Enerpac Tool Group (EPAC)
NYSE:EPAC
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Enerpac Tool Group
(NYSE:EPAC)
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Rating:53Neutral
Price Target:
$35.00
▼(-1.99% Downside)
Action:ReiteratedDate:03/27/26
EPAC scores as mid-range primarily due to improved multi-year profitability and solid cash generation (despite inconsistent TTM data) and a constructive earnings call focused on maintaining free-cash-flow guidance and strong balance-sheet flexibility. These positives are tempered by weak technicals (broadly below key moving averages with negative MACD) and service-driven margin pressure, while valuation is mixed (high P/E but supported by a high dividend yield).
Positive Factors
Improved Profitability
The multi-year step-up in net and EBITDA margins reflects structural improvements in pricing, cost control and mix. Sustained higher margins expand internal funding for R&D, service investments and M&A, improving resiliency through industrial cycles and supporting durable shareholder returns.
Negative Factors
Service Revenue Decline
Service is typically recurring and higher-margin; a prolonged mid-teens decline reduces margin stability, recurring revenue and aftermarket attachment. Even with rightsizing, weaker service activity undermines long-term cash predictability and the installed-base revenue stream.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
The multi-year step-up in net and EBITDA margins reflects structural improvements in pricing, cost control and mix. Sustained higher margins expand internal funding for R&D, service investments and M&A, improving resiliency through industrial cycles and supporting durable shareholder returns.
Read all positive factors
Enerpac Tool Group (EPAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend Yield0.1%
Average Volume (3M)469.49K
Price to Earnings (P/E)32.8
Beta (1Y)0.98
Revenue Growth4.23%
EPS Growth-5.90%
CountryUS
Employees2,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.61
Shares Outstanding51,543,167
10 Day Avg. Volume775,022
30 Day Avg. Volume469,485
Financial Highlights & Ratios
PEG Ratio2.78
Price to Book (P/B)5.28
Price to Sales (P/S)3.71
P/FCF Ratio24.89
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue3.07
Enterprise Value/Gross Profit6.32
Enterprise Value/Ebitda13.37
Forecast
1Y Price Target
$51.00Price Target Upside42.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.9
Revenue Forecast (FY)$641.30M
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, Indus...
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 stre...
Enerpac Tool Group Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 25, 2026
Earnings Call Sentiment Neutral
The call presented a mix of solid product momentum, strong cash generation, robust liquidity and strategic wins (new product launches, a multi-year U.K. contract, and Cortland growth) that were offset by meaningful weakness in the service business leading to gross margin and adjusted EBITDA pressure, recent restructuring charges, and geopolitical uncertainty. Management emphasized cost discipline, restructuring to rightsize services (expected near-term savings), continued investment in innovation and M&A optionality, and maintained strong free cash flow guidance.Positive Updates
Product Sales Growth and Order Momentum
IT&S product sales grew 6% organically year-over-year (the highest products growth in 10 quarters). Overall second quarter revenue expanded 2% organically, with product order rates growing mid-single digits and gains in each geographic region.
Negative Updates
Service Revenue Weakness
IT&S service revenue declined 17% year-over-year in the quarter; EMEA service revenue fell 21% and Americas service declined 8%. Management expects full-year service contraction in the low- to mid-teens, weighing on overall growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Product Sales Growth and Order Momentum
IT&S product sales grew 6% organically year-over-year (the highest products growth in 10 quarters). Overall second quarter revenue expanded 2% organically, with product order rates growing mid-single digits and gains in each geographic region.
