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Acme United Corporation. (ACU)
:ACU
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Acme United (ACU) AI Stock Analysis

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ACU

Acme United

(NYSE MKT:ACU)

Rating:77Outperform
Price Target:
$49.00
▲(13.22%Upside)
Acme United's stock is rated strong, driven by robust financial performance and effective management of challenges such as high tariffs. The technical indicators point to a stable momentum, while valuation metrics suggest the stock is fairly priced. The positive earnings call and strategic corporate event further support the company's growth prospects, though monitoring of tariff impacts is necessary.

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

Acme United Business Overview & Revenue Model

Company DescriptionAcme 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 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:Jul 23, 2025
(Q2-2025)
|
% Change Since: 3.91%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
Acme United Corporation's second quarter was characterized by record earnings and strong cash flow management, despite facing significant challenges from high tariffs that impacted sales, particularly in the U.S. and Europe. The company managed to offset some of these challenges through strategic inventory management, facility expansion, and maintaining a strong dividend outlook.
Q2-2025 Updates
Positive Updates
Record Earnings Achieved
Acme United set a quarterly record for earnings with net income of $4.8 million, an increase from $4.5 million in the previous year, and EPS of $1.16 versus $1.09.
Strong Cash Flow and Debt Reduction
The company generated approximately $12 million in free cash flow and reduced bank debt to $23 million from $33 million a year ago.
Growth in Canadian Market
Net sales in local currency for Canada increased 28% in the quarter and 21% for the year-to-date, mainly due to higher sales of first aid products.
Expansion of Production Facilities
Acme purchased a new facility for Spill Magic in Mount Pleasant, Tennessee, for approximately $6 million, which will start production in Q1 2026, allowing for future expansion.
Continued Dividend Payout
The company raised its dividend and expressed confidence in maintaining it, supported by strong cash flow and reduced debt.
Negative Updates
Impact of High Tariffs on Sales
Net sales decreased by 3% due to cancellations and delays resulting from exceptionally high tariffs of 145% on Chinese imports, affecting customer orders.
Sales Decline in U.S. and Europe
Net sales in the U.S. segment decreased 6% in the second quarter, while sales in Europe decreased 6% in local currency due to the timing of shipments.
Challenges in Westcott Cutting Tools Segment
The Westcott cutting tools segment was more significantly impacted by order cancellations due to tariffs, affecting back-to-school sales.
Company Guidance
During the Acme United Corporation's second quarter 2025 earnings call, the company reported a net sales decrease to $54 million from $55.4 million in the prior year, marking a 3% decline, largely due to the impact of high tariffs on imported goods. Despite these challenges, net income rose by 7% to $4.8 million, with earnings per share increasing to $1.16 from $1.09. The company navigated the tariff disruptions by leveraging its diversified supply chain and shifting production to locations like Malaysia and Vietnam, while its U.S. factories, such as Med-Nap in Florida, benefited from the situation by producing at record levels. SG&A expenses were reduced slightly, and the gross margin remained at 41%. The company generated approximately $12 million in free cash flow over the past 12 months, which facilitated a reduction in bank debt to $23 million from $33 million the previous year. Acme United anticipates growth and increased market share in the upcoming quarters, particularly in the Westcott cutting tools and first aid business sectors.

Acme United Financial Statement Overview

Summary
Acme United demonstrates strong financial health with robust profitability and efficient balance sheet management. The stability in revenue and margins signifies a well-managed operation, despite the need to monitor increasing debt levels. The company's financials position it well for sustained performance and growth.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
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 Liabilities58.72M54.72M87.05M68.67M68.60M
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 Price43.28
Price Trends
50DMA
40.50
Positive
100DMA
39.78
Positive
200DMA
39.52
Positive
Market Momentum
MACD
0.70
Positive
RSI
59.17
Neutral
STOCH
79.43
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 43.28 is above the 20-day moving average (MA) of 42.62, above the 50-day MA of 40.50, and above the 200-day MA of 39.52, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 59.17 is Neutral, neither overbought nor oversold. The STOCH value of 79.43 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 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
77
Outperform
$164.06M17.179.50%1.41%0.70%-48.75%
69
Neutral
$1.27B15.765.53%2.22%-2.11%-28.79%
65
Neutral
$11.18B15.795.49%1.92%3.14%-24.90%
60
Neutral
$2.62B-8.46%4.47%-6.09%17.71%
58
Neutral
$432.36M-4.93%2.74%-11.85%-1080.00%
57
Neutral
$1.48B28.822.79%3.04%1.46%-95.70%
44
Neutral
$553.45M5.74-23.99%-4.39%-326.42%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACU
Acme United
43.28
-1.14
-2.57%
HELE
Helen Of Troy
24.11
-36.51
-60.23%
NWL
Newell Brands
6.27
-2.18
-25.80%
NUS
Nu Skin
8.75
-1.69
-16.19%
SPB
Spectrum Brands Holdings
60.27
-23.87
-28.37%
EPC
Edgewell Personal Care
27.00
-12.40
-31.47%

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 24, 2025