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Acme United Corporation. (ACU)
:ACU
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Acme United
(NYSE MKT:ACU)
73Outperform
Acme United (ACU) vs. S&P 500 (SPY)
Market Cap
$155.36M
Dividend Yield1.45%
Average Volume (3M)12.38K
Price to Earnings (P/E)16.9
Beta (1Y)0.56
Revenue Growth2.56%
EPS Growth-47.22%
CountryUS
Employees633
SectorIndustrials
Sector Strength67
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)2.45
Shares Outstanding3,754,498
10 Day Avg. Volume18,512
30 Day Avg. Volume12,379
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)N/A
Price to Sales (P/S)0.77
Price to Cash Flow (P/CF)5.90
P/FCF Ratio5.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Acme United Business Overview & Revenue Model
Company DescriptionAcme United Corporation (ACU) is a supplier of cutting, measuring, first aid, and safety products for the school, home, office, hardware, sporting goods, and industrial markets. The company operates through several brands, including Westcott, First Aid Only, PhysiciansCare, Pac-Kit, and Camillus, and is known for its innovative approach to product development and marketing. Its extensive product line ranges from scissors, rulers, and pencil sharpeners to first aid kits and safety products.
How the Company Makes MoneyAcme United makes money primarily through the manufacturing and sale of its diverse range of cutting, measuring, and safety products. The company's revenue streams include direct sales to major retailers, such as office supply stores and mass market retailers, as well as to industrial distributors and e-commerce platforms. Acme United also benefits from its strategic acquisitions that expand its product offerings and market reach. The company’s focus on quality and innovation allows it to maintain competitive pricing and customer loyalty, driving consistent revenue growth.
Acme United Financial Statement Overview
Summary
Acme United exhibits a mixed financial performance with strong revenue generation but declining profitability and cash flow. The balance sheet remains robust, with favorable leverage ratios and equity position. However, challenges in sustaining profit margins and generating free cash flow may pose risks to future financial stability and growth prospects.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.75
Positive
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.70
Positive
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.60
Neutral
| 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 |
| 20.10M | 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 |
| 32.84M | 25.93M | 63.83M | 48.50M | 47.98M | Net Debt |
| 26.44M | 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
Positive
41.38
Price Trends
38.54
Positive
38.68
Positive
39.59
Positive
Market Momentum
0.37
Negative
58.86
Neutral
87.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACU, the sentiment is Positive. The current price of 41.38 is above the 20-day moving average (MA) of 39.45, above the 50-day MA of 38.54, and above the 200-day MA of 39.59, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 87.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACU.
Acme United Risk Analysis
Acme United disclosed 33 risk factors in its most recent earnings report. Acme United reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Acme United Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $155.36M | 16.87 | 9.68% | 1.45% | 2.56% | -47.22% | |
73 Outperform | $770.01M | 6.79 | 7.19% | ― | -4.36% | -26.64% | |
66 Neutral | $1.45B | 16.43 | 6.02% | 2.00% | -1.24% | -10.95% | |
66 Neutral | $1.61B | 15.08 | 4.91% | 2.98% | 2.56% | -91.05% | |
62 Neutral | $4.16B | 11.30 | 5.46% | 215.76% | 4.12% | -8.55% | |
57 Neutral | $270.76M | ― | -19.90% | 4.38% | -12.04% | -1796.38% | |
49 Neutral | $1.97B | ― | -7.37% | 5.96% | -6.77% | 44.59% |
* Industrials Sector Average
Performance Comparison
ACU
Acme United
41.38
1.96
4.97%
HELE
Helen Of Troy
33.69
-66.01
-66.21%
NWL
Newell Brands
4.70
-1.98
-29.64%
NUS
Nu Skin
5.48
-6.82
-55.45%
SPB
Spectrum Brands Holdings
59.81
-18.40
-23.53%
EPC
Edgewell Personal Care
30.04
-6.20
-17.11%
Acme United Earnings Call Summary
Earnings Call Date: Apr 17, 2025 | % Change Since: 3.24% | Next Earnings Date: Jul 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlights positive aspects such as growth in the first aid business and automation advancements, contributing to increased sales and income. However, challenges such as tariff uncertainties, a decline in the European business, and softness in certain product segments present significant concerns.Highlights
Increase in Net Sales and Income
Net sales increased by 2% from $45 million in Q1 2024 to $46 million in Q1 2025. Net income rose from $1.6 million to $1.7 million, and earnings per share increased by 5% from $0.39 to $0.41.
First Aid Business Growth
The first aid business grew by 14% in Q1 2025, driven by new distribution channels and increased sales in the mass and industrial markets.
Automation Advancements
Installation of a new robotic system in the Rocky Mountain, North Carolina plant, costing $650,000 and replacing seven employees with less than a two-year payback. A second system was ordered for the Vancouver, Washington plant.
Debt Reduction and Cash Flow
The company's bank debt less cash decreased from $32 million in March 2024 to $27 million in March 2025. Acme United generated approximately $12 million in free cash flow over twelve months.
Lowlights
Decline in European Business
European business decreased by 7% in Q1 2025 due to a large promotion in 2024 that did not repeat.
Tariff and Supply Chain Uncertainties
High tariff rates on imports from China, reaching 145%, create uncertainty. Supply chain disruptions persist, affecting inventory and pricing strategies.
School and Office Products Decline
Net sales in the US segment for school and office products declined due to a first-time craft sale in Q1 2024 not repeating.
Canadian Office Channel Sales Softness
The Canadian office channel sales were soft, although the first aid business continued to grow.
Challenges with Tariff-Related Price Increases
There is uncertainty around the impact of tariffs on pricing, which may lead to increased costs for consumers and potential demand reduction.
Company Guidance
During the Acme United Corporation's First Quarter 2025 financial results conference call, the company provided guidance indicating a solid performance despite a challenging global macroeconomic environment. Net sales increased by 2% to $46 million compared to the previous year, with net income rising from $1.6 million to $1.7 million, and earnings per share up by 5% to $0.41. The first aid business experienced a significant 14% growth, driving the overall performance. The company highlighted its strategic expansions, including new distribution in Europe and Canada, and investments in automation with a $650,000 robotic system installation. Acme United also addressed the impact of high tariffs and inflation, emphasizing its robust sourcing network and productivity improvements generating over $2 million in annual savings. Despite uncertainties, they are optimistic about potential acquisitions, leveraging their strengths in sourcing and manufacturing to navigate the current economic environment.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.