Enerpac Tool Group (EPAC) AI Stock Analysis

• Market Cap: $1.91B
• Dividend Yield: 0.1%
• Average Volume (3M): 469.49K
• Price to Earnings (P/E): 25.8
• Beta (1Y): 1.02
• Revenue Growth: 3.91%
• EPS Growth: 1.48%
• Country: US
• Employees: 2,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.36
• Shares Outstanding: 52,776,306
• 10 Day Avg. Volume: 775,022
• 30 Day Avg. Volume: 469,485
• PEG Ratio: 2.78
• Price to Book (P/B): 5.28
• Price to Sales (P/S): 3.71
• P/FCF Ratio: 24.89
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 6.42
• Enterprise Value/Ebitda: 13.63
• 1Y Price Target: $51.00
• Price Target Upside: 40.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.92
• Revenue Forecast (FY): $637.88M

• Rating: 75 Outperform
• Price Target: $40.00 ▲(10.41% Upside)
• Action: Upgraded Date: 02/06/26
• Date: Action: Upgraded 02/06/26

The score is driven primarily by solid underlying profitability and strong cash flow, reinforced by constructive technical momentum. Earnings call commentary supports a stable outlook with improving growth expectations, while negative recent revenue growth and a mid-to-higher P/E multiple (partly offset by a high dividend yield) keep the score from ranking higher.

Positive Factors

Strong free cash flow generation

Sustained FCF growth (11.43% TTM) and strong operating cash conversion provide durable funding for R&D, capex, dividends, and M&A. Reliable cash generation reduces reliance on external financing and improves ability to navigate industrial cycles while funding strategic investments.

High gross margins

A >50% gross margin reflects pricing power and the high-value, engineered nature of Enerpac's product portfolio. Structural margin strength supports durable profitability, funds product development and geographic expansion, and provides a cushion against commodity or input cost pressures.

Improved leverage and ample liquidity

Low net leverage (net debt/EBITDA ~0.3), reduced debt-to-equity and sizeable liquidity give financial flexibility to sustain dividends, invest in innovation, pursue strategic acquisitions, and withstand cyclical downturns without compromising operations.

Negative Factors

Negative recent revenue trend

A TTM revenue decline of ~16% reduces scale, undermines the firm's ability to leverage fixed costs and grow aftermarket/recurring sales. Sustained top-line weakness can erode competitive positioning, limit reinvestment capacity, and pressure long-term EPS growth even with healthy margins.

Declining return on equity

ROE dropping from ~21% to ~9% signals weakened capital efficiency and lower returns for shareholders. Combined with a falling net margin, this suggests profit-generation versus equity has deteriorated, constraining internal funding for growth and making share‑holder value creation more challenging.

Service revenue weakness & tariff margin pressure

A decline in services—typically higher-margin and recurring—reduces revenue stability and aftermarket stickiness. Concurrent tariff-driven margin pressures compress profitability. Together these structural issues weaken long-term revenue visibility and make margins more vulnerable to external cost shocks.

Enerpac Tool Group Business Overview & Revenue Model

Company Description

Enerpac Tool Group Corp. manufactures and sells a range of industrial products and solutions in the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, Brazil, and internationally. It operates in two segments, Industrial Tools & Services (IT&S) and Other. The IT&S segment designs, manufactures, and distributes branded hydraulic and mechanical tools; and provides services and tool rentals to the infrastructure, industrial maintenance, repair and operations, oil and gas, mining, renewable energy, and construction markets. It also offers branded tools and engineered heavy lifting technology solutions, and hydraulic torque wrenches; maintenance and manpower services; high-force hydraulic and mechanical tools, including cylinders, pumps, valves, and specialty tools; and bolt tensioners and other miscellaneous products. This segment markets its branded tools and services primarily under the Enerpac, Hydratight, Larzep, and Simplex brands. The Other segment designs and manufactures synthetic ropes and biomedical textiles. The company was formerly known as Actuant Corporation and changed its name to Enerpac Tool Group Corp. in January 2020. Enerpac Tool Group Corp. was incorporated in 1910 and is headquartered in Menomonee Falls, Wisconsin.

How the Company Makes Money

Enerpac Tool Group primarily makes money by selling industrial tools, engineered systems, and related services used to safely lift, position, press, pull, torque, and tension large assets in industrial and infrastructure settings. Key revenue streams include: (1) Product sales: revenue from the sale of branded hydraulic tools and high-force solutions (e.g., cylinders, pumps, torque/tension tools, and lifting/positioning systems) sold to industrial end users and contractors for maintenance, turnaround, and capital projects. (2) Engineered/Systems solutions: revenue from more complex, higher-value system packages that combine multiple components and accessories and may be configured to specific application requirements, typically sold for large project work in sectors such as energy, infrastructure, and heavy industry. (3) Services and rentals: revenue from tool rental and service work (e.g., inspection, maintenance, repair, calibration, and on-site project support) that complements product sales and can create recurring demand tied to customer maintenance cycles and project schedules. (4) Aftermarket/consumables and parts: ongoing revenue from replacement parts, accessories, and service-related items that support the installed base of Enerpac tools and systems. The company’s earnings are influenced by industrial activity levels and project spending in end markets (maintenance turnarounds and capital projects) and by its route-to-market, which includes direct selling for larger accounts/projects and distribution/channel partners for broader coverage; specific partnership arrangements are null.

