Acme United (ACU) AI Stock Analysis

• Market Cap: $141.12M
• Dividend Yield: 1.67%
• Average Volume (3M): 9.25K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.67
• Revenue Growth: 2.35%
• EPS Growth: -50.52%
• Country: US
• Employees: 633
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.46
• Shares Outstanding: 3,806,724
• 10 Day Avg. Volume: 5,325
• 30 Day Avg. Volume: 9,253
• PEG Ratio: -0.30
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 28.62
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 3.49
• Enterprise Value/Ebitda: 12.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.53
• Revenue Forecast (FY): $196.38M

• Rating: 64 Neutral
• Price Target: $40.00 ▲(7.96% Upside)

Acme United's overall stock score reflects a stable financial foundation with strong profitability margins and low leverage. However, the significant revenue decline and cash flow challenges are concerning. The technical analysis indicates a bearish trend, which could impact future performance. The valuation is reasonable, with a fair P/E ratio and a modest dividend yield, making the stock attractive to some investors.

Positive Factors

Strong Profitability Margins

Acme United's ability to maintain strong profitability margins despite revenue declines indicates efficient cost management and pricing power, which are crucial for long-term sustainability.

Low Leverage

The company's low leverage provides financial flexibility and reduces risk, allowing it to navigate economic downturns and invest in growth opportunities without excessive debt burden.

Strong Cash Generation

Strong cash generation relative to net income suggests robust operational efficiency, enabling Acme United to fund operations and growth initiatives internally, reducing reliance on external financing.

Negative Factors

Revenue Decline

The substantial drop in revenue raises concerns about market demand and competitive pressures, which could impact the company's ability to sustain growth and profitability in the long term.

Cash Flow Challenges

Declining free cash flow growth indicates potential liquidity issues, which could constrain Acme United's ability to invest in strategic initiatives and meet financial obligations, affecting long-term growth prospects.

Earnings Decline

A sharp decline in EPS growth suggests weakening profitability and could signal challenges in maintaining competitive advantage, potentially affecting investor confidence and future earnings potential.

Acme United Business Overview & Revenue Model

Company Description

Acme United Corporation (ACU) is a leading supplier of cutting, measuring, and safety products, primarily serving the school, office, home, and industrial markets. The company operates in several business segments, including school and office products, industrial and safety products, and medical products. Acme United’s core offerings include scissors, cutting tools, safety knives, and first aid kits, with a focus on innovation and quality to meet the diverse needs of its customers.

How the Company Makes Money

Acme United generates revenue through the sale of its wide range of products across various sectors. The company's revenue model is primarily based on direct sales to retailers, wholesalers, and distributors, as well as through e-commerce platforms. Key revenue streams include the sale of school and office supplies, industrial safety products, and medical kits. Additionally, Acme United has established significant partnerships with major retail chains and wholesalers which help to expand its market reach. The company also benefits from brand recognition and customer loyalty in its product categories, contributing to repeat sales and stable revenue growth.

Acme United Financial Statement Overview

Summary

Acme United demonstrates a stable financial position with strong profitability margins and low leverage. However, the significant revenue decline and cash flow challenges in the TTM period are areas of concern. The company needs to address these issues to ensure sustainable growth and financial health in the future.

Income Statement

Acme United's income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 24.79%, which is concerning. However, the company maintains a healthy gross profit margin of 39.64% and a net profit margin of 5.56%. The EBIT and EBITDA margins are also stable at 7.80% and 10.99%, respectively. Despite the revenue drop, the company has managed to sustain profitability, which is a positive sign.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.22, indicating low leverage. Return on equity is moderate at 9.87%, suggesting efficient use of equity capital. The equity ratio stands at 66.88%, highlighting a solid financial foundation. Overall, the balance sheet is stable with low financial risk.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth by 59.09% in the TTM period. However, the operating cash flow to net income ratio is exceptionally high at 744.79, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 30.40%, showing some cash flow conversion issues. The cash flow position needs improvement to support long-term growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.95M	194.49M	191.50M	193.96M	182.09M	164.00M
Gross Profit	57.85M	76.35M	72.21M	63.56M	64.80M	59.59M
EBITDA	16.04M	20.44M	30.90M	10.59M	20.30M	14.61M
Net Income	8.12M	10.02M	17.79M	3.03M	13.66M	8.10M
Balance Sheet
Total Assets	173.04M	162.17M	149.24M	164.38M	144.44M	129.87M
Cash, Cash Equivalents and Short-Term Investments	5.15M	6.40M	4.80M	6.10M	4.84M	4.17M
Total Debt	35.14M	32.84M	25.51M	63.42M	47.48M	47.71M
Total Liabilities	57.28M	55.19M	51.34M	85.35M	67.36M	67.15M
Stockholders Equity	115.76M	106.98M	97.90M	79.03M	77.08M	62.72M
Cash Flow
Free Cash Flow	5.00M	4.83M	23.92M	-1.71M	-1.23M	3.15M
Operating Cash Flow	16.45M	11.98M	28.90M	2.89M	5.14M	5.72M
Investing Cash Flow	-10.35M	-12.94M	7.43M	-14.23M	-6.37M	-13.95M
Financing Cash Flow	-6.65M	2.00M	-38.44M	14.28M	2.04M	5.29M

Acme United Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACU, the sentiment is Negative. The current price of 37.05 is above the 20-day moving average (MA) of 36.77, below the 50-day MA of 38.05, and below the 200-day MA of 39.60, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 47.84 is Neutral, neither overbought nor oversold. The STOCH value of 68.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACU.

Acme United Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EWCZ	64 Neutral	$220.16M	15.53	15.38%	―	-5.47%	13.42%
ACU	64 Neutral	$141.12M	15.24	9.02%	1.67%	2.35%	-50.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NUS	61 Neutral	$486.53M	4.59	14.55%	2.40%	-12.10%	―
EPC	58 Neutral	$777.35M	31.35	1.62%	3.59%	-1.34%	-73.59%
SKIN	51 Neutral	$175.02M	-4.90	-18.73%	―	-13.14%	57.98%
SLSN	50 Neutral	$144.60M	146.43	6.60%	―	30.04%	-53.50%

Acme United Corporate Events

Acme United Reports Modest Sales Growth in Q3 2025

Acme United Corporation is a global supplier of innovative safety solutions and cutting technology, serving markets such as schools, homes, offices, hardware, sporting goods, and industrial sectors. The company is known for its leading brands including First Aid Only®, Westcott®, and Spill Magic®.