PZ Cussons share price down 75% in last decade – why it's one to watch

Once-strong consumer-goods business PZ Cussons is out of favour with the market. That spells opportunity for investors, says Jamie Ward

Production At PZ Cussons Factory
(Image credit: Paul Thomas/Bloomberg via Getty Images)

Sometimes, the market gives up on a company. Investors become so disillusioned that they assume past difficulties will persist indefinitely. This appears to be the fate of PZ Cussons (LSE: PZC), a once-strong consumer-goods business that has faced multiple headwinds in recent years. Its share price is down by more than 75% in the last ten years and it has a valuation that suggests the market sees its struggles as the new normal. But is this truly the case, or does the stock now present an attractive contrarian opportunity?

PZ Cussons owns a range of personal-care, beauty and home-care brands. Its portfolio includes brands such as Carex, Imperial Leather and St. Tropez. These are repeat-buy, fast-moving consumer goods and are usually considered by investors to be dependable. Yet, despite the apparently defensive business, the company has suffered from a combination of external pressures and internal missteps that have weighed heavily on its performance.

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Jamie is an analyst and former fund manager. He writes about companies for MoneyWeek and consults on investments to professional investors.