Energizer (ENR)
NYSEConsumer StaplesElectrical Equipment & PartsSnapshot 2026-09-04
$21.23+2.81%
Close 2026-09-04 · 1-day change
NYSEConsumer StaplesElectrical Equipment & PartsSnapshot 2026-09-04
Broken: Primary pillar broken — Gross margin near 40% or higher: 38.2% vs 40.0%.
Energizer is improving profit margins, with gross margin rising to 40.2%. Management raised 2026 EPS guidance to $3.30-$3.60, aiming for the high end. Operating cash flow improved to $147.8 million in the first half of 2026. The stock trades cheap at a PE of 6.0 versus peers at 17.5.
Sales are declining, with Q2 revenue down 3% year-over-year. Margin gains partly reflect a $47.6 million tariff refund, which may not repeat. The sector faces headwinds and management progress on growth and cash flow is mixed.
The market prices in about 2% revenue growth and values the stock roughly 15% below our fair value near $24. Our fair value is 28% above the Street median, reflecting optimism on margin recovery and earnings growth.
Breaks if: operating cash flow falls below $120 million next two quarters
Breaks if: EPS falls below $3.3 in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on restoring growth and margins. The current thesis state is intact, as recent financial performance remains strong relative to its industry.
The market appears to have a neutral valuation, with expectations slightly below peers. There is a low expectations gap, indicating that current prices reflect a justified valuation relative to its competitors.
Management is focused on improving organic sales and cash flow, but recent results show mixed progress. The near-term risk of missing earnings is low, but the company operates in a high-miss-rate industry, which could lead to volatility.
Key scenarios include the potential for guidance cuts, which would negatively impact sentiment, or a reacceleration of inflation that could benefit ENR. Additionally, strong performance from sector leaders could provide positive momentum.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company beat revenue expectations recently. However, it missed earnings expectations and provided a cautious outlook. This earnings miss raises concerns about future growth.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Management has raised the earnings outlook for 2026, projecting EPS between $3.30 and $3.60.
Breaks if: gross margin falls below 39% next quarter
Breaks if: revenue declines more than 3% YoY next year
Overall, the multi-year view remains cautious but stable, with a focus on management execution and sector trends. Not investment advice.