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ACME UNITED CORP (ACU) Stock Fundamental Analysis

NYSEARCA:ACU - American Stock Exchange - US0048161048 - Common Stock

37.06  -0.44 (-1.17%)

Fundamental Rating

6

ACU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. ACU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ACU has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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8

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.
In the past 5 years ACU has always been profitable.
In the past 5 years ACU always reported a positive cash flow from operatings.
ACU Yearly Net Income VS EBIT VS OCF VS FCFACU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M 20M

1.2 Ratios

The Return On Assets of ACU (11.80%) is better than 87.80% of its industry peers.
ACU's Return On Equity of 18.36% is amongst the best of the industry. ACU outperforms 84.15% of its industry peers.
ACU's Return On Invested Capital of 7.86% is fine compared to the rest of the industry. ACU outperforms 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACU is below the industry average of 10.08%.
The 3 year average ROIC (6.82%) for ACU is below the current ROIC(7.86%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 11.8%
ROE 18.36%
ROIC 7.86%
ROA(3y)7.74%
ROA(5y)6.89%
ROE(3y)13.24%
ROE(5y)12.51%
ROIC(3y)6.82%
ROIC(5y)7.21%
ACU Yearly ROA, ROE, ROICACU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

ACU's Profit Margin of 10.25% is amongst the best of the industry. ACU outperforms 82.93% of its industry peers.
ACU's Profit Margin has improved in the last couple of years.
ACU has a Operating Margin (7.32%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ACU has grown nicely.
The Gross Margin of ACU (39.37%) is better than 65.85% 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 RankSector Rank
OM 7.32%
PM (TTM) 10.25%
GM 39.37%
OM growth 3Y-0.35%
OM growth 5Y4.87%
PM growth 3Y23.45%
PM growth 5Y22.64%
GM growth 3Y1.24%
GM growth 5Y0.44%
ACU Yearly Profit, Operating, Gross MarginsACU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACU is destroying value.
Compared to 1 year ago, ACU has more shares outstanding
ACU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ACU has been reduced compared to a year ago.
ACU Yearly Shares OutstandingACU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 1M 2M 3M
ACU Yearly Total Debt VS Total AssetsACU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M

2.2 Solvency

An Altman-Z score of 4.20 indicates that ACU is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.20, ACU is doing good in the industry, outperforming 75.61% of the companies in the same industry.
The Debt to FCF ratio of ACU is 5.24, which is a neutral value as it means it would take ACU, 5.24 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.24, ACU is doing good in the industry, outperforming 68.29% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that ACU is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.30, ACU is doing good in the industry, outperforming 64.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 5.24
Altman-Z 4.2
ROIC/WACC0.86
WACC9.13%
ACU Yearly LT Debt VS Equity VS FCFACU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M 80M

2.3 Liquidity

ACU has a Current Ratio of 4.41. This indicates that ACU is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.41, ACU belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
ACU has a Quick Ratio of 1.91. This is a normal value and indicates that ACU is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ACU (1.91) is better than 80.49% of its industry peers.
Industry RankSector Rank
Current Ratio 4.41
Quick Ratio 1.91
ACU Yearly Current Assets VS Current LiabilitesACU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 46.67% over the past year.
ACU shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.64% yearly.
ACU shows a decrease in Revenue. In the last year, the revenue decreased by -1.64%.
The Revenue has been growing slightly by 6.88% on average over the past years.
EPS 1Y (TTM)46.67%
EPS 3Y-0.89%
EPS 5Y11.64%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y5.3%
Revenue growth 5Y6.88%
Sales Q2Q%-4.4%

3.2 Future

The Earnings Per Share is expected to decrease by -7.14% on average over the next years.
The Revenue is expected to grow by 2.24% on average over the next years.
EPS Next Y-4.91%
EPS Next 2Y-13.36%
EPS Next 3Y-7.14%
EPS Next 5YN/A
Revenue Next Year-2.61%
Revenue Next 2Y1.06%
Revenue Next 3Y2.24%
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.
ACU Yearly Revenue VS EstimatesACU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M
ACU Yearly EPS VS EstimatesACU Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.31, ACU is valued correctly.
ACU's Price/Earnings ratio is a bit cheaper when compared to the industry. ACU is cheaper than 79.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACU to the average of the S&P500 Index (28.29), we can say ACU is valued slightly cheaper.
ACU is valuated rather expensively with a Price/Forward Earnings ratio of 22.24.
Based on the Price/Forward Earnings ratio, ACU is valued a bit cheaper than 68.29% of the companies in the same industry.
ACU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.31
Fwd PE 22.24
ACU Price Earnings VS Forward Price EarningsACU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACU indicates a somewhat cheap valuation: ACU is cheaper than 71.95% of the companies listed in the same industry.
ACU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACU is cheaper than 63.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 22.41
EV/EBITDA 8.45
ACU Per share dataACU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The excellent profitability rating of ACU may justify a higher PE ratio.
A cheap valuation may be justified as ACU's earnings are expected to decrease with -7.14% in the coming years.
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y-13.36%
EPS Next 3Y-7.14%

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6

5. Dividend

5.1 Amount

ACU has a Yearly Dividend Yield of 1.64%.
Compared to an average industry Dividend Yield of 2.09, ACU pays a better dividend. On top of this ACU pays more dividend than 82.93% of the companies listed in the same industry.
ACU's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 1.64%