Read all positive updates
Company Guidance
Management narrowed fiscal 2026 guidance to net sales of $635.0M–$650.0M (organic growth 1%–3%), driven by mid-single-digit product growth offset by a low- to mid-teens decline in service; adjusted EBITDA guidance of $158.0M–$163.0M and adjusted EPS of $1.85–$1.92; free cash flow guidance held at $100.0M–$110.0M. They expect sequential gross margin improvement into Q3/Q4 after Q2 levels just north of ~46%, aim to maintain or improve adjusted SG&A (Q2 was 26.4% of revenue), and noted Q2 adjusted EBITDA margin of 21.3% (vs. 23.2% a year ago) with ~50 bps FX headwind. Balance sheet metrics remain strong: net debt $89.0M (net debt/adjusted EBITDA 0.6x), total liquidity $499.0M, YTD cash flow from operations $29.0M (vs. $16.0M prior year) and YTD free cash flow $23.0M (vs. $5.0M prior). Recent actions include a $3.3M restructuring (payback ~1 year), prior ~$6M restructuring in 2025 (~12-month payback), $51.0M of share repurchases in the quarter with ~$135.0M remaining under the $200.0M authorization.Enerpac Tool Group Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
49
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 625.19M | 616.90M | 589.51M | 598.20M | 571.22M | 528.66M |
| Gross Profit | 303.73M | 306.25M | 301.01M | 295.04M | 265.39M | 243.16M |
| EBITDA | 143.52M | 146.31M | 132.32M | 97.60M | 47.98M | 70.85M |
| Net Income | 85.56M | 92.75M | 85.75M | 46.56M | 15.69M | 38.08M |
Balance Sheet | ||||||
| Total Assets | 795.50M | 827.87M | 777.33M | 762.60M | 757.88M | 820.25M |
| Cash, Cash Equivalents and Short-Term Investments | 98.72M | 151.56M | 167.09M | 154.41M | 120.70M | 140.35M |
| Total Debt | 187.25M | 227.75M | 229.12M | 253.12M | 248.19M | 227.49M |
| Total Liabilities | 387.96M | 394.17M | 385.35M | 435.98M | 438.14M | 408.05M |
| Stockholders Equity | 407.54M | 433.69M | 391.98M | 326.62M | 319.75M | 412.20M |
Cash Flow | ||||||
| Free Cash Flow | 110.65M | 91.94M | 69.91M | 68.20M | 43.32M | 42.16M |
| Operating Cash Flow | 124.20M | 111.28M | 81.32M | 77.60M | 51.74M | 54.18M |
| Investing Cash Flow | -13.97M | -46.00M | -13.95M | 11.34M | -7.24M | 13.30M |
| Financing Cash Flow | -131.73M | -81.46M | -56.27M | -53.13M | -52.20M | -81.52M |
Enerpac Tool Group Technical Analysis
Negative
35.71
Price Trends
38.33
Negative
38.87
Negative
39.61
Negative
Market Momentum
-0.59
Negative
45.06
Neutral
20.82
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 35.71 is below the 20-day moving average (MA) of 35.94, below the 50-day MA of 38.33, and below the 200-day MA of 39.61, indicating a bearish trend. The MACD of -0.59 indicates Negative momentum. The RSI at 45.06 is Neutral, neither overbought nor oversold. The STOCH value of 20.82 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.99B | 16.64 | 11.42% | ― | 6.15% | 28.45% | |
71 Outperform | $1.63B | 20.46 | 81.27% | ― | 51.78% | 64.30% | |
69 Neutral | $3.01B | 11.46 | 7.68% | 0.57% | 18.33% | 61.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $1.80B | 32.79 | 20.01% | 0.10% | 4.23% | -5.90% | |
52 Neutral | $1.35B | -0.73 | -54.42% | ― | 6.66% | -39.72% |
* Industrials Sector Average
EPAC
Enerpac Tool Group
34.67
-7.34
-17.47%
ENOV
Enovis
23.34
-10.82
-31.67%
SXI
Standex International
251.52
94.25
59.93%
THR
Thermon Group Holdings
63.04
35.52
129.07%
PSIX
Power Solutions
67.78
39.96
143.64%
Enerpac Tool Group Corporate Events
Executive/Board ChangesShareholder Meetings
Enerpac Shareholders Back Board, Auditor and Executive Pay
Positive
Feb 5, 2026
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 ...
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.