Enerpac Tool Group (EPAC) AI Stock Analysis

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Enerpac Tool Group

(NYSE:EPAC)

74Outperform

Enerpac Tool Group scores a 74, reflecting its strong financial performance and positive earnings outlook. Despite challenges like declining margins and regional sales declines, the company maintains solid operational efficiency and strategic investment potential. Valuation concerns and technical indicators suggest a balanced approach, with growth prospects hinging on successful execution of strategic initiatives and market conditions.

Enerpac Tool Group (EPAC) vs. S&P 500 (SPY)

Market Cap

$2.09B

Dividend Yield0.1%

Average Volume (3M)404.38K

Price to Earnings (P/E)22.9

Beta (1Y)0.81

Revenue Growth0.43%

EPS Growth34.59%

CountryUS

Employees2,000

SectorIndustrials

Sector Strength69

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)1.69

Shares Outstanding54,084,915

10 Day Avg. Volume420,959

30 Day Avg. Volume404,381

Financial Highlights & Ratios

PEG Ratio0.66

Price to Book (P/B)N/A

Price to Sales (P/S)3.88

Price to Cash Flow (P/CF)66.40

P/FCF Ratio53.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$53.00

Price Target Upside37.66% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Enerpac Tool Group Business Overview & Revenue Model

Company DescriptionEnerpac Tool Group (EPAC) is a global leader in high-pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads. The company serves a wide range of sectors, including industrial, infrastructure, construction, and energy. Enerpac's core products include hydraulic cylinders, pumps, valves, jacks, and other specialized tools designed to enhance productivity and ensure safety in critical applications.

How the Company Makes MoneyEnerpac Tool Group makes money primarily through the sale of its high-performance industrial tools and solutions. The company's revenue streams include direct sales of hydraulic tools and equipment to end-users across various industries, as well as sales through a network of distributors and dealers. Enerpac also generates income through service and maintenance contracts, ensuring their products operate efficiently over time. Additionally, the company may engage in strategic partnerships or collaborations that expand its market reach or enhance its product offerings. Key factors contributing to Enerpac's earnings include its strong brand reputation, innovation in product design, and a global sales network that allows it to access diverse markets.

Enerpac Tool Group Financial Statement Overview

Summary

Enerpac Tool Group showcases robust financial performance with solid revenue growth, high profitability margins, and a stable balance sheet. Low leverage and strong returns on equity further highlight financial health. Consistent cash flow generation supports ongoing operations and investment potential.

Income Statement

Very Positive

Enerpac Tool Group demonstrates strong financial performance with steady revenue growth and improving profitability. The Gross Profit Margin stands at 50.43%, showcasing efficient cost management. The Net Profit Margin of 15.47% indicates solid profitability. The Revenue Growth Rate of 1.75% TTM highlights consistent expansion. Additionally, the EBIT Margin of 21.16% and EBITDA Margin of 21.82% further underscore the company's robust operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.01, indicating low leverage. The Return on Equity (ROE) at 22.87% signals effective utilization of shareholder funds for generating profits. The Equity Ratio of 52.27% suggests a solid equity base, providing stability. However, maintaining this balance is crucial to ensure continued financial health.

Cash Flow

Positive

Enerpac Tool Group's cash flow statement reveals healthy cash generation. The Free Cash Flow Growth Rate of 1.56% indicates consistent cash flow improvement. The Operating Cash Flow to Net Income Ratio of 0.98 reflects efficient cash flow operations relative to net income, while the Free Cash Flow to Net Income Ratio of 0.77 suggests strong free cash flow generation, supporting future investments and debt repayments.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
599.83M	589.51M	598.20M	571.22M	528.66M	493.29M
	Gross Profit
302.54M	301.01M	295.04M	265.39M	243.16M	217.19M
	EBIT
126.95M	121.59M	83.92M	30.66M	51.11M	24.18M
	EBITDA
133.59M	132.32M	97.60M	47.98M	70.85M	48.59M
	Net Income Common Stockholders
92.82M	85.75M	46.56M	15.69M	38.08M	5.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.51M	167.09M	154.41M	120.70M	140.35M	152.17M
	Total Assets
776.63M	777.33M	762.60M	757.88M	820.25M	824.29M
	Total Debt
5.00M	194.50M	214.09M	204.00M	175.00M	255.00M
	Net Debt
-114.51M	27.41M	59.67M	83.30M	34.65M	102.83M
	Total Liabilities
370.65M	385.35M	435.98M	438.14M	408.05M	465.07M
	Stockholders Equity
405.98M	391.98M	326.62M	319.75M	412.20M	359.23M
Cash Flow		Free Cash Flow
71.00M	69.91M	68.20M	43.32M	42.16M	-16.63M
	Operating Cash Flow
90.78M	81.32M	77.60M	51.74M	54.18M	-3.16M
	Investing Cash Flow
-46.97M	-13.95M	11.34M	-7.24M	13.30M	176.07M
	Financing Cash Flow
-79.59M	-56.27M	-53.13M	-52.20M	-81.52M	-238.93M

Enerpac Tool Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price38.50

Price Trends

50DMA

43.86

Negative

100DMA

44.44

Negative

200DMA

43.23

Negative

Market Momentum

MACD

-1.52

Positive

RSI

37.90

Neutral

STOCH

38.72

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPAC, the sentiment is Negative. The current price of 38.5 is below the 20-day moving average (MA) of 42.07, below the 50-day MA of 43.86, and below the 200-day MA of 43.23, indicating a bearish trend. The MACD of -1.52 indicates Positive momentum. The RSI at 37.90 is Neutral, neither overbought nor oversold. The STOCH value of 38.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPAC.

