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1. Company Snapshot

1.a. Company Description

Energizer Holdings, Inc., together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide.It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide batteries under the Energizer and Eveready brands, as well as primary, rechargeable, specialty, and hearing aid batteries.The company also provides headlights, lanterns, and children's and area lights, as well as flash lights under the Energizer, Eveready, Rayovac, Hard Case, Dolphin, Varta, and WeatherReady brands.


In addition, it licenses the Energizer and Eveready brands to companies developing consumer solutions in gaming, automotive batteries, portable power for critical devices, LED light bulbs, generators, power tools, household light bulbs, and other lighting products.Further, the company designs and markets automotive fragrance and appearance products, including protectants, wipes, tire and wheel care products, glass cleaners, leather care products, air fresheners, and washes to clean, shine, refresh, and protect interior and exterior automobile surfaces under the brand names of Armor All, Nu Finish, Refresh Your Car!, LEXOL, Eagle One, California Scents, Driven, and Bahama & Co; STP branded fuel and oil additives, functional fluids, and other performance chemical products; and do-it-yourself automotive air conditioning recharge products under the A/C PRO brand name, as well as other refrigerant and recharge kits, sealants, and accessories.It sells its products through direct sales force, distributors, and wholesalers; and through various retail and business-to-business channels, including mass merchandisers, club, electronics, food, home improvement, dollar store, auto, drug, hardware, e-commerce, convenience, sporting goods, hobby/craft, office, industrial, medical, and catalog.


Energizer Holdings, Inc.was incorporated in 2015 and is headquartered in Saint Louis, Missouri.

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1.b. Last Insights on ENR

Energizer Holdings' recent performance was negatively impacted by a Q4 earnings miss, with adjusted EPS of $1.05, falling short of the Zacks Consensus Estimate of $1.12. Organic sales declined 2.2% year-over-year, while rising tariff-related costs affected profitability. The company's Project Momentum, aimed at cost savings, has shown progress but faces ongoing challenges. Management cites softening organic demand and tariff-related costs as key headwinds, casting uncertainty on the company's near-term prospects. (Source: Zacks Consensus Estimate)

1.c. Company Highlights

2. Energizer Holdings' Fiscal 2025 Earnings: A Strong Performance Amidst Challenges

Energizer Holdings, Inc. reported a robust fiscal 2025, with adjusted earnings per share (EPS) increasing 6% to $3.52, driven by organic growth, disciplined cost management, and manufacturing production credits. The company's net sales growth was achieved in a challenging environment, fueled by significant growth in e-commerce, international expansion, and innovation in auto care. The actual EPS came out at $1.05, slightly lower than the estimated $1.12. Project Momentum achieved over $200 million in savings to date and was extended into a $3 billion program, underscoring the company's commitment to cost efficiency.

Publication Date: Nov -24

📋 Highlights
  • Adjusted EPS Growth:: Increased 6% to $3.52 in fiscal 2025, driven by organic growth and cost management.
  • E-commerce Expansion:: Achieved 35% Q4 growth and 25% annual growth, with 15% projected for fiscal 2026.
  • Project Momentum Savings:: Generated over $200 million in savings, extended to a $3 billion program.
  • Shareholder Returns:: Returned $177 million via dividends and buybacks, reducing shares by 5% in fiscal 2025.
  • Debt Reduction Plan:: Aims to pay down $150–200 million in debt, with $80 million repaid in fiscal 2025.

Operational Highlights

The company's e-commerce channel was a notable growth driver, with a 35% increase in Q4 and 25% growth for the year, highlighting the success of its digital strategy. For fiscal 2026, Energizer expects 15% growth in e-commerce, indicating continued focus on this channel. The company returned $177 million to shareholders in fiscal 2025 through dividends and share repurchases, reducing outstanding shares by roughly 5%, demonstrating its commitment to shareholder value.

Outlook and Challenges

For fiscal 2026, Energizer anticipates a challenging first quarter due to a difficult sales comparison, transitional tariff-related costs, and moderating consumer sentiment. However, it expects double-digit adjusted EPS growth over the final three quarters, driven by the benefits of network realignment, accelerated APS integration, and Project Momentum savings. The company assumes the battery category will be down roughly 2% for the year and trade policies will remain in place, indicating a cautious outlook.

Valuation and Financial Metrics

Energizer's current valuation metrics, including a P/E Ratio of 5.23, P/B Ratio of 7.36, and Dividend Yield of 6.57%, suggest a relatively attractive profile. The company's Return on Equity (ROE) stands at 152.33%, indicating strong profitability. With a Net Debt / EBITDA ratio of 5.8, Energizer's leverage is notable, but it expects to generate over 10% free cash flow and plans to pay down $150-200 million of debt, which should help alleviate this concern.

