ACME UNITED CORP (ACU) Stock Fundamental Analysis
NYSEARCA:ACU - NYSE Arca - US0048161048 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ACU. ACU was compared to 84 industry peers in the Commercial Services & Supplies industry. ACU scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
ACU had a positive operating cash flow in the past year.
Each year in the past 5 years ACU has been profitable.
Each year in the past 5 years ACU had a positive operating cash flow.
1.2 Ratios
ACU has a better Return On Assets (11.80%) than 87.80% of its industry peers.
With an excellent Return On Equity value of 18.36%, ACU belongs to the best of the industry, outperforming 84.15% of the companies in the same industry.
ACU has a better Return On Invested Capital (7.86%) than 65.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACU is below the industry average of 10.12%.
The last Return On Invested Capital (7.86%) for ACU is above the 3 year average (6.82%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
With an excellent Profit Margin value of 10.25%, ACU belongs to the best of the industry, outperforming 84.15% of the companies in the same industry.
ACU's Profit Margin has improved in the last couple of years.
ACU's Operating Margin of 7.32% is in line compared to the rest of the industry. ACU outperforms 56.10% 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 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
ACU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ACU has been increased compared to 1 year ago.
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.
2.2 Solvency
An Altman-Z score of 4.20 indicates that ACU is not in any danger for bankruptcy at the moment.
ACU has a Altman-Z score of 4.20. This is in the better half of the industry: ACU outperforms 79.27% of its industry peers.
ACU has a debt to FCF ratio of 5.24. This is a neutral value as ACU would need 5.24 years to pay back of 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.
ACU has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
ACU's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. ACU outperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.24 | ||
| Altman-Z | 4.2 |
ROIC/WACC0.94
WACC8.35%
2.3 Liquidity
A Current Ratio of 4.41 indicates that ACU has no problem at all paying 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.
A Quick Ratio of 1.91 indicates that ACU should not have too much problems paying its short term obligations.
ACU has a Quick ratio of 1.91. This is amongst the best in the industry. ACU outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.41 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.67% over the past year.
Measured over the past years, ACU shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.64% on average per year.
Looking at the last year, ACU shows a decrease in Revenue. The Revenue has decreased by -1.64% in the last year.
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
Based on estimates for the next years, ACU will show a decrease in Earnings Per Share. The EPS will decrease by -8.03% on average per year.
Based on estimates for the next years, ACU will show a small growth in Revenue. The Revenue will grow by 2.24% on average per year.
EPS Next Y14.19%
EPS Next 2Y0.39%
EPS Next 3Y-8.03%
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.
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
ACU is valuated correctly with a Price/Earnings ratio of 15.31.
Compared to the rest of the industry, the Price/Earnings ratio of ACU indicates a somewhat cheap valuation: ACU is cheaper than 76.83% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. ACU is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.57, the valuation of ACU can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACU indicates a somewhat cheap valuation: ACU is cheaper than 71.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, ACU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 16.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACU is valued a bit cheaper than the industry average as 74.39% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ACU is valued a bit cheaper than 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.41 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
ACU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 -8.03% in the coming years.
PEG (NY)1.08
PEG (5Y)1.32
EPS Next 2Y0.39%
EPS Next 3Y-8.03%
5. Dividend
5.1 Amount
ACU has a Yearly Dividend Yield of 1.60%.
ACU's Dividend Yield is rather good when compared to the industry average which is at 2.12. 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of ACU has a limited annual growth rate of 4.67%.
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)4.67%
Div Incr Years4
Div Non Decr Years11
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 2Y0.39%
EPS Next 3Y-8.03%
NYSEARCA:ACU (2/21/2025, 8:04:00 PM)
37.06
-0.48 (-1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.64%
Inst Owner Change11.85%
Ins Owners11.49%
Ins Owner Change-2.33%
Market Cap138.60M
Analysts83.33
Price Target54.32 (46.57%)
Short Float %1.42%
Short Ratio5.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
Yearly Dividend0.55
Dividend Growth(5Y)4.67%
DP11.07%
Div Incr Years4
Div Non Decr Years11
Ex-Date
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)-8.49%
EPS NQ rev (3m)-6.73%
EPS NY rev (1m)20.1%
EPS NY rev (3m)20.1%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-5.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 16.57 | ||
| P/S | 0.73 | ||
| P/FCF | 22.41 | ||
| P/OCF | 10.79 | ||
| P/B | 1.3 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)2.42
EY6.53%
EPS(NY)2.24
Fwd EY6.04%
FCF(TTM)1.65
FCFY4.46%
OCF(TTM)3.43
OCFY9.26%
SpS50.93
BVpS28.43
TBVpS20.14
PEG (NY)1.08
PEG (5Y)1.32
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.35%
ROIC/WACC0.94
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 Y14.19%
EPS Next 2Y0.39%
EPS Next 3Y-8.03%
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%