ACME UNITED CORP (ACU) Stock Fundamental Analysis
USA - NYSEARCA:ACU - US0048161048 - Common Stock
36.55 USD
-0.36 (-0.98%)
36.55 USD
0 (0%)
Overall ACU gets a fundamental rating of 6 out of 10. We evaluated ACU against 82 industry peers in the Commercial Services & Supplies industry. While ACU belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ACU has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ACU had positive earnings in the past year.
In the past year ACU had a positive cash flow from operations.
ACU had positive earnings in each of the past 5 years.
ACU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACU has a Return On Assets of 6.05%. This is in the better half of the industry: ACU outperforms 75.61% of its industry peers.
ACU has a better Return On Equity (9.09%) than 68.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.60%, ACU is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACU is below the industry average of 10.51%.
The last Return On Invested Capital (7.60%) for ACU is above the 3 year average (6.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 9.09% | ||
| ROIC | 7.6% |
ROA(3y)6.65%
ROA(5y)7.13%
ROE(3y)10.46%
ROE(5y)12.4%
ROIC(3y)6.73%
ROIC(5y)7.34%
1.3 Margins
Looking at the Profit Margin, with a value of 5.33%, ACU is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
ACU's Profit Margin has improved in the last couple of years.
The Operating Margin of ACU (7.23%) is better than 62.20% of its industry peers.
In the last couple of years the Operating Margin of ACU has grown nicely.
The Gross Margin of ACU (39.37%) is better than 67.07% of its industry peers.
In the last couple of years the Gross Margin of ACU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.23% | ||
| PM (TTM) | 5.33% | ||
| GM | 39.37% |
OM growth 3Y1.21%
OM growth 5Y4.2%
PM growth 3Y-11.76%
PM growth 5Y5.89%
GM growth 3Y3.33%
GM growth 5Y1.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACU is destroying value.
ACU has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ACU has more shares outstanding
ACU has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.23 indicates that ACU is not in any danger for bankruptcy at the moment.
ACU's Altman-Z score of 4.23 is fine compared to the rest of the industry. ACU outperforms 78.05% of its industry peers.
ACU has a debt to FCF ratio of 2.16. This is a good value and a sign of high solvency as ACU would need 2.16 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.16, ACU is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that ACU is not too dependend on debt financing.
ACU's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. ACU outperforms 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 4.23 |
ROIC/WACC0.91
WACC8.32%
2.3 Liquidity
A Current Ratio of 4.32 indicates that ACU has no problem at all paying its short term obligations.
The Current ratio of ACU (4.32) is better than 89.02% of its industry peers.
ACU has a Quick Ratio of 1.88. This is a normal value and indicates that ACU is financially healthy and should not expect problems in meeting its short term obligations.
ACU's Quick ratio of 1.88 is fine compared to the rest of the industry. ACU outperforms 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.32 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
ACU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.83%.
The Earnings Per Share has been growing by 8.85% on average over the past years. This is quite good.
ACU shows a small growth in Revenue. In the last year, the Revenue has grown by 2.35%.
The Revenue has been growing slightly by 6.42% on average over the past years.
EPS 1Y (TTM)0.83%
EPS 3Y-1.73%
EPS 5Y8.85%
EPS Q2Q%-14.81%
Revenue 1Y (TTM)2.35%
Revenue growth 3Y2.22%
Revenue growth 5Y6.42%
Sales Q2Q%1.86%
3.2 Future
The Earnings Per Share is expected to decrease by -7.57% on average over the next years.
ACU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.13% yearly.
EPS Next Y5.99%
EPS Next 2Y-4.48%
EPS Next 3Y-7.57%
EPS Next 5YN/A
Revenue Next Year3.82%
Revenue Next 2Y3.99%
Revenue Next 3Y4.13%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.98 indicates a correct valuation of ACU.
Based on the Price/Earnings ratio, ACU is valued a bit cheaper than 76.83% of the companies in the same industry.
ACU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 16.49, the valuation of ACU can be described as correct.
73.17% of the companies in the same industry are more expensive than ACU, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, ACU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACU is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
ACU's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ACU is cheaper than 81.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACU does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of ACU may justify a higher PE ratio.
ACU's earnings are expected to decrease with -7.57% in the coming years. This may justify a cheaper valuation.
PEG (NY)2.5
PEG (5Y)1.69
EPS Next 2Y-4.48%
EPS Next 3Y-7.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.71%, ACU has a reasonable but not impressive dividend return.
ACU's Dividend Yield is rather good when compared to the industry average which is at 2.54. ACU pays more dividend than 82.93% of the companies in the same industry.
ACU's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
The dividend of ACU has a limited annual growth rate of 4.57%.
ACU has been paying a dividend for at least 10 years, so it has a reliable track record.
ACU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.57%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
ACU pays out 22.13% of its income as dividend. This is a sustainable payout ratio.
