Why Energizer Is Poised to Keep Going
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, battery specialist Energizer Holdings has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Energizer, and see what CAPS investors are saying about the stock right now.
Energizer facts
Headquarters (founded) | St. Louis, Mo. (1999) |
Market Cap | $6.7 billion |
Industry | Household products |
Trailing-12-Month Revenue | $4.6 billion |
Management | CEO Ward Klein (since 2005) CFO Daniel Sescleifer (since 2000) |
Return on Equity (average, past 3 years) | 16.4% |
Cash / Debt | $850.7 million / $2.5 billion |
Dividend Yield | 1.5% |
Competitors | Panasonic Procter & Gamble Spectrum Brands |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 339 members who have rated Energizer believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, All-Star joryko, succinctly summed up the bull case for our community:
Simply put, Energizer has essentially become a Personal Care company. With 54% of its sales coming from its Personal Care segment, the company's diversification away from its battery operations has been truly amazing and effective.
Perhaps more importantly however, is that Energizer's line of personal care items have not only become the main source of revenues, but grew at a 17% clip in in 2012. Comprised of the Schick, Edge, Playtex, Skintex, Wet Ones, and Banana Boat brands -- just to name a few -- Energizer has assembled a strong and growing portfolio of big-name brands.
Facing a secular decline in battery sales, Energizer has begun scaling back on its battery operations, maintaining its profitability. Despite its decline, the Energizer Bunny still leads the way and is quietly profitable.
Throw in a 2% [dividend yield] and I am willing to hold this one far into the future. 5+ years.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Energizer may not be your top choice.
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The article Why Energizer Is Poised to Keep Going originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Energizer Holdings and Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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