Enerpac Tool Group Risk Analysis

Enerpac Tool Group disclosed 35 risk factors in its most recent earnings report. Enerpac Tool Group 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

Enerpac Tool Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPAC	74 Outperform	$2.09B	22.85	23.87%	0.10%	0.43%	34.59%
TNC	69 Neutral	$1.34B	16.21	13.98%	1.65%	3.47%	-24.70%
SXI	68 Neutral	$1.62B	29.65	8.57%	0.91%	-2.46%	-60.60%
Sector *	63 Neutral	$4.29B	11.05	5.73%	232.30%	4.75%	-5.69%
CXT	62 Neutral	$2.56B	13.88	18.15%	1.47%	-21.96%	-27.05%
HI	51 Neutral	$1.47B	―	-14.61%	4.28%	5.88%	-324.10%
ENOV	46 Neutral	$1.78B	―	-27.69%	―	23.46%	-1552.75%

* Industrials Sector Average

Performance Comparison

EPAC

Enerpac Tool Group

38.50

3.51

10.03%

ENOV

Enovis

31.96

-23.87

-42.75%

CXT

Crane NXT

44.66

-16.00

-26.38%

Hillenbrand

20.58

-26.04

-55.86%

SXI

Standex International

136.23

-30.18

-18.14%

TNC

Tennant Co

69.99

-43.49

-38.32%

Enerpac Tool Group Earnings Call Summary

Earnings Call Date: Mar 24, 2025 | % Change Since: -11.25% | Next Earnings Date: Jul 1, 2025

Earnings Call Sentiment Neutral

Enerpac Tool Group's earnings call for Q2 fiscal 2025 presented a mixed sentiment with notable revenue growth and successful product launches balancing out the challenges of declining margins and regional sales declines, particularly in EMEA. The company's strong balance sheet and positive future outlook provide a foundation for continued growth.

Highlights

Revenue Growth

Enerpac's revenue increased 5.1% on a reported basis and 5% on an organic basis in Q2 2025, indicating strong performance despite a soft industrial sector.

Cortland Biomedical Growth

Cortland Biomedical posted a growth of 33%, driven by improved comparisons with a year-ago period impacted by shipment delays.

Geographic Expansion

High single-digit growth in the Americas and APAC regions, with the ECX program contributing to share gains.

Earnings Per Share Increase

Adjusted earnings per share were $0.39, an 8% increase from the previous year.

Strong Balance Sheet

Net debt was $73 million with a net debt to adjusted EBITDA ratio of 0.5, and total liquidity of $518 million.

Successful Product Launches

Positive reception of new products launched under the revamped innovation program, with further expansions expected in 2025 and 2026.

E-commerce Growth

E-commerce revenue increased by 43% year-over-year in Q2 and 36% in the first half of fiscal 2025.

Lowlights

Gross Margin Decline

Gross profit margins declined by 110 basis points year-over-year to 50.5% due to a mix shift towards lower-margin products and services.

EMEA Region Sales Decline

A low single-digit decline in sales in the EMEA region, breaking a two-year pattern of consistent growth.

Adjusted EBITDA Margin Decline

Adjusted EBITDA margins declined by 160 basis points in the second quarter due to mix impacts and the inclusion of the DTA acquisition.

Australia Market Weakness

Continued weakness in Australia attributed to cost pressures in the mining sector and the impact of tariffs on steel and aluminum.

Company Guidance

During Enerpac Tool Group's Second Quarter Fiscal 2025 earnings call, the company reported a 5% organic sales growth year-over-year, despite a soft industrial sector. EBITDA margins were at 23.2%, slightly down from the previous year due to mix impacts. Revenue increased by 5.1% on a reported basis, with organic revenue growth noted at 4% in the IT&S business segment. Cortland Biomedical saw a significant 33% growth, attributed to previous shipment delays. Regional performance highlighted high single-digit growth in the Americas and APAC, although EMEA experienced a low single-digit decline. Gross profit margins decreased by 110 basis points to 50.5%, influenced by a higher growth mix in the HLT business and service projects. Adjusted SG&A improved to 28.3% of revenue. The company maintained its full-year cash flow guidance between $85 million to $95 million, and the effective tax rate normalized to 24.3%. Adjusted earnings per share rose by 8% to $0.39. Enerpac repurchased 220,000 shares for $10.2 million and reported strong liquidity with a net debt of $73 million and a net debt to adjusted EBITDA ratio of 0.5. Looking ahead, Enerpac plans to leverage its innovation pipeline, continue integrating its recent DTA acquisition, and invest in internal growth and strategic M&A opportunities.

Enerpac Tool Group Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance

Enerpac Tool Group Updates Performance Share Agreements

Neutral

Jan 23, 2025

Enerpac Tool Group corrected an error in their filed Performance Share Award Agreements under their 2017 Omnibus Incentive Plan, applicable to awards starting in 2024. The revised agreements now include double-trigger provisions for vesting upon a change in control, enhancing the conditions for performance share awards.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.