Lower costs should enhance its appeal

Article Excerpt

Despite owning some of the world’s best-known personal care brands, the shares of Edgewell are down over 60% since it became a separate company in July 2015. However, a new cost-cutting plan should improve its profitability and let it pay down its high debt load. The company’s relatively small market cap also increases its appeal as a potential takeover target for larger consumer products makers. EDGEWELL PERSONAL CARE CO. $34 is a buy for aggressive investors. The company (New York symbol EPC; Consumer sector; Shares outstanding: 48.7 million; Market cap: $1.7 billion; Dividend yield: 1.8%; Takeover Target Rating: Highest; www.edgewell.com) has three main businesses: Wet Shave (55% of sales, 56% of earnings) makes razors, shaving gels and creams, mainly under the Wilkinson Sword and Schick brands; Sun and Skin Care (33%, 36%) makes sunscreen lotions (under the Hawaiian Tropic and Banana Boat brands), skin creams (Bulldog) and hand wipes (Wet Ones); and Feminine Care (12%, 8%), which makes tampons, pads and liners under the Playtex, Stayfree, Carefree and o.b. brands. The company generates…