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Enerpac Tool Group
(NYSE:EPAC)
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Rating:76Outperform
Price Target:
$38.00
▲(6.41% Upside)
Action:Reiterated
Date:07/10/26
The score is driven primarily by strong financial performance (high margins, attractive ROE, solid free cash flow and low current debt). Valuation is supportive given the moderate P/E and very high dividend yield. The latest earnings call is a net positive due to cash generation and a strategically expanding acquisition, but tempered by reduced organic growth guidance, one-time EPS benefit, and planned leverage increase. Technicals are the main drag, as the stock trades below key moving averages despite mildly positive momentum indicators.
Positive Factors
High Profitability
Sustained high gross and operating margins indicate durable pricing power, engineered-product differentiation and operational leverage in industrial tools. This margin profile supports internal investment, dividends and buybacks, and provides a cushion through cyclical downturns over the next 2–6 months.
Negative Factors
Weak Organic Growth Outlook
Management's reduced organic growth guidance signals softer end-market demand and limited near-term top-line momentum absent M&A. Reliance on acquisitions to expand SAM raises execution risk and means revenue growth may remain muted through multiple quarters if integration or market recovery lags.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high gross and operating margins indicate durable pricing power, engineered-product differentiation and operational leverage in industrial tools. This margin profile supports internal investment, dividends and buybacks, and provides a cushion through cyclical downturns over the next 2–6 months.
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)19.7
Beta (1Y)0.95
Revenue Growth4.27%
EPS Growth8.45%
CountryUS
Employees2,100
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.78
Shares Outstanding51,137,646
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 Cap1.09
Enterprise Value/Revenue3.09
Enterprise Value/Gross Profit6.30
Enterprise Value/Ebitda12.99
Forecast
1Y Price Target
$50.00Price Target Upside40.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.87
Revenue Forecast (FY)$639.73M
Enerpac Tool Group Business Overview & Revenue Model
Company Description
Enerpac Tool Group Corp. is a global enterprise specializing in the production and distribution of a diverse array of industrial products and solutions. Its operations span multiple key international markets, including the United States, the Unite...
How the Company Makes Money
EPAC primarily makes money by selling industrial tools and related solutions to customers performing heavy maintenance, construction, and industrial assembly work. Its core revenue stream is product sales, including high-pressure hydraulic cylinde...
Enerpac Tool Group Earnings Call Summary
Earnings Call Date:Jul 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call presented a largely positive strategic and operational story: Enerpac delivered organic product growth (+5% product, +10% product in Americas), strong cash generation (YTD operating cash flow $69M; free cash flow up to $60M), continued innovation (8 new products YTD; on track for 10), and announced a strategic acquisition (SFE Group) that expands the addressable market by ~$1B and is expected to be accretive over time. Offsetting these positives are meaningful near-term headwinds from the protracted Middle East conflict that delayed service revenue (services -8% YoY, a $3M known project delay), a one-time $6M tariff recovery that boosted Q3 EPS by $0.08, a temporary rise in leverage to ~2.8x at close, and a reduction in full-year organic growth guidance to 1%–2%. Management expects to deleverage within 12 months and to capture modest synergies over time. Overall, the strategic acquisition, solid product growth, strong cash flow and continued capital returns outweigh the regional/service headwinds and one-time effects, but investors should note near-term margin and guidance pressure tied to external geopolitical impacts.Positive Updates
Strategic Acquisition of SFE Group
Signed definitive agreement to acquire SFE Group for approximately $472 million. SFE reported trailing 12-month sales of ~$170 million and adjusted EBITDA of ~$44 million, implying a 10.6x trailing adjusted EBITDA multiple. Transaction expands Enerpac's SAM by ~$1.0 billion (from ~$4.5B to ~$5.5B), brings complementary product categories (pipe beveling/on-site machining, orbital welding/cutting, tools & lifting) and a seasoned management team, and targets close in Q1 fiscal 2027 (subject to approvals).
