ACME UNITED CORP (ACU) Stock Fundamental Analysis
NYSEARCA:ACU - NYSE Arca - US0048161048 - Common Stock - Currency: USD
ACU gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 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 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.
Each year in the past 5 years ACU had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.16%, ACU is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.27%, ACU is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
The Return On Invested Capital of ACU (7.83%) is better than 62.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACU is below the industry average of 11.67%.
The last Return On Invested Capital (7.83%) for ACU is above the 3 year average (6.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 9.27% | ||
| ROIC | 7.83% |
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 5.13%. This is in the better half of the industry: ACU outperforms 66.27% of its industry peers.
ACU's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.17%, ACU perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
ACU's Operating Margin has improved in the last couple of years.
ACU has a better Gross Margin (39.32%) than 66.27% of its industry peers.
ACU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.17% | ||
| PM (TTM) | 5.13% | ||
| GM | 39.32% |
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.
The number of shares outstanding for ACU has been increased compared to 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
ACU has an Altman-Z score of 4.65. This indicates that ACU is financially healthy and has little risk of bankruptcy at the moment.
ACU's Altman-Z score of 4.65 is fine compared to the rest of the industry. ACU outperforms 79.52% of its industry peers.
The Debt to FCF ratio of ACU is 2.57, which is a good value as it means it would take ACU, 2.57 years of fcf income to pay off all of its debts.
ACU's Debt to FCF ratio of 2.57 is fine compared to the rest of the industry. ACU outperforms 75.90% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that ACU is not too dependend on debt financing.
ACU's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. ACU outperforms 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.65 |
ROIC/WACC0.91
WACC8.63%
2.3 Liquidity
A Current Ratio of 4.83 indicates that ACU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.83, ACU belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
A Quick Ratio of 1.97 indicates that ACU should not have too much problems paying its short term obligations.
ACU has a better Quick ratio (1.97) than 78.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.83 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.15% 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 8.85% on average per year.
The Revenue has been growing slightly by 2.56% 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)5.15%
EPS 3Y-1.73%
EPS 5Y8.85%
EPS Q2Q%5.13%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y2.22%
Revenue growth 5Y6.42%
Sales Q2Q%2.23%
3.2 Future
ACU is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.88% yearly.
Based on estimates for the next years, ACU will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y15.96%
EPS Next 2Y-15.69%
EPS Next 3Y-8.88%
EPS Next 5YN/A
Revenue Next Year5.86%
Revenue Next 2Y4.75%
Revenue Next 3Y4.81%
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 rather expensively with a Price/Earnings ratio of 17.57.
Based on the Price/Earnings ratio, ACU is valued a bit cheaper than the industry average as 69.88% of the companies are valued more expensively.
ACU is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.92 indicates a rather expensive valuation of ACU.
Based on the Price/Forward Earnings ratio, ACU is valued a bit cheaper than the industry average as 60.24% of the companies are valued more expensively.
ACU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.57 | ||
| Fwd PE | 24.92 |
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 69.88% of the companies listed in the same industry.
77.11% of the companies in the same industry are more expensive than ACU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.69 | ||
| EV/EBITDA | 9.45 |
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 decent 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 -8.88% in the coming years.
PEG (NY)1.1
PEG (5Y)1.98
EPS Next 2Y-15.69%
EPS Next 3Y-8.88%
5. Dividend
5.1 Amount
ACU has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
ACU's Dividend Yield is a higher than the industry average which is at 2.45.
ACU's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| 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 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)4.57%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
ACU pays out 22.15% of its income as dividend. This is a sustainable payout ratio.
DP22.15%
EPS Next 2Y-15.69%
EPS Next 3Y-8.88%
NYSEARCA:ACU (7/14/2025, 3:26:32 PM)
43.04
+0.04 (+0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.94%
Inst Owner Change0%
Ins Owners10.06%
Ins Owner Change0.05%
Market Cap163.12M
Analysts83.33
Price Target53.81 (25.02%)
Short Float %0.35%
Short Ratio0.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend0.6
Dividend Growth(5Y)4.57%
DP22.15%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.75%
Min EPS beat(2)-31.2%
Max EPS beat(2)-16.3%
EPS beat(4)1
Avg EPS beat(4)-14.61%
Min EPS beat(4)-31.2%
Max EPS beat(4)14.81%
EPS beat(8)3
Avg EPS beat(8)-1.79%
EPS beat(12)3
Avg EPS beat(12)-32.62%
EPS beat(16)4
Avg EPS beat(16)-29.5%
Revenue beat(2)1
Avg Revenue beat(2)2.3%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)7.74%
Revenue beat(4)1
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-10.71%
Max Revenue beat(4)7.74%
Revenue beat(8)1
Avg Revenue beat(8)-5.01%
Revenue beat(12)3
Avg Revenue beat(12)-2.92%
Revenue beat(16)4
Avg Revenue beat(16)-3.32%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.57 | ||
| Fwd PE | 24.92 | ||
| P/S | 0.83 | ||
| P/FCF | 13.69 | ||
| P/OCF | 8.67 | ||
| P/B | 1.51 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 9.45 |
EPS(TTM)2.45
EY5.69%
EPS(NY)1.73
Fwd EY4.01%
FCF(TTM)3.14
FCFY7.3%
OCF(TTM)4.96
OCFY11.53%
SpS51.58
BVpS28.57
TBVpS20.76
PEG (NY)1.1
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 9.27% | ||
| ROCE | 9.8% | ||
| ROIC | 7.83% | ||
| ROICexc | 8.02% | ||
| ROICexgc | 10.18% | ||
| OM | 7.17% | ||
| PM (TTM) | 5.13% | ||
| GM | 39.32% | ||
| FCFM | 6.1% |
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-Score7
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.57 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 112.87% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 7.43 | ||
| Cash Conversion | 93.5% | ||
| Profit Quality | 118.7% | ||
| Current Ratio | 4.83 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 4.65 |
F-Score7
WACC8.63%
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)5.15%
EPS 3Y-1.73%
EPS 5Y8.85%
EPS Q2Q%5.13%
EPS Next Y15.96%
EPS Next 2Y-15.69%
EPS Next 3Y-8.88%
EPS Next 5YN/A
Revenue 1Y (TTM)2.56%
Revenue growth 3Y2.22%
Revenue growth 5Y6.42%
Sales Q2Q%2.23%
Revenue Next Year5.86%
Revenue Next 2Y4.75%
Revenue Next 3Y4.81%
Revenue Next 5YN/A
EBIT growth 1Y3.32%
EBIT growth 3Y3.46%
EBIT growth 5Y10.9%
EBIT Next Year10.18%
EBIT Next 3Y6.19%
EBIT Next 5YN/A
FCF growth 1Y5.83%
FCF growth 3YN/A
FCF growth 5Y-18%
OCF growth 1Y17.2%
OCF growth 3Y32.56%
OCF growth 5Y-4.02%