ACME UNITED CORP (ACU) Stock Fundamental Analysis
NYSEARCA:ACU - NYSE Arca - US0048161048 - Common Stock - Currency: USD
Overall ACU gets a fundamental rating of 5 out of 10. We evaluated ACU 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
In the past year ACU was profitable.
ACU had a positive operating cash flow in the past year.
Each year in the past 5 years ACU has been profitable.
ACU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACU has a Return On Assets of 6.16%. This is in the better half of the industry: ACU outperforms 72.29% of its industry peers.
With a decent Return On Equity value of 9.27%, ACU is doing good in 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 3 year average ROIC (6.73%) for ACU is below the current ROIC(7.83%), indicating increased profibility in the last year.
| 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 better Profit Margin (5.13%) than 66.27% of its industry peers.
In the last couple of years the Profit Margin of ACU has grown nicely.
ACU has a Operating Margin (7.17%) which is in line with its industry peers.
ACU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.32%, ACU is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACU is destroying value.
Compared to 1 year ago, ACU has more shares outstanding
The number of shares outstanding for ACU has been increased compared to 5 years ago.
The debt/assets ratio for ACU is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.61 indicates that ACU is not in any danger for bankruptcy at the moment.
ACU has a better Altman-Z score (4.61) than 77.11% 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.
The Debt to FCF ratio of ACU (2.57) is better than 75.90% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that ACU is not too dependend on debt financing.
ACU has a better Debt to Equity ratio (0.28) than 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 4.61 |
ROIC/WACC0.9
WACC8.66%
2.3 Liquidity
ACU has a Current Ratio of 4.83. This indicates that ACU is financially healthy and has no problem in meeting its short term obligations.
ACU has a Current ratio of 4.83. This is amongst the best in the industry. ACU outperforms 89.16% of its industry peers.
A Quick Ratio of 1.97 indicates that ACU should not have too much problems paying its short term obligations.
The Quick ratio of ACU (1.97) is better than 78.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.83 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
ACU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.15%.
The Earnings Per Share has been growing by 8.85% on average over the past years. This is quite good.
Looking at the last year, ACU shows a small growth in Revenue. The Revenue has grown by 2.56% in the last year.
The Revenue has been growing slightly by 6.42% on average over the past years.
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
The Earnings Per Share is expected to decrease by -8.88% 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 4.81% yearly.
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
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
ACU is valuated correctly with a Price/Earnings ratio of 16.98.
Based on the Price/Earnings ratio, ACU is valued a bit cheaper than 71.08% of the companies in the same industry.
ACU is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.09, ACU is valued on the expensive side.
61.45% of the companies in the same industry are more expensive than ACU, based on the Price/Forward Earnings ratio.
ACU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 24.09 |
4.2 Price Multiples
ACU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACU is cheaper than 69.88% of the companies in the same industry.
79.52% 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 | 13.23 | ||
| EV/EBITDA | 9.27 |
4.3 Compensation for Growth
The 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.
ACU's earnings are expected to decrease with -8.88% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.06
PEG (5Y)1.92
EPS Next 2Y-15.69%
EPS Next 3Y-8.88%
5. Dividend
5.1 Amount
ACU has a Yearly Dividend Yield of 1.46%.
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 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
22.15% of the earnings are spent on dividend by ACU. This is a low number and sustainable payout ratio.
DP22.15%
EPS Next 2Y-15.69%
EPS Next 3Y-8.88%
41.61
-0.39 (-0.93%)
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 Cap157.70M
Analysts83.33
Price Target53.81 (29.32%)
Short Float %2.25%
Short Ratio3.37
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 | 16.98 | ||
| Fwd PE | 24.09 | ||
| P/S | 0.81 | ||
| P/FCF | 13.23 | ||
| P/OCF | 8.39 | ||
| P/B | 1.46 | ||
| P/tB | 2 | ||
| EV/EBITDA | 9.27 |
EPS(TTM)2.45
EY5.89%
EPS(NY)1.73
Fwd EY4.15%
FCF(TTM)3.14
FCFY7.56%
OCF(TTM)4.96
OCFY11.93%
SpS51.58
BVpS28.57
TBVpS20.76
PEG (NY)1.06
PEG (5Y)1.92
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 | 4.61 |
F-Score7
WACC8.66%
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)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%