Acme United (ACU) AI Stock Analysis

• Market Cap: $166.07M
• Dividend Yield: 1.49%
• Average Volume (3M): 9.04K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.68
• Revenue Growth: 0.70%
• EPS Growth: -48.75%
• Country: US
• Employees: 633
• Sector: Consumer Defensive
• Sector Strength: 41
• Industry: Household & Personal Products
• EPS (TTM): 1.16
• Shares Outstanding: 3,799,252
• 10 Day Avg. Volume: 10,582
• 30 Day Avg. Volume: 9,040
• 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: 1.21
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 2.63
• Enterprise Value/Ebitda: 9.78
• 1Y Price Target: $44.00
• Price Target Upside: 7.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: $44.00 ▲(7.24% Upside)

Acme United's overall stock score reflects a stable financial position with strong gross margins and low leverage. However, declining revenue and net profit margins pose risks to future profitability. The technical analysis indicates mixed signals, with some short-term weakness but longer-term support. The valuation is reasonable, and the earnings call highlights both achievements and challenges, particularly due to tariffs.

Positive Factors

Financial Flexibility

The extension of the credit facility enhances Acme United's financial flexibility, ensuring access to capital for strategic initiatives and operational stability.

Cash Flow and Debt Reduction

Strong cash flow and debt reduction improve financial health, providing resources for growth and reducing financial risk.

Growth in Canadian Segment

Significant growth in the Canadian segment indicates successful market penetration and product demand, supporting overall revenue stability.

Negative Factors

Decline in Net Sales

A decline in net sales poses a risk to future revenue growth and profitability, necessitating strategic adjustments to reverse the trend.

Impact of Tariffs

High tariffs disrupt supply chains and sales, requiring strategic shifts in sourcing and pricing to mitigate long-term impacts.

Sales Decline in Europe

Declining sales in Europe suggest market challenges that could affect Acme United's international revenue and growth prospects.

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 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 in the competitive household and personal products industry. Potential risks include increasing debt levels, which should be monitored, but current leverage and cash flow generation mitigate these concerns.

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	20.51M	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	170.87M	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	33.72M	32.40M	25.51M	63.42M	47.48M	47.71M
Total Liabilities	57.15M	55.19M	51.34M	85.35M	67.36M	67.15M
Stockholders Equity	113.72M	106.98M	97.90M	79.03M	77.08M	62.72M
Cash Flow
Free Cash Flow	12.22M	4.83M	23.92M	-1.71M	-1.23M	3.15M
Operating Cash Flow	18.24M	11.98M	28.90M	2.89M	5.14M	5.72M
Investing Cash Flow	-4.92M	-12.94M	7.43M	-14.23M	-6.37M	-13.95M
Financing Cash Flow	-13.58M	2.00M	-38.44M	14.28M	2.04M	5.29M

Acme United Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.03
• 50DMA: Negative
• 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 Negative. The current price of 41.03 is below the 20-day moving average (MA) of 42.02, below the 50-day MA of 42.19, and above the 200-day MA of 39.66, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 29.88 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
NUS	74 Outperform	$579.12M	5.84	13.68%	1.99%	-11.79%	―
ACU	66 Neutral	$166.07M	17.36	9.50%	1.49%	0.70%	-48.75%
Sector *	62 Neutral	$20.56B	14.79	-3.30%	3.19%	1.94%	-8.41%
EPC	58 Neutral	$1.02B	16.00	4.12%	2.76%	-2.92%	-43.06%
SPB	57 Neutral	$1.33B	20.51	2.98%	3.52%	-2.78%	-17.38%
HELE	51 Neutral	$567.00M	5.74	-23.99%	―	-4.39%	-326.42%
NWL	51 Neutral	$2.55B	―	-8.42%	4.73%	-5.29%	9.72%

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.

The most recent analyst rating on (ACU) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Acme United stock, see the ACU Stock Forecast page.