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Acme United
(ACU)
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Rating:63Neutral
Price Target:
$64.00
▲(18.65% Upside)
Action:Reiterated
Date:07/23/26
ACU scores as moderately attractive, led by solid underlying profitability and a constructive earnings outlook that highlights strong sales growth and improving gross margins with expected easing of tariff pressure. The score is held back primarily by weakened recent cash-flow conversion and normalized net profitability versus 2023, while technical signals are mixed and valuation appears fair rather than clearly cheap.
Positive Factors
Revenue growth and margin expansion
Acme United shows a durable re-acceleration in top-line growth (Q2 +16%, YTD +15%) alongside meaningful gross margin expansion (+160bps in Q2). This indicates sustainable demand across channels and improving product mix that supports lasting operating leverage as tariff pressures ease.
Negative Factors
Weakened cash-flow conversion
Free cash flow fell sharply (≈56.6% decline) and now represents only ~42% of net income, with operating cash covering net income by ~0.84x. This weaker cash conversion heightens execution risk, constrains reinvestment, and limits the company's ability to absorb shocks or accelerate M&A comfortably.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and margin expansion
Acme United shows a durable re-acceleration in top-line growth (Q2 +16%, YTD +15%) alongside meaningful gross margin expansion (+160bps in Q2). This indicates sustainable demand across channels and improving product mix that supports lasting operating leverage as tariff pressures ease.
Read all positive factors
Acme United (ACU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$216.66M
Dividend Yield1.13%
Average Volume (3M)9.50K
Price to Earnings (P/E)22.1
Beta (1Y)0.46
Revenue Growth9.04%
EPS Growth-6.36%
CountryUS
Employees649
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)2.57
Shares Outstanding3,810,359
10 Day Avg. Volume11,184
30 Day Avg. Volume9,501
Financial Highlights & Ratios
PEG Ratio-20.30
Price to Book (P/B)1.30
Price to Sales (P/S)0.78
P/FCF Ratio20.15
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.56
Revenue Forecast (FY)$218.81M
Acme United Business Overview & Revenue Model
Company Description
Acme United Corporation is a global supplier specializing in first aid, safety, cutting, sharpening, and measuring tools. Its products cater to a diverse clientele across educational institutions, households, corporate offices, hardware stores, sp...
How the Company Makes Money
Acme United makes money primarily by selling branded and private-label products to customers across retail, e-commerce, and wholesale/B2B distribution. The company’s main revenue streams come from (1) cutting and sharpening products (e.g., scissor...
Acme United Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveys a generally positive trajectory: strong top-line growth (16% Q2, 15% YTD), margin expansion driven by high‑margin MyMedic mix, regional strength in Europe and a recovery of Westcott promotional activity. Strategic investments (MyMedic acquisition, Spill Magic capacity, MedNap upgrades) and healthy free cash flow support growth prospects. Offsetting items include elevated SG&A (advertising for MyMedic), YTD profit declines due to prior tariff effects, higher inventory and modest leverage increase, and exposure to freight/currency headwinds. Management provided visibility that tariff pressures should ease over the next quarters and expects MyMedic profitability to improve, suggesting momentum into Q4.Positive Updates
Revenue Growth — Quarter and Year-to-Date
Net sales increased to $62.7M in Q2 2026 from $54.0M in Q2 2025, a 16% year-over-year increase. Sales for the six months ended 06/30/2026 were $115M vs. $100M in 2025, a 15% increase.
Negative Updates
Year-to-Date Profit Decline
Net income for the six months ended 06/30/2026 was $6.0M vs. $6.4M a year ago, a decrease of 6%; diluted EPS declined 7% (from $1.57 to $1.46). Management attributes most of the decline to tariff-related costs realized earlier in the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth — Quarter and Year-to-Date
Net sales increased to $62.7M in Q2 2026 from $54.0M in Q2 2025, a 16% year-over-year increase. Sales for the six months ended 06/30/2026 were $115M vs. $100M in 2025, a 15% increase.
