Keith Weissman presented his in-depth investment thesis on Edgewell Personal Care (NYSE: EPC) at Best Ideas 2016.
Edgewell Personal Care separated from Energizer Holdings (NYSE: ENR) on July 1 to become more focused on the personal care space. This separation has created an opportunity for acquisition-related growth and margin improvement through efficiency gains. Acquisitions by EPC in personal care and adjacent products would likely lead to margin expansion as the new brands are absorbed into the existing sales channel. The company sports industry leading brands in product categories that are fairly resilient mitigating downside risk to earnings and the stock price. Further limiting downside in the stock price is the likelihood of an acquisition of EPC by a larger consumer products company. Scale matters in this business, especially when your customers are the likes of Wal-Mart, Target, Walgreens, etc. This puts a premium on growing which is best achieved through acquisitions given limited organic growth opportunities in the space. Taking into account all of these factor, there is a good chance for the company to grow the business beyond current expectations with solid downside protection naturally in place.
About the instructor:
Keith Weissman is a Senior Analyst and Director of Research at Sibilla Capital. He has more than 15 years of experience in equity research and principle investment. His approach to fundamental analysis has been developed over his career having looked at investment opportunities across a variety of sectors from both the perspective of a market-oriented and private equity investor. Prior to joining Sibilla, Mr. Weissman served as a research analyst at CLSA Asia-Pacific Markets covering companies in the aerospace sector. During his time at CLSA, he developed a comprehensive framework for analyzing investment opportunities which serves as the basis for fundamental research performed at Sibilla. Before transitioning to CLSA, he closed over $1 billion in principle investments. In doing so, Mr. Weissman developed deep due diligence and valuation skills that formed the foundation of his approach to investment research. Mr. Weissman holds a Master’s in Business Administration from Columbia Business School and a Bachelor of Science degree in Economics from the Wharton School of the University of Pennsylvania. In addition, he is a CFA charter holder, a CPA license holder and is an adjunct professor in the Gabelli School of Business at Fordham University, the Zicklin School of Business at Baruch College, and the Lubin School of Business at Pace University. He has lectured on topics such as corporate valuation, investment analysis, portfolio management, banking and central bank policy, the securities industry, and risk management.
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