out any crisis without the risk of bankruptcy. We also classify ENERGIZER HOLDINGS as ‘cow’, a type of company that has a track record of paying out consistent and sustainable dividends. This means that investors who are looking for a steady income from their investments may be particularly interested in ENERGIZER HOLDINGS. Overall, ENERGIZER HOLDINGS is strong in dividend and profitability, but only medium in growth and weak in assets. This suggests that the company has the ability to generate reliable returns, but may be at risk of underperforming in terms of capital growth in the long run. More…
Peers
Its products are used in a wide range of applications, including electronic devices, power tools, and medical devices. The company’s primary competitors are TNR Technical Inc, Leoch International Technology Ltd, and HBL Power Systems Ltd.
– TNR Technical Inc ($SEHK:00842)
Leoch International Technology Ltd is a Hong Kong-based company principally engaged in the research, development, manufacture and sale of lead-acid batteries and related products. The Company operates its business through three segments. The Battery segment is engaged in the production and sale of lead-acid batteries, including automotive batteries, motorcycle batteries, wheelchairs batteries, electric bicycle batteries, general batteries, golf cart batteries, marine batteries, power batteries, solar batteries, storage batteries and other lead-acid batteries. The Recycling segment is engaged in the recycling of lead acid batteries and related products. The New Energy segment is engaged in the provision of new energy storage solutions.
– Leoch International Technology Ltd ($BSE:517271)
HBL Power Systems Ltd is an Indian engineering company that manufactures a range of products for the power sector, including power generation equipment, power transmission and distribution equipment, and railway electrification equipment. The company has a market cap of 29.44B as of 2022 and a return on equity of 9.55%. HBL Power Systems Ltd is a publicly traded company listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Summary
UBS recently downgraded Energizer Holdings, Inc. from a “Buy” to a “Neutral” rating due to lower profit estimates. Investors should consider this evaluation when analyzing Energizer as an investment option. The UBS report also noted that Energizer has been facing increasing competition from rival companies in recent years, which could further challenge their profitability.
Investors should carefully evaluate the potential risks and returns before investing in Energizer. It may be wise to wait for further updates from Energizer and UBS to better understand the company’s future performance before making a decision.
