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Beyond any doubt, one of the most iconic consumer brands in the world today has got to be Energizer Holdings (NYSE:ENR). Although the firm is not that large, with a market capitalization of only $2.29 billion, it is well known as a giant in the battery production space, particularly when it comes to disposable batteries. In addition to selling batteries, the firm also produces and sells certain auto care products such as protectants, wipes, glass cleaners, leather care products, air fresheners, and more. None of this is viewed as a real growth market these days. Rather, the spaces in which the company operates are largely mature. Because of this, shares often trade at relatively low multiples. But given the amount of cash flow the business generates and management’s continued efforts to reduce leverage, I think the stock is too low.
This is not my first time saying this. The last
