Acme United (ACU) AI Stock Analysis

• Market Cap: $152.16M
• Dividend Yield: 1.41%
• Average Volume (3M): 9.18K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.72
• Revenue Growth: 0.70%
• EPS Growth: -48.75%
• Country: US
• Employees: 633
• Sector: Consumer Defensive
• Sector Strength: 58
• Industry: Household & Personal Products
• EPS (TTM): 1.16
• Shares Outstanding: 3,799,252
• 10 Day Avg. Volume: 8,111
• 30 Day Avg. Volume: 9,180
• 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: 1.32
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 2.63
• Enterprise Value/Ebitda: 10.56
• 1Y Price Target: $49.00
• Price Target Upside: 13.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $49.00 ▲(13.45% Upside)

Acme United's overall stock score reflects its strong financial performance and strategic management, despite challenges from tariffs and sales declines in certain segments. The company's robust cash flow and debt reduction efforts are significant strengths, while the technical indicators suggest a stable market position. Valuation is reasonable, and the extended credit facility enhances financial flexibility.

Acme United Business Overview & Revenue Model

Company Description

Acme United Corporation (ACU) is a leading supplier of innovative cutting, measuring, and safety products for the school, home, and office markets. The company operates primarily in the consumer and industrial segments, providing a diverse range of products including scissors, knives, first aid kits, and measuring tools. Acme United markets its products under various well-known brands, catering to both retail and institutional customers, and focuses on enhancing product functionality and design to meet consumer needs.

How the Company Makes Money

Acme United generates revenue through the sale of its products across multiple distribution channels, including retail partners, e-commerce platforms, and direct sales to educational institutions and industrial clients. The company benefits from a diversified revenue model that includes wholesale distribution, direct-to-consumer sales, and international markets. Key revenue streams are driven by its established brands, strong customer relationships, and ongoing product innovation. Additionally, Acme United often engages in strategic partnerships with retailers to enhance product visibility and sales, further contributing to its earnings.

Acme United Financial Statement Overview

Summary

Acme United demonstrates strong financial health with robust profitability, efficient balance sheet management, and solid cash flow generation. The stability in revenue and margins signifies a well-managed operation, though increasing debt levels should be monitored.

Income Statement

Acme United's income statement highlights strong profitability with a consistent gross profit margin of around 39%, which is robust for its industry. The net profit margin has slightly improved to 5.1% TTM from 5.2% last year, indicating effective cost management. Revenue growth is modest, with a 0.5% increase TTM, signaling stable performance. EBITDA and EBIT margins are healthy at 10.4% and 7.2% TTM respectively, suggesting solid operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.32, showing good leverage management. The return on equity (ROE) is a strong 9.3% TTM, reflecting efficient use of shareholders' funds. The equity ratio stands at 66.4% TTM, indicating a strong equity base relative to total assets, enhancing financial stability. However, the slight increase in total debt might require monitoring.

Cash Flow

Acme United's cash flow statement shows a significant improvement in free cash flow, increasing by 147% TTM, which enhances financial flexibility. The operating cash flow to net income ratio is robust at 1.87 TTM, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 1.19 TTM further supports the sustainability of cash flows. These metrics highlight strong cash flow health, although capital expenditures have increased slightly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	194.06M	194.49M	191.50M	193.96M	182.09M	164.00M
Gross Profit	76.39M	76.35M	72.21M	63.56M	64.80M	59.59M
EBITDA	18.99M	20.44M	30.90M	10.59M	20.30M	14.61M
Net Income	10.34M	10.02M	17.79M	3.03M	13.66M	8.10M
Balance Sheet
Total Assets	171.15M	162.17M	149.24M	164.38M	144.44M	129.87M
Cash, Cash Equivalents and Short-Term Investments	3.64M	6.40M	4.80M	6.10M	4.84M	4.17M
Total Debt	34.39M	32.84M	25.93M	63.83M	48.50M	47.98M
Total Liabilities	55.96M	55.19M	54.72M	87.05M	68.67M	68.60M
Stockholders Equity	113.72M	106.98M	97.90M	79.03M	77.08M	62.72M
Cash Flow
Free Cash Flow	7.51M	4.83M	23.92M	-1.71M	-1.23M	3.15M
Operating Cash Flow	11.91M	11.98M	28.90M	2.89M	5.14M	5.72M
Investing Cash Flow	-3.30M	-12.94M	7.43M	-14.23M	-6.37M	-13.95M
Financing Cash Flow	-8.92M	2.00M	-38.44M	14.28M	2.04M	5.29M

Acme United Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 43.19 is above the 20-day moving average (MA) of 41.42, above the 50-day MA of 41.33, and above the 200-day MA of 39.55, indicating a bullish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 39.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACU.

Acme United Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACU	76 Outperform	$152.16M	15.90	9.50%	1.41%	0.70%	-48.75%
NUS	74 Outperform	$563.28M	5.68	13.68%	1.98%	-11.79%	―
SPB	62 Neutral	$1.36B	20.99	2.98%	3.19%	-2.78%	-17.38%
EPC	58 Neutral	$1.09B	17.25	4.12%	2.50%	-2.92%	-43.06%
Sector *	53 Neutral	C$5.51B	6.47	12.24%	3.30%	3.58%	-0.92%
NWL	51 Neutral	$2.45B	―	-8.42%	4.85%	-5.29%	9.72%
HELE	49 Neutral	$551.62M	5.74	-23.99%	―	-4.39%	-326.42%

Acme United Corporate Events

Acme United Extends Credit Facility with HSBC

Acme United Corporation has extended the maturity of its $65 million secured revolving credit facility with HSBC Bank USA, N.A. from May 31, 2026, to May 31, 2027, as part of Amendment No. 11 to their Loan and Security Agreement, effective June 26, 2025. This extension provides Acme United with continued financial flexibility, potentially impacting its operational strategies and stakeholder interests positively by maintaining access to capital for an additional year.