ACME UNITED CORP (ACU) Stock Fundamental Analysis
NYSEARCA:ACU - NYSE Arca - US0048161048 - Common Stock - Currency: USD
Taking everything into account, ACU scores 6 out of 10 in our fundamental rating. ACU was compared to 83 industry peers in the Commercial Services & Supplies industry. ACU scores excellent on profitability, but 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.
In the past 5 years ACU always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.18%, ACU is doing good in the industry, outperforming 71.08% of the companies in the same industry.
ACU has a Return On Equity of 9.37%. This is in the better half of the industry: ACU outperforms 66.27% of its industry peers.
ACU's Return On Invested Capital of 8.11% is fine compared to the rest of the industry. ACU outperforms 65.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACU is below the industry average of 10.89%.
The 3 year average ROIC (6.73%) for ACU is below the current ROIC(8.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 9.37% | ||
| ROIC | 8.11% |
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 (5.15%) than 66.27% of its industry peers.
In the last couple of years the Profit Margin of ACU has grown nicely.
The Operating Margin of ACU (7.27%) is better than 60.24% of its industry peers.
ACU's Operating Margin has improved in the last couple of years.
ACU's Gross Margin of 39.26% is fine compared to the rest of the industry. ACU outperforms 65.06% 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 | 7.27% | ||
| PM (TTM) | 5.15% | ||
| GM | 39.26% |
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.
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.
ACU has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.41 indicates that ACU is not in any danger for bankruptcy at the moment.
ACU has a better Altman-Z score (4.41) than 79.52% of its industry peers.
The Debt to FCF ratio of ACU is 5.78, which is a neutral value as it means it would take ACU, 5.78 years of fcf income to pay off all of its debts.
ACU has a Debt to FCF ratio of 5.78. This is in the better half of the industry: ACU outperforms 66.27% of its industry peers.
ACU has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ACU (0.26) is better than 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 5.78 | ||
| Altman-Z | 4.41 |
ROIC/WACC0.94
WACC8.66%
2.3 Liquidity
ACU has a Current Ratio of 4.17. This indicates that ACU is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.17, ACU belongs to the top of the industry, outperforming 89.16% of the companies in the same industry.
ACU has a Quick Ratio of 1.71. This is a normal value and indicates that ACU is financially healthy and should not expect problems in meeting its short term obligations.
ACU has a better Quick ratio (1.71) than 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.17 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.15% over the past year.
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
Based on estimates for the next years, ACU will show a decrease in Earnings Per Share. The EPS will decrease by -8.88% on average per year.
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
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
With a Price/Earnings ratio of 15.87, ACU is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of ACU indicates a somewhat cheap valuation: ACU is cheaper than 72.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ACU to the average of the S&P500 Index (25.82), we can say ACU is valued slightly cheaper.
ACU is valuated rather expensively with a Price/Forward Earnings ratio of 22.52.
Based on the Price/Forward Earnings ratio, ACU is valued a bit cheaper than the industry average as 61.45% of the companies are valued more expensively.
ACU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 22.52 |
4.2 Price Multiples
73.49% of the companies in the same industry are more expensive than ACU, based on the Enterprise Value to EBITDA ratio.
ACU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACU is cheaper than 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.22 | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
ACU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ACU has a very decent profitability rating, which 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)0.99
PEG (5Y)1.79
EPS Next 2Y-15.69%
EPS Next 3Y-8.88%
5. Dividend
5.1 Amount
ACU has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.47, ACU pays a better dividend. On top of this ACU pays more dividend than 80.72% of the companies listed in the same industry.
ACU's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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 22.17% of its income as dividend. This is a sustainable payout ratio.
DP22.17%
EPS Next 2Y-15.69%
EPS Next 3Y-8.88%
38.89
+0.27 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners86.57%
Inst Owner Change0.87%
Ins Owners11.08%
Ins Owner Change-0.56%
Market Cap145.84M
Analysts83.33
Price Target53.81 (38.36%)
Short Float %0.3%
Short Ratio0.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.6
Dividend Growth(5Y)4.57%
DP22.17%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.02%
Min EPS beat(2)-25.74%
Max EPS beat(2)-16.3%
EPS beat(4)2
Avg EPS beat(4)-4.99%
Min EPS beat(4)-25.74%
Max EPS beat(4)14.81%
EPS beat(8)3
Avg EPS beat(8)-2.52%
EPS beat(12)3
Avg EPS beat(12)-35.56%
EPS beat(16)4
Avg EPS beat(16)-28.15%
Revenue beat(2)1
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-10.71%
Max Revenue beat(2)7.74%
Revenue beat(4)1
Avg Revenue beat(4)-3.57%
Min Revenue beat(4)-10.71%
Max Revenue beat(4)7.74%
Revenue beat(8)2
Avg Revenue beat(8)-4.41%
Revenue beat(12)3
Avg Revenue beat(12)-3.66%
Revenue beat(16)5
Avg Revenue beat(16)-2.33%
PT rev (1m)0%
PT rev (3m)-0.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.46%
EPS NY rev (1m)0%
EPS NY rev (3m)25.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 22.52 | ||
| P/S | 0.75 | ||
| P/FCF | 30.22 | ||
| P/OCF | 12.18 | ||
| P/B | 1.36 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)2.45
EY6.3%
EPS(NY)1.73
Fwd EY4.44%
FCF(TTM)1.29
FCFY3.31%
OCF(TTM)3.19
OCFY8.21%
SpS51.86
BVpS28.53
TBVpS20.47
PEG (NY)0.99
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 9.37% | ||
| ROCE | 10.15% | ||
| ROIC | 8.11% | ||
| ROICexc | 8.5% | ||
| ROICexgc | 11% | ||
| OM | 7.27% | ||
| PM (TTM) | 5.15% | ||
| GM | 39.26% | ||
| FCFM | 2.48% |
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-Score5
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 5.78 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 117.79% | ||
| Cap/Sales | 3.68% | ||
| Interest Coverage | 7.43 | ||
| Cash Conversion | 59.26% | ||
| Profit Quality | 48.16% | ||
| Current Ratio | 4.17 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 4.41 |
F-Score5
WACC8.66%
ROIC/WACC0.94
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 1Y7.22%
EBIT growth 3Y3.46%
EBIT growth 5Y10.9%
EBIT Next Year10.18%
EBIT Next 3Y6.19%
EBIT Next 5YN/A
FCF growth 1Y-79.83%
FCF growth 3YN/A
FCF growth 5Y-18%
OCF growth 1Y-58.56%
OCF growth 3Y32.56%
OCF growth 5Y-4.02%