DP22.13%
EPS Next 2Y-4.48%
EPS Next 3Y-7.57%
36.55
-0.36 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners85.19%
Inst Owner Change-0.8%
Ins Owners10.03%
Ins Owner Change-2.17%
Market Cap138.89M
Revenue(TTM)194.96M
Net Income(TTM)10.34M
Analysts83.33
Price Target51.51 (40.93%)
Short Float %1.38%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Yearly Dividend0.6
Dividend Growth(5Y)4.57%
DP22.13%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.15%
Min EPS beat(2)-31.2%
Max EPS beat(2)20.9%
EPS beat(4)1
Avg EPS beat(4)-13.09%
Min EPS beat(4)-31.2%
Max EPS beat(4)20.9%
EPS beat(8)3
Avg EPS beat(8)-9.53%
EPS beat(12)4
Avg EPS beat(12)-29.69%
EPS beat(16)4
Avg EPS beat(16)-28.2%
Revenue beat(2)0
Avg Revenue beat(2)-5.57%
Min Revenue beat(2)-7.99%
Max Revenue beat(2)-3.14%
Revenue beat(4)1
Avg Revenue beat(4)-3.52%
Min Revenue beat(4)-10.71%
Max Revenue beat(4)7.74%
Revenue beat(8)1
Avg Revenue beat(8)-4.8%
Revenue beat(12)2
Avg Revenue beat(12)-4.33%
Revenue beat(16)4
Avg Revenue beat(16)-3.29%
PT rev (1m)0%
PT rev (3m)3.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 16.49 | ||
| P/S | 0.72 | ||
| P/FCF | 11.36 | ||
| P/OCF | 7.61 | ||
| P/B | 1.22 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 8.02 |
EPS(TTM)2.44
EY6.68%
EPS(NY)2.22
Fwd EY6.07%
FCF(TTM)3.22
FCFY8.8%
OCF(TTM)4.8
OCFY13.13%
SpS51.07
BVpS29.93
TBVpS22.29
PEG (NY)2.5
PEG (5Y)1.69
Graham Number40.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 9.09% | ||
| ROCE | 9.51% | ||
| ROIC | 7.6% | ||
| ROICexc | 7.79% | ||
| ROICexgc | 9.77% | ||
| OM | 7.23% | ||
| PM (TTM) | 5.33% | ||
| GM | 39.37% | ||
| FCFM | 6.3% |
ROA(3y)6.65%
ROA(5y)7.13%
ROE(3y)10.46%
ROE(5y)12.4%
ROIC(3y)6.73%
ROIC(5y)7.34%
ROICexc(3y)7.03%
ROICexc(5y)7.65%
ROICexgc(3y)9.08%
ROICexgc(5y)9.77%
ROCE(3y)8.42%
ROCE(5y)9.19%
ROICexgc growth 3Y1.62%
ROICexgc growth 5Y1.78%
ROICexc growth 3Y-0.2%
ROICexc growth 5Y1.97%
OM growth 3Y1.21%
OM growth 5Y4.2%
PM growth 3Y-11.76%
PM growth 5Y5.89%
GM growth 3Y3.33%
GM growth 5Y1.47%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.16 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 97.89% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 7.85 | ||
| Cash Conversion | 90.43% | ||
| Profit Quality | 118.23% | ||
| Current Ratio | 4.32 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 4.23 |
F-Score6
WACC8.32%
ROIC/WACC0.91
Cap/Depr(3y)105.52%
Cap/Depr(5y)108.49%
Cap/Sales(3y)2.88%
Cap/Sales(5y)2.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.83%
EPS 3Y-1.73%
EPS 5Y8.85%
EPS Q2Q%-14.81%
EPS Next Y5.99%
EPS Next 2Y-4.48%
EPS Next 3Y-7.57%
EPS Next 5YN/A
Revenue 1Y (TTM)2.35%
Revenue growth 3Y2.22%
Revenue growth 5Y6.42%
Sales Q2Q%1.86%
Revenue Next Year3.82%
Revenue Next 2Y3.99%
Revenue Next 3Y4.13%
Revenue Next 5YN/A
EBIT growth 1Y-4.49%
EBIT growth 3Y3.46%
EBIT growth 5Y10.9%
EBIT Next Year32.97%
EBIT Next 3Y5.51%
EBIT Next 5YN/A
FCF growth 1Y-15.66%
FCF growth 3YN/A
FCF growth 5Y-18%
OCF growth 1Y-1.95%
OCF growth 3Y32.56%
OCF growth 5Y-4.02%
ACME UNITED CORP / ACU FAQ
What is the fundamental rating for ACU stock?
ChartMill assigns a fundamental rating of 6 / 10 to ACU.
What is the valuation status of ACME UNITED CORP (ACU) stock?
ChartMill assigns a valuation rating of 6 / 10 to ACME UNITED CORP (ACU). This can be considered as Fairly Valued.
What is the profitability of ACU stock?
ACME UNITED CORP (ACU) has a profitability rating of 7 / 10.
Can you provide the financial health for ACU stock?
The financial health rating of ACME UNITED CORP (ACU) is 6 / 10.
What is the earnings growth outlook for ACME UNITED CORP?
The Earnings per Share (EPS) of ACME UNITED CORP (ACU) is expected to grow by 5.99% in the next year.