Enerpac Tool Group Financial Statement Overview

Summary

Strong profitability and cash generation (TTM gross margin >50% and solid free cash flow growth) support the score. Offsetting factors include negative TTM revenue growth (-16%) and a lower ROE versus the prior annual period, indicating softer growth and profitability momentum despite improved leverage.

Income Statement

Enerpac Tool Group shows a strong gross profit margin of over 50% in the TTM, indicating efficient cost management. However, the net profit margin has decreased to 13.27% from 15.03% in the previous annual report, reflecting some pressure on profitability. The revenue growth rate is negative at -16% in the TTM, which is a concern for future revenue generation. EBIT and EBITDA margins are healthy, but the decline in revenue growth needs attention.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM, dropping to 0.02 from 0.53, indicating a strong reduction in leverage. Return on equity has decreased to 8.87% from 21.39%, suggesting a decline in profitability relative to equity. The equity ratio remains stable, reflecting a balanced asset structure. Overall, the balance sheet shows improved leverage but reduced profitability.

Cash Flow

Enerpac Tool Group demonstrates robust cash flow management with a free cash flow growth rate of 11.43% in the TTM. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow to net income ratio remains high, suggesting good cash conversion. Overall, the cash flow position is strong, supporting operational and financial flexibility.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	615.91M	616.90M	589.51M	598.20M	571.22M	528.66M
Gross Profit	306.81M	306.25M	301.01M	295.04M	265.39M	243.16M
EBITDA	144.43M	146.31M	132.32M	97.60M	47.98M	70.85M
Net Income	90.16M	92.75M	85.75M	46.56M	15.69M	38.08M
Balance Sheet
Total Assets	818.06M	827.87M	777.33M	762.60M	757.88M	820.25M
Cash, Cash Equivalents and Short-Term Investments	139.05M	151.56M	167.09M	154.41M	120.70M	140.35M
Total Debt	188.46M	227.75M	229.12M	253.12M	248.19M	227.49M
Total Liabilities	387.01M	394.17M	385.35M	435.98M	438.14M	408.05M
Stockholders Equity	431.05M	433.69M	391.98M	326.62M	319.75M	412.20M
Cash Flow
Free Cash Flow	102.45M	91.94M	69.91M	68.20M	43.32M	42.16M
Operating Cash Flow	118.61M	111.28M	81.32M	77.60M	51.74M	54.18M
Investing Cash Flow	-16.57M	-46.00M	-13.95M	11.34M	-7.24M	13.30M
Financing Cash Flow	-92.17M	-81.46M	-56.27M	-53.13M	-52.20M	-81.52M

Enerpac Tool Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 36.23 is below the 20-day moving average (MA) of 39.56, below the 50-day MA of 40.41, and below the 200-day MA of 40.36, indicating a bearish trend. The MACD of -1.39 indicates Positive momentum. The RSI at 29.04 is Positive, neither overbought nor oversold. The STOCH value of 16.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPAC.

Enerpac Tool Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THR	82 Outperform	$1.58B	16.64	11.42%	―	3.08%	35.81%
EPAC	75 Outperform	$1.91B	25.78	21.10%	0.10%	3.91%	1.48%
SXI	68 Neutral	$3.10B	308.57	7.72%	0.57%	18.51%	-28.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PSIX	54 Neutral	$1.37B	11.54	81.27%	―	54.78%	122.61%
ENOV	52 Neutral	$1.33B	-0.73	-54.42%	―	11.57%	-1016.39%

Enerpac Tool Group Corporate Events

Enerpac Shareholders Back Board, Auditor and Executive Pay

At its February 4, 2026 annual meeting, Enerpac Tool Group shareholders elected eight directors, including CEO Paul E. Sternlieb, to serve until the next annual meeting, with each nominee receiving strong majority support. Investors also ratified Ernst & Young LLP as the company’s independent auditor for the fiscal year ending August 31, 2026, and approved, on an advisory basis, the compensation of the company’s named executive officers, signaling broad shareholder backing for the current board composition, governance practices, and executive pay framework.

The most recent analyst rating on (EPAC) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Enerpac Tool Group stock, see the EPAC Stock Forecast page.