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Enerpac Tool Group (EPAC)
NYSE:EPAC
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Enerpac Tool Group
(NYSE:EPAC)
74Outperform
Enerpac Tool Group (EPAC) vs. S&P 500 (SPY)
Market Cap
$2.51B
Dividend Yield0.09%
Average Volume (3M)376.78K
Price to Earnings (P/E)26.9
Beta (1Y)0.74
Revenue Growth0.43%
EPS Growth34.59%
CountryUS
Employees2,000
SectorIndustrials
Sector Strength67
IndustryIndustrial Goods
Share Statistics
EPS (TTM)1.69
Shares Outstanding54,084,915
10 Day Avg. Volume438,980
30 Day Avg. Volume376,783
Financial Highlights & Ratios
PEG Ratio0.78
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
$53.00Price Target Upside14.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Enerpac Tool Group Business Overview & Revenue Model
Company DescriptionEnerpac Tool Group (EPAC) is a premier industrial tools and services company that specializes in the design, manufacturing, and distribution of high-force tools and equipment. Serving a diverse range of sectors including industrial, construction, and infrastructure, Enerpac offers a comprehensive suite of products such as hydraulic tools, heavy lifting technology, and bolting equipment. The company is known for its innovation, quality, and reliability, providing solutions that enhance safety and productivity in demanding environments.
How the Company Makes MoneyEnerpac Tool Group makes money primarily through the sale of its high-force industrial tools and equipment. The company's revenue model is based on product sales across various industry sectors, including oil and gas, mining, construction, and manufacturing. Key revenue streams include direct sales to customers, distribution through a network of dealers and distributors, and the provision of specialized services such as equipment rentals, maintenance, and repair services. Significant partnerships with distributors and strategic alliances with key industry players also contribute to its earnings, enhancing market reach and customer access. Additionally, Enerpac invests in research and development to drive product innovation, which supports premium pricing and customer loyalty.
Enerpac Tool Group Financial Statement Overview
Summary
Enerpac Tool Group is financially sound, with strong revenue growth and profitability improvements evident across its income statement. The balance sheet reflects a stable financial foundation, supported by prudent leverage and equity management. Cash flows are robust, underpinning the company's operational success and strategic investments. While there are minor areas for enhancement, the overall financial health of Enerpac is commendable, positioning it well within the Industrial Goods sector.Income Statement
Enerpac Tool Group has demonstrated solid financial performance with a consistent revenue growth trajectory, especially noticeable in the recent TTM period. Gross profit margins have remained robust, showcasing strong operational efficiency. The company has successfully improved its net profit margin, indicating effective cost management and a positive bottom line. Nevertheless, there is room for improvement in EBIT and EBITDA margins, although they are relatively stable.85
Very Positive
Balance Sheet
The balance sheet of Enerpac Tool Group displays a healthy equity position, with a favorable equity ratio indicating financial stability. The debt-to-equity ratio is moderate, reflecting a balanced approach to leverage. Return on equity has improved, driven by increased net income, yet there remains potential to optimize further. The company has maintained adequate liquidity, evident from its consistent cash reserves.75
Positive
Cash Flow
The cash flow statements highlight strong operating cash flow, which has consistently supported positive free cash flow. Enerpac Tool Group has effectively managed its capital expenditures, leading to healthy free cash flow growth. The ratios of operating and free cash flow to net income suggest efficient cash generation relative to earnings. However, fluctuations in financing cash flow call for cautious monitoring of capital structure adjustments.80
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 600.79M | 589.51M | 598.20M | 571.22M | 528.66M | 493.29M | Gross Profit |
| 301.38M | 301.01M | 295.04M | 265.39M | 243.16M | 217.19M | EBIT |
| 100.28M | 121.59M | 83.92M | 30.66M | 51.11M | 24.18M | EBITDA |
| 112.90M | 132.32M | 97.60M | 47.98M | 70.85M | 48.59M | Net Income Common Stockholders |
| 64.10M | 85.75M | 46.56M | 15.69M | 38.08M | 5.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 130.73M | 167.09M | 154.41M | 120.70M | 140.35M | 152.17M | Total Assets |
| 775.35M | 777.33M | 762.60M | 757.88M | 820.25M | 824.29M | Total Debt |
| 193.29M | 194.50M | 214.09M | 204.00M | 175.00M | 255.00M | Net Debt |
| 62.56M | 27.41M | 59.67M | 83.30M | 34.65M | 102.83M | Total Liabilities |
| 377.34M | 385.35M | 435.98M | 438.14M | 408.05M | 465.07M | Stockholders Equity |
| 398.01M | 391.98M | 326.62M | 319.75M | 412.20M | 359.23M |
| Cash Flow | Free Cash Flow | ||||
| 45.46M | 69.91M | 68.20M | 43.32M | 42.16M | -16.63M | Operating Cash Flow |
| 53.40M | 81.32M | 77.60M | 51.74M | 54.18M | -3.16M | Investing Cash Flow |
| 11.28M | -13.95M | 11.34M | -7.24M | 13.30M | 176.07M | Financing Cash Flow |
| -45.13M | -56.27M | -53.13M | -52.20M | -81.52M | -238.93M |
Enerpac Tool Group Technical Analysis
Positive
46.22
Price Trends
44.77
Positive
45.46
Positive
42.96
Positive
Market Momentum
-0.13
Negative
53.90
Neutral
69.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPAC, the sentiment is Positive. The current price of 46.22 is above the 20-day moving average (MA) of 44.38, above the 50-day MA of 44.77, and above the 200-day MA of 42.96, indicating a bullish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 69.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.91B | 21.91 | 19.60% | 0.92% | 10.59% | 27.04% | |
77 Outperform | $24.55B | 9.37 | 24.30% | 1.13% | -2.99% | 159.26% | |
74 Outperform | $2.51B | 26.89 | 23.87% | 0.09% | 0.43% | 34.59% | |
74 Outperform | $82.09B | 26.95 | 25.87% | 1.02% | 0.41% | 19.76% | |
65 Neutral | $1.70B | 18.14 | 7.67% | 3.63% | -2.46% | -19.05% | |
63 Neutral | $9.60B | 18.56 | 28.63% | 1.96% | -0.90% | -1.69% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% |
* Industrials Sector Average
Performance Comparison
EPAC
Enerpac Tool Group
44.80
9.33
26.30%
DOV
Dover
179.15
5.50
3.17%
ITT
ITT
128.71
-4.07
-3.07%
KMT
Kennametal
21.62
-2.00
-8.47%
PH
Parker Hannifin
626.26
80.97
14.85%
AOS
A. O. Smith Corporation
66.90
-20.66
-23.60%
Enerpac Tool Group Earnings Call Summary
Earnings Call Date: Mar 24, 2025 | % Change Since: 6.55% | 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.