Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Personal Products industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Personal Products Stock News

Before choosing which top Personal Products stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

The outlook on the personal products sub-industry is neutral. Companies in this sub-industry have benefitted from an economy that is recovering much sooner than expected. Companies have shifted their focus into ecommerce and have begun exploring the international markets for certain products such as the opportunity for skincare products in China. Despite retail stores closing at an increased rate, this has been offset by the growth of ecommerce, which figures to be a key part of most firms’ business plan going forward. For example, Estee Lauders closed retail stores make up about 1-2% revenue, a minor portion of profit from sales. This is even less alarming as the company is likely to earn the revenue back from other locations or online. Despite a recovering economy, travel retail, which was set to grow at about 5% per year pre-pandemic, has stagnated due to ongoing COVID-19 concerns. This key source of revenue will take a few years to get back to its pre-pandemic level and sustainable growth rate.

Why Focus on Undervalued Personal Products Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

Click the button below to learn more about A+ Investor and subscribe today.

3 Undervalued Personal Products Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Personal Products industry for Monday, January 15, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Personal Products industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Edgewell Personal Care Co’s Value Grade

Value Grade:

Edgewell Personal Care Company is a manufacturer and marketer of personal care products. With operations in over 20 countries, its products are available in more than 50 countries. The Company has three segments: Wet Shave, Sun and Skin Care, and Feminine Care categories. Wet Shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Billie, Shave Guard and its custom brands group. It manufactures and distributes Schick and Wilkinson Sword razor systems, composed of razor handles and refillable blades, and disposable shave products for men and women. Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Bulldog, Jack Black, Cremo and Wet Ones brand names. It markets Sun Care products under the Banana Boat and Hawaiian Tropic brands. Feminine Care markets products under the Playtex, Stayfree, Carefree and o.b. brands. It offers tampons under the Playtex Gentle Glide 360, Playtex Sport, Playtex and o.b. brands, including the Playtex Sport.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Edgewell Personal Care Co has a Value Score of 67, which is considered to be undervalued.

When you look at Edgewell Personal Care Co’s price-to-sales ratio at 0.85 compared to the industry median at 2.07, this company has a lower price relative to revenue compared to its peers. This could make Edgewell Personal Care Co’s stock more attractive for value investors.

Edgewell Personal Care Co’s price-earnings ratio is 17.06 compared to the industry median at 27.76. This means it has a lower share price relative to earnings compared to its peers. This could make Edgewell Personal Care Co more attractive for value investors.

Now, let’s assess Edgewell Personal Care Co’s EV/EBITDA ratio, also known as enterprise multiple. At 9.1, when compared to the industry median of 14.0, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Edgewell Personal Care Co’s shareholder yield is higher than its industry median ratio of 1.82%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Edgewell Personal Care Co’s price-to-book ratio is lower than its industry median ratio of 2.81. This could make Edgewell Personal Care Co more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Edgewell Personal Care Co’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Edgewell Personal Care Co’s price-to-free-cash-flow ratio is lower than its industry median ratio of 41.34. This could make Edgewell Personal Care Co more attractive because the lower P/FCF ratio indicates that Edgewell Personal Care Co is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Beauty Health Co’s Value Grade

Value Grade:

The Beauty Health Company is a category-creating company that delivers beauty health experiences. Its flagship brand, HydraFacial, has created the category of hydra dermabrasion by using patented Vortex-Fusion Delivery Systems (Delivery Systems) to cleanse, extract, infuse, and hydrate the skin with solutions and serums. The Company has omnichannel place Delivery Systems where consumers live, work, and play, including medical offices, Medi spas, day spas, hotels, resorts, gyms, wellness centers, and other retail settings. HydraFacial is accessible and appropriate for consumers across all genders, ages, and skin types. It provides Keravive, which is a treatment designed to cleanse, exfoliate, and hydrate the scalp. HydraFacial is available in over 90 countries with an install base of approximately 25,000 Delivery Systems.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Beauty Health Co has a Value Score of 61, which is considered to be undervalued.

Beauty Health Co’s price-to-book ratio is lower than its peers. This could make Beauty Health Co more attractive for value investors when compared to the industry median at 2.81.

You can read more about Beauty Health Co’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Tantech Holdings Ltd’s Value Grade

Value Grade:

Tantech Holdings Ltd is a China-based developer and manufacturer of bamboo-based charcoal products for industrial energy applications and household cooking, heating, purification, agricultural and cleaning uses. The Company operates its business through three segments. The Consumer Products segment manufactures and sells Charcoal Doctor branded products and barbecue (BBQ) charcoal in China. Its consumer products include purification and deodorization products, cleaning products and barbecue charcoals. The Electronic Vehicles segment is engaged in the manufacture of electric vehicles and power batteries. The Trading segment conducts rubber and other trading businesses.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Tantech Holdings Ltd has a Value Score of 100, which is considered to be undervalued.

Tantech Holdings Ltd’s price-earnings ratio is 0.3 compared to the industry median at 27.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Tantech Holdings Ltd more attractive for value investors.

Tantech Holdings Ltd’s price-to-book ratio is higher than its peers. This could make Tantech Holdings Ltd less attractive for value investors when compared to the industry median at 2.81.

You can read more about Tantech Holdings Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Personal Products Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Personal Products stocks as well as other industrys.

Choosing Which of the 3 Best Personal Products Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Edgewell Personal Care Co stock has a Value Grade of B.
• Beauty Health Co stock has a Value Grade of B.
• Tantech Holdings Ltd stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Personal Products industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Personal Products Stocks

Want to learn more about Personal Products stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Personal Products Stocks for Monday, January 15
• What You Need to Know About Colgate-Palmolive Company's Q3 Earnings
• What You Need to Know About Coty Inc's Q1 Earnings
• What You Need to Know About Edgewell Personal Care Co's Q4 Earnings

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.