tiprankstipranks
Trending News
More News >
Acme United Corporation. (ACU)
:ACU

Acme United (ACU) AI Stock Analysis

Compare
178 Followers

Top Page

AC

Acme United

(NYSE MKT:ACU)

Rating:67Neutral
Price Target:
$48.00
▲(10.02%Upside)
Acme United's overall stock score is driven by its strong financial stability and positive technical momentum. However, concerns about declining profitability and cash flow, along with tariff uncertainties, slightly offset these strengths. The extension of the credit facility and positive earnings call guidance provide additional support, but valuation remains moderate.

Acme United (ACU) vs. SPDR S&P 500 ETF (SPY)

Acme United Business Overview & Revenue Model

Company DescriptionAcme United Corporation (ACU) is a leading supplier of cutting, measuring, first aid, and sharpening products. The company operates in various sectors, including school, home, office, industrial, and safety markets. Acme United's core products include scissors, knives, rulers, pencil sharpeners, and first aid kits, among others. With a rich history dating back to 1867, the company is recognized for its innovation and quality across its diverse product lines.
How the Company Makes MoneyAcme United makes money primarily through the sale of its wide range of products across multiple distribution channels, including retail outlets, e-commerce platforms, and direct sales to businesses and institutions. The company's revenue streams are diversified across its various product categories, such as cutting tools, measuring instruments, and first aid supplies. Acme United benefits from strategic partnerships with major retailers and distributors, which enhance its market reach and drive sales growth. Additionally, the company invests in product innovation and branding to maintain competitive advantage and customer loyalty in its target markets.

Acme United Earnings Call Summary

Earnings Call Date:Apr 17, 2025
(Q1-2025)
|
% Change Since: 9.27%|
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.
Q1-2025 Updates
Positive Updates
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.
Negative Updates
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.

Acme United Financial Statement Overview

Summary
Acme United shows strong revenue generation but faces declining profitability and cash flow issues. The balance sheet is robust, with a solid equity position and conservative leverage. However, challenges in maintaining profit margins and generating free cash flow may affect future financial stability.
Income Statement
75
Positive
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.
Balance Sheet
70
Positive
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.
Cash Flow
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue194.49M191.50M193.96M182.09M164.00M
Gross Profit76.35M72.21M63.56M64.80M59.59M
EBITDA20.44M30.90M10.59M20.30M14.61M
Net Income10.02M17.79M3.03M13.66M8.10M
Balance Sheet
Total Assets162.17M149.24M164.38M144.44M129.87M
Cash, Cash Equivalents and Short-Term Investments6.40M4.80M6.10M4.84M4.17M
Total Debt32.40M25.93M63.83M48.50M47.98M
Total Liabilities55.19M51.34M85.35M67.36M67.15M
Stockholders Equity106.98M97.90M79.03M77.08M62.72M
Cash Flow
Free Cash Flow4.83M23.92M-1.71M-1.23M3.15M
Operating Cash Flow11.98M28.90M2.89M5.14M5.72M
Investing Cash Flow-12.94M7.43M-14.23M-6.37M-13.95M
Financing Cash Flow2.00M-38.44M14.28M2.04M5.29M

Acme United Technical Analysis

Technical Analysis Sentiment
Positive
Last Price43.63
Price Trends
50DMA
39.42
Positive
100DMA
38.97
Positive
200DMA
39.42
Positive
Market Momentum
MACD
0.99
Negative
RSI
70.62
Negative
STOCH
91.55
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 43.63 is above the 20-day moving average (MA) of 39.68, above the 50-day MA of 39.42, and above the 200-day MA of 39.42, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 70.62 is Negative, neither overbought nor oversold. The STOCH value of 91.55 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$749.72M6.057.45%-4.93%-23.61%
ACACU
67
Neutral
$165.39M17.819.68%1.47%2.56%-47.22%
65
Neutral
$10.77B15.805.51%1.90%3.03%-26.66%
EPEPC
64
Neutral
$1.16B14.375.53%2.44%-2.11%-28.79%
NUNUS
61
Neutral
$440.76M-4.93%2.69%-11.85%-1080.00%
SPSPB
58
Neutral
$1.39B27.062.79%3.23%1.46%-95.70%
NWNWL
49
Neutral
$2.44B-8.46%4.79%-6.09%17.71%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACU
Acme United
43.63
9.25
26.91%
HELE
Helen Of Troy
32.66
-56.35
-63.31%
NWL
Newell Brands
5.84
-0.07
-1.18%
NUS
Nu Skin
8.92
-1.57
-14.97%
SPB
Spectrum Brands Holdings
56.58
-25.81
-31.33%
EPC
Edgewell Personal Care
24.62
-14.06
-36.35%

Acme United Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Acme United Extends Credit Facility with HSBC
Positive
Jul 1, 2025

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.

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.Date of analysis: Jul 02, 2025