Acme United Corporation. (ACU)
XASE:ACU
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Acme United
(NYSE MKT:ACU)
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Rating:58Neutral
Price Target:
$43.00
▲(16.06% Upside)
Action:Reiterated
Date:05/09/26
ACU scores as average: stable financial performance with improving but uneven cash conversion is offset by high valuation and weak technical momentum. The latest earnings call adds a balanced outlook—strong sales growth and margin-improvement initiatives, but notable near-term profitability and leverage pressure tied to tariffs, SG&A, and inventory actions.
Positive Factors
Direct-to-consumer capability via MyMedic acquisition
The MyMedic acquisition adds DTC marketing, social reach and ecommerce know-how that diversifies revenue channels. Over 2–6 months this supports higher-margin sales, cross-selling into existing lines, and a scalable customer-acquisition engine that can raise lifetime value and channel mix resilience.
Negative Factors
Rising leverage and higher net debt
Net debt has increased materially year-over-year, reflecting acquisitions and facility purchases. Elevated leverage reduces financial flexibility, heightens interest and refinancing risk, and constrains the company's ability to absorb shocks or pursue opportunistic investments if cash flow softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Direct-to-consumer capability via MyMedic acquisition
The MyMedic acquisition adds DTC marketing, social reach and ecommerce know-how that diversifies revenue channels. Over 2–6 months this supports higher-margin sales, cross-selling into existing lines, and a scalable customer-acquisition engine that can raise lifetime value and channel mix resilience.
Read all positive factors
Acme United (ACU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$161.52M
Dividend Yield1.48%
Average Volume (3M)9.50K
Price to Earnings (P/E)43.4
Beta (1Y)0.49
Revenue Growth3.78%
EPS Growth-7.26%
CountryUS
Employees633
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)2.51
Shares Outstanding3,810,359
10 Day Avg. Volume11,184
30 Day Avg. Volume9,501
Financial Highlights & Ratios
PEG Ratio-20.31
Price to Book (P/B)1.30
Price to Sales (P/S)0.78
P/FCF Ratio20.15
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda10.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.29
Revenue Forecast (FY)$218.81M
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...
How the Company Makes Money
Acme United makes money primarily by selling branded cutting, measuring, and first-aid products to retailers, wholesalers, and institutional/professional customers. Its core revenue streams come from (1) cutting and sharpening products (e.g., scis...
Acme United Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 17, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong top-line growth (14% overall, 6% ex-MyMedic), solid regional performances (Europe and Canada), strategic progress on acquisitions, facility moves, and automation that support long-term growth. However, near-term profitability and cash/ leverage were materially impacted by tariff-related cost realization, elevated inventory purchases (~$10M), higher SG&A tied to the direct-to-consumer MyMedic rollout, and remediation spending (~$1.25M) following an FDA inspection. Management expects tariff effects to moderate over the coming quarters and highlighted multiple initiatives that should improve margins and sales over time, leaving the situation balanced between meaningful operational progress and short-term financial headwinds.Positive Updates
Top-line Revenue Growth
Net sales increased 14% year-over-year to $52.3 million in Q1 FY2026 versus $46.0 million a year ago. Revenues excluding MyMedic increased 6%.
Negative Updates
Profitability Decline — Net Income and EPS Fall
Net income declined roughly 40% year-over-year to $985,000 ($0.24 per diluted share) versus $1.6M ($0.41) last year (CFO reported $1.0M vs $1.7M and a 40% decline). The drop was driven primarily by tariff-related costs and other incremental expenses.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line Revenue Growth
Net sales increased 14% year-over-year to $52.3 million in Q1 FY2026 versus $46.0 million a year ago. Revenues excluding MyMedic increased 6%.