Category Dynamics and Consumer Behavior

The consumer environment has softened, with consumers seeking value and shifting channels to find it. Energizer's broad portfolio of premium and value brands positions it well to meet consumers' changing needs. The company expects the battery category to decline by 2-4% in fiscal 2026 but anticipates bouncing back in future years as consumers return to historical purchasing patterns. The company's ability to capture share across different time periods and its focus on e-commerce growth are positives.

3. NewsRoom

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Edgestream Partners L.P. Purchases Shares of 288,931 Energizer Holdings, Inc. $ENR

Dec -03

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Ensign Peak Advisors Inc Sells 10,850 Shares of Energizer Holdings, Inc. $ENR

Dec -01

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Meet 33 Ideal "Safer" November Small/MidCap Value DiviBuys Of The S&P600

Nov -26

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Why Energizer Stock Plunged Today

Nov -18

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Energizer Holdings, Inc. (ENR) Q4 2025 Earnings Call Transcript

Nov -18

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Energizer's stock suffers record selloff as tariffs prove a drain on profits

Nov -18

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Energizer Q4 Earnings Miss Estimates, Organic Sales Decline Y/Y

Nov -18

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Energizer (ENR) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Nov -18

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.72%)

6. Segments

Batteries

Expected Growth: 2.0%

Energizer Holdings' battery segment growth is driven by increasing demand for portable power solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, such as the introduction of new battery technologies, and its strong brand recognition also contribute to its 2.0% growth.

Auto Care

Expected Growth: 0.8%

Stable demand for auto care products, driven by increasing vehicle ownership and miles driven, contributes to 0.8% growth. Energizer's established brand presence and distribution network also support growth. Additionally, the company's focus on innovation, such as battery-powered car care products, helps to drive sales.

Lights

Expected Growth: 1.2%

Energizer Holdings' 1.2% growth in lights segment is driven by increasing demand for energy-efficient LED lighting, rising adoption in emerging markets, and strategic product innovations. Additionally, the company's focus on e-commerce and omnichannel retailing has expanded its customer reach, contributing to the segment's growth.

7. Detailed Products

Batteries

Energizer Holdings, Inc. offers a wide range of batteries, including alkaline, nickel-cadmium, and lithium batteries, for various applications such as flashlights, toys, and other devices.

Flashlights

Energizer Holdings, Inc. offers a variety of flashlights, including LED flashlights, lanterns, and headlamps, for outdoor and indoor use.

Lanterns

Energizer Holdings, Inc. offers a range of lanterns, including LED lanterns, camping lanterns, and emergency lanterns, for outdoor and indoor use.

Auto Care

Energizer Holdings, Inc. offers a range of auto care products, including batteries, starters, and alternators, for vehicles.

Specialty Batteries

Energizer Holdings, Inc. offers a range of specialty batteries, including watch batteries, hearing aid batteries, and camera batteries, for specific applications.

Lighting Products

Energizer Holdings, Inc. offers a range of lighting products, including LED lights, candles, and lanterns, for indoor and outdoor use.

8. Energizer Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Energizer Holdings, Inc. is medium due to the presence of alternative battery brands and energy storage solutions. However, Energizer's strong brand recognition and diversified product portfolio mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the market and the lack of significant purchasing power among individual consumers. Energizer's strong brand presence and wide distribution network also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large suppliers of raw materials and components. However, Energizer's diversified supply chain and long-term contracts with suppliers mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the battery manufacturing industry, including significant capital requirements and regulatory hurdles. Energizer's established brand and distribution network also create a high barrier to entry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established competitors such as Duracell and Panasonic. The market is highly competitive, with companies competing on price, quality, and innovation.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 94.25%
Debt Cost 6.11%
Equity Weight 5.75%
Equity Cost 9.16%
WACC 6.28%
Leverage 1639.58%

11. Quality Control: Energizer Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Energizer

A-Score: 5.1/10

Value: 6.6

Growth: 4.1

Quality: 5.1

Yield: 8.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

Stock-Card
Preformed Line Products

A-Score: 5.0/10

Value: 3.6

Growth: 6.3

Quality: 6.0

Yield: 0.0

Momentum: 9.5

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Powell Industries

A-Score: 4.9/10

Value: 1.7

Growth: 8.4

Quality: 7.6

Yield: 2.0

Momentum: 7.5

Volatility: 2.3

1-Year Total Return ->

Stock-Card
Ultralife

A-Score: 4.1/10

Value: 6.5

Growth: 8.0

Quality: 5.4

Yield: 0.0

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

Stock-Card
Servotronics

A-Score: 4.1/10

Value: 6.2

Growth: 3.0

Quality: 5.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

Stock-Card
RF Industries

A-Score: 3.9/10

Value: 4.7

Growth: 3.7

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.21$

Current Price

18.21$

Potential

-0.00%

Expected Cash-Flows