Enerpac Tool Group (EPAC) AI Stock Analysis

• Market Cap: $2.23B
• Dividend Yield: 0.1%
• Average Volume (3M): 469.49K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.97
• 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: 1.00
• Enterprise Value/Revenue: 3.61
• Enterprise Value/Gross Profit: 7.24
• Enterprise Value/Ebitda: 15.39
• 1Y Price Target: $51.00
• Price Target Upside: 24.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $47.00 ▲(14.58% 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

High Gross Margin

A gross margin above 50% reflects strong product pricing and cost structure in specialized hydraulic tools. This structural margin advantage supports durable EBITDA margins and cash generation, enabling reinvestment in R&D and funding for strategic initiatives over the medium term.

Strong Cash Generation

Consistent free cash flow growth and high cash conversion indicate robust operational cash generation. This provides lasting financial flexibility to fund R&D, capex, dividends, and M&A without relying on external financing, improving resilience through industry cycles.

Improved Leverage & Liquidity

A materially reduced leverage profile and strong stated liquidity materially improve financial flexibility. Low net debt and ample liquidity lower bankruptcy risk, support funding of product launches and geographic expansion, and enable opportunistic capital deployment.

Negative Factors

Declining Revenue

A 16% TTM revenue decline signals structural demand or market-share pressure that can erode scale economics. Sustained top-line weakness reduces leverage on fixed costs, constrains margin expansion, and makes achieving steady long-term growth targets more challenging without clear market recovery.

Service Revenue Weakness

A meaningful drop in service revenue undermines recurring, higher-margin aftermarket income that stabilizes earnings. Losing service volume—partly from passing on lower-margin work—reduces annuity-like cash flows and weakens long-term customer lock-in and margin sustainability.

Lower Return on Equity

A sharp fall in ROE reflects declining effectiveness in generating returns from equity capital. Even with low leverage, weaker ROE signals profitability pressures or capital allocation limits that can constrain long-term shareholder value creation and make it harder to justify reinvestment levels.

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 generates revenue primarily through the sale of its hydraulic tools and equipment, which are essential for heavy lifting and industrial applications. The company has multiple revenue streams, including direct sales to end-users, distribution partnerships, and service contracts for maintenance and support. Additionally, Enerpac benefits from its global presence and established relationships with key industries, allowing it to leverage demand in sectors such as construction and energy. The company also invests in research and development to innovate and expand its product offerings, contributing to its long-term profitability.

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: Positive
• Last Price: 41.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 41.02 is below the 20-day moving average (MA) of 41.63, above the 50-day MA of 40.49, and above the 200-day MA of 40.77, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 33.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EPAC.

Enerpac Tool Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THR	78 Outperform	$1.66B	28.86	11.45%	―	3.08%	35.81%
EPAC	75 Outperform	$2.23B	25.31	21.75%	0.10%	3.91%	1.48%
SXI	68 Neutral	$3.08B	56.84	7.72%	0.57%	18.51%	-28.69%
PSIX	65 Neutral	$2.08B	16.13	118.50%	―	54.78%	122.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENOV	49 Neutral	$1.26B	-0.92	-51.11%	―	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.

Enerpac Tool Group Announces Trading Blackout Period

On December 15, 2025, Enerpac Tool Group Corp. notified its directors and executive officers about a trading blackout period due to changes in the company’s 401(k) Plan. The blackout, from December 31, 2025, to January 13, 2026, is to eliminate the Company Stock Fund as an investment option, affecting the ability to make investment changes and restricting transactions involving the company’s equity securities.

The most recent analyst rating on (EPAC) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Enerpac Tool Group stock, see the EPAC Stock Forecast page.