ENERPAC TOOL GROUP CORP (EPAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EPAC - US2927651040 - Common Stock
40.2 USD
+0.8 (+2.03%)
40.197 USD
0 (-0.01%)
Taking everything into account, EPAC scores 7 out of 10 in our fundamental rating. EPAC was compared to 132 industry peers in the Machinery industry. EPAC gets an excellent profitability rating and is at the same time showing great financial health properties. EPAC has a correct valuation and a medium growth rate. This makes EPAC very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year EPAC was profitable.
- EPAC had a positive operating cash flow in the past year.
- Each year in the past 5 years EPAC has been profitable.
- EPAC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EPAC's Return On Assets of 11.02% is amongst the best of the industry. EPAC outperforms 81.82% of its industry peers.
- EPAC has a better Return On Equity (20.92%) than 88.64% of its industry peers.
- EPAC has a Return On Invested Capital of 15.41%. This is amongst the best in the industry. EPAC outperforms 88.64% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EPAC is above the industry average of 10.24%.
- The last Return On Invested Capital (15.41%) for EPAC is above the 3 year average (14.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.02% | ||
| ROE | 20.92% | ||
| ROIC | 15.41% |
ROA(3y)9.45%
ROA(5y)7.01%
ROE(3y)19.18%
ROE(5y)14.34%
ROIC(3y)14.2%
ROIC(5y)10.8%
1.3 Margins
- The Profit Margin of EPAC (14.64%) is better than 86.36% of its industry peers.
- EPAC's Profit Margin has improved in the last couple of years.
- EPAC's Operating Margin of 22.19% is amongst the best of the industry. EPAC outperforms 93.94% of its industry peers.
- EPAC's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 50.39%, EPAC belongs to the top of the industry, outperforming 92.42% of the companies in the same industry.
- In the last couple of years the Gross Margin of EPAC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.19% | ||
| PM (TTM) | 14.64% | ||
| GM | 50.39% |
OM growth 3Y46.3%
OM growth 5Y31.44%
PM growth 3Y76.2%
PM growth 5Y154.11%
GM growth 3Y2.85%
GM growth 5Y2.8%
2. Health
2.1 Basic Checks
- EPAC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- EPAC has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, EPAC has less shares outstanding
- EPAC has a better debt/assets ratio than last year.
2.2 Solvency
- EPAC has an Altman-Z score of 5.39. This indicates that EPAC is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of EPAC (5.39) is better than 75.76% of its industry peers.
- EPAC has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
- EPAC has a Debt to FCF ratio of 1.84. This is in the better half of the industry: EPAC outperforms 78.03% of its industry peers.
- A Debt/Equity ratio of 0.42 indicates that EPAC is not too dependend on debt financing.
- EPAC has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.84 | ||
| Altman-Z | 5.39 |
ROIC/WACC1.62
WACC9.49%
2.3 Liquidity
- A Current Ratio of 2.83 indicates that EPAC has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.83, EPAC is doing good in the industry, outperforming 73.48% of the companies in the same industry.
- EPAC has a Quick Ratio of 2.14. This indicates that EPAC is financially healthy and has no problem in meeting its short term obligations.
- EPAC has a better Quick ratio (2.14) than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
- EPAC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.89%.
- The Earnings Per Share has been growing by 60.67% on average over the past years. This is a very strong growth
- EPAC shows a small growth in Revenue. In the last year, the Revenue has grown by 3.91%.
- EPAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.57% yearly.
EPS 1Y (TTM)2.89%
EPS 3Y29.92%
EPS 5Y60.67%
EPS Q2Q%-10%
Revenue 1Y (TTM)3.91%
Revenue growth 3Y2.6%
Revenue growth 5Y4.57%
Sales Q2Q%-0.67%
3.2 Future
- The Earnings Per Share is expected to grow by 10.47% on average over the next years. This is quite good.
- EPAC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.68% yearly.
EPS Next Y7.46%
EPS Next 2Y10.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.92%
Revenue Next 2Y4.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.58 indicates a rather expensive valuation of EPAC.
- EPAC's Price/Earnings ratio is a bit cheaper when compared to the industry. EPAC is cheaper than 66.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of EPAC to the average of the S&P500 Index (28.39), we can say EPAC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 18.10, which indicates a rather expensive current valuation of EPAC.
- Based on the Price/Forward Earnings ratio, EPAC is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of EPAC to the average of the S&P500 Index (25.72), we can say EPAC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.58 | ||
| Fwd PE | 18.1 |
4.2 Price Multiples
- 62.88% of the companies in the same industry are more expensive than EPAC, based on the Enterprise Value to EBITDA ratio.
- 70.45% of the companies in the same industry are more expensive than EPAC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.79 | ||
| EV/EBITDA | 13.94 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EPAC does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of EPAC may justify a higher PE ratio.
PEG (NY)3.03
PEG (5Y)0.37
EPS Next 2Y10.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.10%, EPAC is not a good candidate for dividend investing.
- EPAC's Dividend Yield is comparable with the industry average which is at 1.01.
- Compared to an average S&P500 Dividend Yield of 1.82, EPAC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
5.2 History
- The dividend of EPAC has a limited annual growth rate of 0.25%.
- EPAC has been paying a dividend for at least 10 years, so it has a reliable track record.
- EPAC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.25%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
- EPAC pays out 2.35% of its income as dividend. This is a sustainable payout ratio.
- EPAC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP2.35%
EPS Next 2Y10.47%
EPS Next 3YN/A
ENERPAC TOOL GROUP CORP / EPAC FAQ
Can you provide the ChartMill fundamental rating for ENERPAC TOOL GROUP CORP?
ChartMill assigns a fundamental rating of 7 / 10 to EPAC.
What is the valuation status for EPAC stock?
ChartMill assigns a valuation rating of 5 / 10 to ENERPAC TOOL GROUP CORP (EPAC). This can be considered as Fairly Valued.
What is the profitability of EPAC stock?
ENERPAC TOOL GROUP CORP (EPAC) has a profitability rating of 9 / 10.
What is the valuation of ENERPAC TOOL GROUP CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ENERPAC TOOL GROUP CORP (EPAC) is 22.58 and the Price/Book (PB) ratio is 4.94.
Is the dividend of ENERPAC TOOL GROUP CORP sustainable?
The dividend rating of ENERPAC TOOL GROUP CORP (EPAC) is 5 / 10 and the dividend payout ratio is 2.35%.