Third quarter earnings highlight profit pressure at Energizer Holdings
Energizer Holdings (ENR) reported third quarter 2026 results on August 4, with sales of $734.1 million and net income of $39.9 million, alongside a quarterly dividend declaration of $0.30 per share.
These earnings, combined with the updated income picture for the first nine months of the fiscal year, provide fresh data on how the battery and auto care business is performing across its core segments.
See our latest analysis for Energizer Holdings.
The recent third quarter earnings release and reaffirmed dividend appear to be in focus for Energizer Holdings investors. The stock has a 1 month share price return of 12.4% and a 3 month share price return of 19.7%. However, the 1 year total shareholder return declined 16.8%, which points to improving short term momentum against a weaker longer term record.
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Energizer Holdings combines established brands and global reach with clear pressure on recent earnings, while the share price has climbed sharply in recent months. The next step is to see how that balance is reflected in the valuation.
Preferred P/E multiple for Energizer Holdings: Is it justified?
Energizer Holdings currently trades on a P/E of 19x, while the stock closed at $22.57 on the last trading day. That multiple sits in the middle of a mixed valuation picture that includes both peer and fair value comparisons.
The P/E ratio compares the share price with earnings per share. For a consumer products company like Energizer Holdings, it provides a quick read on how the market is pricing its current profit base relative to other earnings-focused stocks.
According to Simply Wall St data, Energizer Holdings is considered good value against a peer average P/E of 23.5x, yet expensive compared to the wider Global Household Products industry average of 16.4x. It is also described as expensive versus an estimated fair P/E of 16.7x, which is a level the market could potentially move toward if sentiment or earnings expectations change.
Explore the SWS fair ratio for Energizer Holdings
Alongside the P/E view, the SWS DCF model currently estimates that Energizer Holdings, at a last close of $22.57, is trading at a large discount to an assessed future cash flow value of $90.79. The model projects the company’s future cash flows and discounts them back to today using an assumed required rate of return, which can produce a different picture to earnings-based multiples.
This kind of result often reflects a gap between market pricing and modelled long-term cash generation for a business with established brands, uneven recent profit margins and forecast earnings growth that sits below very high growth thresholds.
Look into how the SWS DCF model arrives at its fair value.
Result: Price-to-earnings of 19x (ABOUT RIGHT)
However, Energizer Holdings still faces risk if auto care demand softens or if pressure on profit margins persists and undermines confidence in the current P/E ratio.
Find out about the key risks to this Energizer Holdings narrative.
Another view on Energizer Holdings using analyst targets
The P/E and SWS DCF work point in different directions for Energizer Holdings. Analyst targets sit at $22.33, which is slightly below the recent $22.57 share price. That implies limited upside based on analyst expectations, even though the SWS DCF model suggests a large discount. How much weight do you give to analyst targets versus modelled cash flows?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Energizer Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Unsure how to balance the mixed messages around Energizer Holdings’ valuation, earnings pressure and recent share price moves? Act while the data is fresh and weigh both the potential upsides and the issues the market is watching by reviewing the 2 key rewards and 4 important warning signs.
Looking for more Energizer Holdings sized investment ideas?
If Energizer Holdings has sharpened your focus on valuation and business quality, do not stop here. The next strong opportunity could be sitting just outside your current watchlist.
- Target steady potential income streams by reviewing companies in the 8 dividend fortresses that may suit a portfolio built around regular cash returns.
- Search for quality at a measured price by scanning the 51 high quality undervalued stocks and compare how their fundamentals stack up against Energizer Holdings.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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