5.2 History

The dividend of ACU has a limited annual growth rate of 4.67%.
ACU has paid a dividend for at least 10 years, which is 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)4.67%
Div Incr Years4
Div Non Decr Years11
ACU Yearly Dividends per shareACU Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

11.07% of the earnings are spent on dividend by ACU. This is a low number and sustainable payout ratio.
DP11.07%
EPS Next 2Y-13.36%
EPS Next 3Y-7.14%
ACU Yearly Income VS Free CF VS DividendACU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5M 10M 15M 20M
ACU Dividend Payout.ACU Dividend Payout, showing the Payout Ratio.ACU Dividend Payout.PayoutRetained Earnings

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ACME UNITED CORP

NYSEARCA:ACU (1/22/2025, 11:41:47 AM)

37.06

-0.44 (-1.17%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-18 2024-10-18/bmo
Earnings (Next)N/A N/A
Inst Owners80.64%
Inst Owner Change-0.1%
Ins Owners11.49%
Ins Owner Change1.76%
Market Cap138.60M
Analysts83.33
Price Target54.32 (46.57%)
Short Float %1.48%
Short Ratio3.93
Dividend
Industry RankSector Rank
Dividend Yield 1.64%
Yearly Dividend0.55
Dividend Growth(5Y)4.67%
DP11.07%
Div Incr Years4
Div Non Decr Years11
Ex-Date01-06 2025-01-06 (0.15)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.47%
Min EPS beat(2)-25.74%
Max EPS beat(2)14.81%
EPS beat(4)2
Avg EPS beat(4)-7.92%
Min EPS beat(4)-27.99%
Max EPS beat(4)14.81%
EPS beat(8)3
Avg EPS beat(8)-29.16%
EPS beat(12)3
Avg EPS beat(12)-34.29%
EPS beat(16)5
Avg EPS beat(16)-21.45%
Revenue beat(2)0
Avg Revenue beat(2)-6.82%
Min Revenue beat(2)-10.71%
Max Revenue beat(2)-2.94%
Revenue beat(4)0
Avg Revenue beat(4)-8.09%
Min Revenue beat(4)-10.71%
Max Revenue beat(4)-2.94%
Revenue beat(8)1
Avg Revenue beat(8)-5.58%
Revenue beat(12)3
Avg Revenue beat(12)-4.08%
Revenue beat(16)5
Avg Revenue beat(16)-2.58%
PT rev (1m)0%
PT rev (3m)-4.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.72%
Revenue NY rev (1m)-4.49%
Revenue NY rev (3m)-4.49%
Valuation
Industry RankSector Rank
PE 15.31
Fwd PE 22.24
P/S 0.73
P/FCF 22.41
P/OCF 10.79
P/B 1.3
P/tB 1.84
EV/EBITDA 8.45
EPS(TTM)2.42
EY6.53%
EPS(NY)1.67
Fwd EY4.5%
FCF(TTM)1.65
FCFY4.46%
OCF(TTM)3.43
OCFY9.26%
SpS50.93
BVpS28.43
TBVpS20.14
PEG (NY)N/A
PEG (5Y)1.32
Profitability
Industry RankSector Rank
ROA 11.8%
ROE 18.36%
ROCE 9.75%
ROIC 7.86%
ROICexc 8.18%
ROICexgc 10.57%
OM 7.32%
PM (TTM) 10.25%
GM 39.37%
FCFM 3.25%
ROA(3y)7.74%
ROA(5y)6.89%
ROE(3y)13.24%
ROE(5y)12.51%
ROIC(3y)6.82%
ROIC(5y)7.21%
ROICexc(3y)7.1%
ROICexc(5y)7.56%
ROICexgc(3y)8.98%
ROICexgc(5y)9.66%
ROCE(3y)8.47%
ROCE(5y)8.95%
ROICexcg growth 3Y1.26%
ROICexcg growth 5Y6.28%
ROICexc growth 3Y0.97%
ROICexc growth 5Y6.49%
OM growth 3Y-0.35%
OM growth 5Y4.87%
PM growth 3Y23.45%
PM growth 5Y22.64%
GM growth 3Y1.24%
GM growth 5Y0.44%
F-Score6
Asset Turnover1.15
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 5.24
Debt/EBITDA 1.62
Cap/Depr 114.64%
Cap/Sales 3.49%
Interest Coverage 6.87
Cash Conversion 64.99%
Profit Quality 31.69%
Current Ratio 4.41
Quick Ratio 1.91
Altman-Z 4.2
F-Score6
WACC9.13%
ROIC/WACC0.86
Cap/Depr(3y)118.72%
Cap/Depr(5y)94.72%
Cap/Sales(3y)2.82%
Cap/Sales(5y)2.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)46.67%
EPS 3Y-0.89%
EPS 5Y11.64%
EPS Q2Q%-6.9%
EPS Next Y-4.91%
EPS Next 2Y-13.36%
EPS Next 3Y-7.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.64%
Revenue growth 3Y5.3%
Revenue growth 5Y6.88%
Sales Q2Q%-4.4%
Revenue Next Year-2.61%
Revenue Next 2Y1.06%
Revenue Next 3Y2.24%
Revenue Next 5YN/A
EBIT growth 1Y26.04%
EBIT growth 3Y4.94%
EBIT growth 5Y12.08%
EBIT Next Year6.87%
EBIT Next 3Y5.25%
EBIT Next 5YN/A
FCF growth 1Y158.22%
FCF growth 3Y96.53%
FCF growth 5Y80.62%
OCF growth 1Y335.8%
OCF growth 3Y71.58%
OCF growth 5Y45.22%