ACME UNITED CORP (ACU) Stock Fundamental Analysis
USA - NYSEARCA:ACU - US0048161048 - Common Stock
43.49 USD
+0.63 (+1.47%)
43.49 USD
0 (0%)
Overall ACU gets a fundamental rating of 6 out of 10. We evaluated ACU against 84 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ACU had positive earnings in the past year.
ACU had a positive operating cash flow in the past year.
In the past 5 years ACU has always been profitable.
ACU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACU's Return On Assets of 6.05% is fine compared to the rest of the industry. ACU outperforms 75.00% of its industry peers.
With a decent Return On Equity value of 9.09%, ACU is doing good in the industry, outperforming 67.86% of the companies in the same industry.
ACU has a Return On Invested Capital of 7.60%. This is in the better half of the industry: ACU outperforms 67.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACU is below the industry average of 10.60%.
The 3 year average ROIC (6.73%) for ACU is below the current ROIC(7.60%), indicating increased profibility in the last year.
| 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
ACU has a Profit Margin of 5.33%. This is in the better half of the industry: ACU outperforms 67.86% of its industry peers.
ACU's Profit Margin has improved in the last couple of years.
ACU has a Operating Margin of 7.23%. This is comparable to the rest of the industry: ACU outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of ACU has grown nicely.
ACU has a better Gross Margin (39.37%) than 66.67% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for ACU is higher compared to a year ago.
2.2 Solvency
ACU has an Altman-Z score of 4.48. This indicates that ACU is financially healthy and has little risk of bankruptcy at the moment.
ACU has a Altman-Z score of 4.48. This is in the better half of the industry: ACU outperforms 73.81% of its industry peers.
The Debt to FCF ratio of ACU is 2.16, which is a good value as it means it would take ACU, 2.16 years of fcf income to pay off all of its debts.
ACU's Debt to FCF ratio of 2.16 is fine compared to the rest of the industry. ACU outperforms 78.57% of its industry peers.
ACU has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.23, ACU is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.16 | ||
| Altman-Z | 4.48 |
ROIC/WACC0.9
WACC8.49%
2.3 Liquidity
ACU has a Current Ratio of 4.32. This indicates that ACU is financially healthy and has no problem in meeting its short term obligations.
ACU's Current ratio of 4.32 is amongst the best of the industry. ACU outperforms 89.29% of its industry peers.
A Quick Ratio of 1.88 indicates that ACU should not have too much problems paying its short term obligations.
The Quick ratio of ACU (1.88) is better than 77.38% 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 2.44%.
Measured over the past years, ACU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.85% on average per year.
The Revenue has been growing slightly by 0.70% in the past year.
ACU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.42% yearly.
EPS 1Y (TTM)2.44%
EPS 3Y-1.73%
EPS 5Y8.85%
EPS Q2Q%6.42%
Revenue 1Y (TTM)0.7%
Revenue growth 3Y2.22%
Revenue growth 5Y6.42%
Sales Q2Q%-2.58%
3.2 Future
The Earnings Per Share is expected to decrease by -8.55% 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 Y7.86%
EPS Next 2Y-16.19%
EPS Next 3Y-8.55%
EPS Next 5YN/A
Revenue Next Year3.82%
Revenue Next 2Y3.99%
Revenue Next 3Y4.13%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.26, ACU is valued on the expensive side.
75.00% of the companies in the same industry are more expensive than ACU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.38, ACU is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 25.48, the valuation of ACU can be described as expensive.
60.71% of the companies in the same industry are more expensive than ACU, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ACU to the average of the S&P500 Index (22.86), we can say ACU is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 25.48 |
4.2 Price Multiples
72.62% of the companies in the same industry are more expensive than ACU, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACU indicates a rather cheap valuation: ACU is cheaper than 82.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.52 | ||
| EV/EBITDA | 9.2 |
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.
ACU has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ACU's earnings are expected to decrease with -8.55% in the coming years.
PEG (NY)2.2
PEG (5Y)1.95
EPS Next 2Y-16.19%
EPS Next 3Y-8.55%
5. Dividend
5.1 Amount
ACU has a Yearly Dividend Yield of 1.46%.
ACU's Dividend Yield is rather good when compared to the industry average which is at 2.27. ACU pays more dividend than 82.14% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, ACU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.57%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
22.13% of the earnings are spent on dividend by ACU. This is a low number and sustainable payout ratio.
DP22.13%
EPS Next 2Y-16.19%
EPS Next 3Y-8.55%
43.49
+0.63 (+1.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.94%
Inst Owner Change8.27%
Ins Owners10.06%
Ins Owner Change0.05%
Market Cap165.26M
Analysts83.33
Price Target51.51 (18.44%)
Short Float %1.97%
Short Ratio6.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)3.59%
PT rev (3m)-4.27%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)-6.99%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.43%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 25.48 | ||
| P/S | 0.85 | ||
| P/FCF | 13.52 | ||
| P/OCF | 9.06 | ||
| P/B | 1.45 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)2.52
EY5.79%
EPS(NY)1.71
Fwd EY3.92%
FCF(TTM)3.22
FCFY7.4%
OCF(TTM)4.8
OCFY11.04%
SpS51.07
BVpS29.93
TBVpS22.29
PEG (NY)2.2
PEG (5Y)1.95
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%
ROICexcg growth 3Y1.62%
ROICexcg 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 | 4.48 |
F-Score6
WACC8.49%
ROIC/WACC0.9
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)2.44%
EPS 3Y-1.73%
EPS 5Y8.85%
EPS Q2Q%6.42%
EPS Next Y7.86%
EPS Next 2Y-16.19%
EPS Next 3Y-8.55%
EPS Next 5YN/A
Revenue 1Y (TTM)0.7%
Revenue growth 3Y2.22%
Revenue growth 5Y6.42%
Sales Q2Q%-2.58%
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 Year10.18%
EBIT Next 3Y6.19%
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%