Read all positive updates
Company Guidance
Management guided to continued growth in First Aid & Medical, a resumption of promotional retail activity for Westcott, improving profitability at MyMedic and strengthening gross margins as high‑tariff inventory is replaced; key metrics cited: Q2 net sales $62.7M (+16% vs $54M), Q2 net income $5.1M and EPS $1.22 (+5%), Q2 gross margin 42.6% (vs 41.0% in 2025) and YTD gross margin 41.3% (vs 40.1%), Q2 SG&A $19.9M (32% of sales) and YTD SG&A $38.9M (34% of sales), YTD sales $115M (+15% vs $100M; +7% excl. MyMedic), quarterly excl. MyMedic sales +8%, U.S. segment Q2 +17% (excl. MyMedic +8%), Europe +19% (local currency) and Canada +3% (Q2, +6% YTD); MyMedic specifics: 2025 sales $19M, Q2 sales ~ $4.3M with breakeven operations, about one‑third YTD growth and seasonality with ~35% of sales in Q4; balance sheet/activity: paid ~$14M for MyMedic, $1.6M for German line, $6M Tennessee facility, net debt $27.3M (up from $22.8M), free cash flow ~ $15M, and ~$10M of extra inventory to buffer risks—management expects tariff headwinds (which reduced U.S. margins by ~100 bps in Q2 and were larger earlier) to lessen over the next two quarters, supporting further margin expansion.Acme United Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
64
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 211.60M | 196.54M | 194.49M | 191.50M | 193.96M | 182.09M |
| Gross Profit | 84.82M | 77.41M | 76.35M | 72.21M | 63.56M | 64.80M |
| EBITDA | 21.43M | 21.15M | 20.44M | 30.90M | 10.59M | 20.30M |
| Net Income | 9.82M | 10.19M | 10.02M | 17.79M | 3.03M | 13.66M |
Balance Sheet | ||||||
| Total Assets | 200.65M | 171.00M | 162.17M | 149.24M | 164.38M | 144.44M |
| Cash, Cash Equivalents and Short-Term Investments | 5.04M | 3.60M | 6.40M | 4.80M | 6.10M | 4.84M |
| Total Debt | 38.48M | 28.26M | 32.84M | 25.51M | 63.42M | 47.48M |
| Total Liabilities | 79.34M | 53.39M | 55.19M | 51.34M | 85.35M | 67.36M |
| Stockholders Equity | 121.30M | 117.61M | 106.98M | 97.90M | 79.03M | 77.08M |
Cash Flow | ||||||
| Free Cash Flow | 8.59M | 7.58M | 4.83M | 23.92M | -1.71M | -1.23M |
| Operating Cash Flow | 18.15M | 18.23M | 11.98M | 28.90M | 2.89M | 5.14M |
| Investing Cash Flow | -26.70M | -12.30M | -12.94M | 7.43M | -14.23M | -6.37M |
| Financing Cash Flow | 2.03M | -8.88M | 2.00M | -38.44M | 14.28M | 2.04M |
Acme United Technical Analysis
Positive
53.94
Price Trends
48.02
Positive
45.64
Positive
43.02
Positive
Market Momentum
2.76
Negative
63.06
Neutral
58.22
Neutral
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 53.94 is above the 20-day moving average (MA) of 52.21, above the 50-day MA of 48.02, and above the 200-day MA of 43.02, indicating a bullish trend. The MACD of 2.76 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 58.22 is Neutral, 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 34 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $216.66M | 22.12 | 8.33% | 1.19% | 9.04% | -6.36% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $251.98M | 4.64 | 6.84% | 4.72% | -14.17% | ― | |
58 Neutral | $1.25B | -16.09 | -5.14% | 2.17% | -5.30% | -196.78% | |
52 Neutral | $58.65M | 54.27 | 5.39% | ― | 5.76% | -73.80% | |
47 Neutral | $88.84M | -12.35 | -9.41% | ― | -8.16% | 85.14% |
* Consumer Defensive Sector Average
ACU
Acme United
56.17
15.86
39.36%
NUS
Nu Skin
5.19
-3.49
-40.23%
EPC
Edgewell Personal Care
28.12
6.73
31.44%
SLSN
Solesence
1.03
-2.29
-68.98%
SKIN
Beauty Health
0.77
-1.12
-59.42%
Acme United Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Acme United Secures New $65 Million Credit Facility
Positive
Jul 21, 2026
On July 15, 2026, Acme United Corporation entered into a new $65 million syndicated credit facility with HSBC Bank USA and City National Bank, replacing a prior $65 million facility with HSBC that was set to expire on May 31, 2027. The new agreeme...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.