Acme United (ACU) AI Stock Analysis

• Market Cap: $145.94M
• Dividend Yield: 1.56%
• Average Volume (3M): 12.00K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.57
• Revenue Growth: 2.56%
• EPS Growth: -47.22%
• Country: US
• Employees: 633
• Sector: Industrials
• Sector Strength: 84
• Industry: Household & Personal Products
• EPS (TTM): 0.41
• Shares Outstanding: 3,790,689
• 10 Day Avg. Volume: 12,419
• 30 Day Avg. Volume: 12,003
• PEG Ratio: -0.33
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -45.11
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 1.77
• Enterprise Value/Ebitda: 1.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $42.00 ▲(7.39%Upside)

Acme United's overall score is buoyed by its strong balance sheet and positive earnings call guidance, highlighting growth in specific segments and strategic initiatives. However, declining profitability and cash flow, alongside technical and valuation concerns, pose risks that moderate the score.

Acme United Business Overview & Revenue Model

Company Description

Acme United Corporation supplies first aid and safety, cutting, sharpening, and measuring products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. The company offers scissors, shears, knives, rulers, pencil sharpeners, paper trimmers, safety cutters, lettering products, glue guns, and other craft products under the Westcott brand name; and cutting tools under the Clauss brand. It also provides fixed blades, folding knives, sight cutting tools, and tactical tools under the Camillus brand; fishing tools and knives, as well as cut and puncture resistant gloves, telescopic landing nets, net containment systems, and tools and fishing gaffs under the Cuda brand; and sharpening tools under the DMT brand. In addition, the company offers first aid kit and safety solutions under the First Aid Only brand; portable eyewash solution and over-the-counter medication, including active ingredients aspirin, acetaminophen, and ibuprofen under the PhysiciansCare brand; bodily fluid and spill clean-up solution under the Spill Magic brand; various first aid kit, refill, and safety supplies, including CPR kits, burn kits, and automotive and emergency first aid kits under the First Aid Central; and alcohol prep pads, alcohol wipes, benzalkonium chloride wipes, various antiseptic wipes, castile soaps, and lens cleaning wipes under the Med-Nap brand. It sells its products directly and through its independent manufacturer representatives to wholesale, contract, and retail stationery distributors; office supply super stores; school supply distributors; industrial distributors; wholesale florists; mass market and e-commerce retailers; and hardware chains, as well as sells a selection of products through its websites. The company was formerly known as Acme Shear Company and changed its name to Acme United Corporation in 1971. Acme United Corporation was founded in 1867 and is based in Shelton, Connecticut.

How the Company Makes Money

Acme United makes money primarily through the sale of its wide range of products across multiple distribution channels, including retail outlets, e-commerce platforms, and direct sales to businesses and institutions. The company's revenue streams are diversified across its various product categories, such as cutting tools, measuring instruments, and first aid supplies. Acme United benefits from strategic partnerships with major retailers and distributors, which enhance its market reach and drive sales growth. Additionally, the company invests in product innovation and branding to maintain competitive advantage and customer loyalty in its target markets.

Acme United Financial Statement Overview

Summary

Acme United shows strong revenue generation but faces declining profitability and cash flow issues. The balance sheet is robust, with a solid equity position and conservative leverage. However, challenges in maintaining profit margins and generating free cash flow may affect future financial stability.

Income Statement

Acme United's income statement shows a stable revenue base with moderate growth. The gross profit margin is healthy at approximately 39.2% for the latest year, indicating efficient production and sales processes. However, the net profit margin has declined from the previous year, suggesting increased costs or expenses impacting profitability. The EBIT and EBITDA margins are strong, yet the declining net income raises concerns about bottom-line efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a high equity ratio of 65.9%, indicating financial stability. The debt-to-equity ratio stands at 0.31, showing conservative leverage use. Return on equity is moderate at 9.4%, reflecting reasonable profitability from shareholder investments. However, the decrease in stockholders' equity from the previous year suggests potential challenges in asset management or profit retention.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow from previous years, affecting liquidity. The absence of operating cash flow in the latest year limits the ability to analyze cash generation from operations. While past years show positive free cash flow, ongoing negative figures could impact future operational and investment capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
194.49M	191.50M	193.96M	182.09M	164.00M
	Gross Profit
76.35M	72.21M	63.56M	64.80M	59.59M
	EBIT
14.14M	13.19M	1.48M	8.54M	11.41M
	EBITDA
20.44M	30.90M	10.59M	20.30M	14.61M
	Net Income Common Stockholders
10.02M	17.79M	3.03M	13.66M	8.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.40M	4.80M	6.10M	4.84M	4.17M
	Total Assets
162.17M	149.24M	164.38M	144.44M	129.87M
	Total Debt
32.40M	25.93M	63.83M	48.50M	47.98M
	Net Debt
26.01M	20.72M	57.73M	43.66M	43.81M
	Total Liabilities
55.19M	51.34M	85.35M	67.36M	67.15M
	Stockholders Equity
106.98M	97.90M	79.03M	77.08M	62.72M
Cash Flow		Free Cash Flow
4.83M	23.92M	-1.71M	-1.23M	3.15M
	Operating Cash Flow
11.98M	28.90M	2.89M	5.14M	5.72M
	Investing Cash Flow
-12.94M	7.43M	-14.23M	-6.37M	-13.95M
	Financing Cash Flow
2.00M	-38.44M	14.28M	2.04M	5.29M

Acme United Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACU, the sentiment is Neutral. The current price of 39.11 is above the 20-day moving average (MA) of 39.02, below the 50-day MA of 39.32, and below the 200-day MA of 39.63, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 15.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ACU.

Acme United Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACU	66 Neutral	$145.94M	15.72	9.68%	1.56%	2.56%	-47.22%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
EPC	65 Neutral	$1.08B	13.43	5.53%	2.61%	-2.11%	-28.79%
HELE	64 Neutral	$596.05M	4.95	7.45%	―	-4.93%	-23.61%
NUS	62 Neutral	$379.49M	―	-4.93%	3.13%	-11.85%	-1080.00%
SPB	58 Neutral	$1.30B	24.87	2.79%	3.52%	1.46%	-95.70%
NWL	50 Neutral	$2.27B	―	-8.46%	5.15%	-6.09%	17.71%