Read all positive updates
Company Guidance
Guidance from the call was that the tariff headwinds that pressured core gross margins (gross margin 39.7% vs 39% last year; legacy margins down ~200 bps) should gradually abate over the next three quarters after tariff rate declines in November 2025 and February 2026, with management expecting high‑cost inventory to be run through in Q2 and a return to more normal margin levels by Q3; company-level metrics cited: Q1 net sales $52.3M (up 14%, ~8% from MyMedic and +6% ex‑MyMedic), U.S. sales +12%, Europe +19% (to €4M), Canada up ~11–16%, net income about $1.0M ($0.24 EPS vs $0.41 prior, a ~40% decline), SG&A $19.0M (36% of sales) with a target near 33% for the full year, incremental inventory purchased ~$10M, QA/upgrades ~$1.25–1.3M to date (three‑quarters complete), net debt $38.6M (vs $27.2M year‑ago), free cash flow ~$14.2M before the $6M Tennessee facility purchase, and planned CapEx of roughly $7M (plus ongoing automation investments such as a ~$500k Spill Magic project).Acme United Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 202.88M | 196.54M | 194.49M | 191.50M | 193.96M | 182.09M |
| Gross Profit | 80.28M | 77.41M | 76.35M | 72.21M | 63.56M | 64.80M |
| EBITDA | 20.69M | 21.02M | 20.44M | 30.90M | 10.59M | 20.30M |
| Net Income | 9.52M | 10.19M | 10.02M | 17.79M | 3.03M | 13.66M |
Balance Sheet | ||||||
| Total Assets | 195.24M | 171.00M | 162.17M | 149.24M | 164.38M | 144.44M |
| Cash, Cash Equivalents and Short-Term Investments | 4.20M | 3.60M | 6.40M | 4.80M | 6.10M | 4.84M |
| Total Debt | 49.40M | 28.26M | 32.84M | 25.51M | 63.42M | 47.48M |
| Total Liabilities | 78.52M | 53.39M | 55.19M | 51.34M | 85.35M | 67.36M |
| Stockholders Equity | 116.73M | 117.61M | 106.98M | 97.90M | 79.03M | 77.08M |
Cash Flow | ||||||
| Free Cash Flow | 8.15M | 7.58M | 4.83M | 23.92M | -1.71M | -1.23M |
| Operating Cash Flow | 19.33M | 18.23M | 11.98M | 28.90M | 2.89M | 5.14M |
| Investing Cash Flow | -27.25M | -12.30M | -12.94M | 7.43M | -14.23M | -6.37M |
| Financing Cash Flow | 8.53M | -8.88M | 2.00M | -38.44M | 14.28M | 2.04M |
Acme United Technical Analysis
Positive
37.05
Price Trends
43.44
Negative
43.20
Positive
41.30
Positive
Market Momentum
-0.40
Negative
54.67
Neutral
86.26
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 37.05 is below the 20-day moving average (MA) of 41.65, below the 50-day MA of 43.44, and below the 200-day MA of 41.30, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 86.26 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 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $161.52M | 43.41 | 8.21% | 1.48% | 3.78% | -7.26% | |
54 Neutral | $283.54M | 47.78 | 6.84% | 2.39% | -14.17% | ― | |
51 Neutral | $96.06M | -21.87 | 10.50% | ― | 5.76% | -73.80% | |
47 Neutral | $780.62M | -23.40 | -5.14% | 3.51% | -5.30% | -196.78% | |
45 Neutral | $87.80M | -4.31 | -9.41% | ― | -8.16% | 85.14% |
* Consumer Defensive Sector Average
ACU
Acme United
43.21
5.17
13.60%
NUS
Nu Skin
5.91
-1.23
-17.22%
EPC
Edgewell Personal Care
17.38
-8.99
-34.09%
SLSN
Solesence
1.26
-2.61
-67.44%
SKIN
Beauty Health
0.66
-1.07
-61.91%
Acme United Corporate Events
Executive/Board ChangesShareholder Meetings
Acme United Shareholders Back Board, Governance and Compensation
Positive
Apr 28, 2026
At Acme United’s 2026 Annual Meeting of Shareholders held on April 27, 2026, shareholders elected all nominated directors, with Walter C. Johnsen, Richmond Y. Holden, Brian S. Olschan, Susan H. Murphy, Rex L. Davidson, Brian K. Barker and Pa...
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.