Negative Updates
Prolonged Middle East Conflict Headwind
Protracted conflict in the Middle East caused larger-than-anticipated impacts on shipments and service orders. Management cited a known $3 million delayed service project and said the region (~10% of business, roughly $60 million) drove outsized margin impact due to delayed service revenue; similar environment expected in Q4 with recovery targeted for H1 fiscal 2027.
Read all updates
Q3-2026 Updates
Positive
Negative
Strategic Acquisition of SFE Group
Signed definitive agreement to acquire SFE Group for approximately $472 million. SFE reported trailing 12-month sales of ~$170 million and adjusted EBITDA of ~$44 million, implying a 10.6x trailing adjusted EBITDA multiple. Transaction expands Enerpac's SAM by ~$1.0 billion (from ~$4.5B to ~$5.5B), brings complementary product categories (pipe beveling/on-site machining, orbital welding/cutting, tools & lifting) and a seasoned management team, and targets close in Q1 fiscal 2027 (subject to approvals).
Read all positive updates
Company Guidance
Enerpac narrowed FY2026 guidance, now projecting organic growth of 1–2%, adjusted EBITDA of $151–$156 million and adjusted EPS of $1.84–$1.89, while leaving free cash flow guidance unchanged (YTD cash flow from operations $69M and YTD free cash flow $60M for the first nine months versus $56M cash from operations a year ago). In Q3 the company reported adjusted EPS of $0.60 (of which $0.08 related to a $6M tariff recovery), IT&S product sales +5% organically, IT&S services −8% (but services improved sequentially +17%), Cortland organic growth +25%, Americas IT&S revenue +6% (product +10%), Asia Pacific and EMEA flat, adjusted SG&A up ~90 basis points, and management expects Q4 EBITDA margins roughly in the 23–24% range. The announced SFE Group acquisition (TTM sales ≈ $170M, adjusted EBITDA ≈ $44M) at an approximate $472M purchase price (~10.6x trailing adj. EBITDA) will expand Enerpac’s SAM by ~$1B to $5.5B, is expected to be accretive to adjusted EPS in FY2027, deliver $4–6M of adjusted EBITDA synergies by year 3, will be funded with revolver borrowings and ~ $225M accordion capacity, and leaves pro forma net leverage of ~2.8x at close with a plan to reduce to ~2.2x within 12 months (target range 1.5–2.5x); closing is targeted in Q1 FY2027 subject to approvals.Enerpac Tool Group Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 634.08M | 616.90M | 589.51M | 598.20M | 571.22M | 528.66M |
| Gross Profit | 311.01M | 306.25M | 301.01M | 295.04M | 265.39M | 243.16M |
| EBITDA | 150.71M | 146.31M | 132.32M | 97.60M | 47.98M | 70.85M |
| Net Income | 93.32M | 92.75M | 85.75M | 46.56M | 15.69M | 38.08M |
Balance Sheet | ||||||
| Total Assets | 811.54M | 827.87M | 777.33M | 762.60M | 757.88M | 820.25M |
| Cash, Cash Equivalents and Short-Term Investments | 115.68M | 151.56M | 167.09M | 154.41M | 120.70M | 140.35M |
| Total Debt | 184.79M | 227.75M | 229.12M | 253.12M | 248.19M | 227.49M |
| Total Liabilities | 387.51M | 394.17M | 385.35M | 435.98M | 438.14M | 408.05M |
| Stockholders Equity | 424.03M | 433.69M | 391.98M | 326.62M | 319.75M | 412.20M |
Cash Flow | ||||||
| Free Cash Flow | 112.30M | 91.94M | 69.91M | 68.20M | 43.32M | 42.16M |
| Operating Cash Flow | 124.52M | 111.28M | 81.32M | 77.60M | 51.74M | 54.18M |
| Investing Cash Flow | -14.14M | -46.00M | -13.95M | 11.34M | -7.24M | 13.30M |
| Financing Cash Flow | -135.26M | -81.46M | -56.27M | -53.13M | -52.20M | -81.52M |
Enerpac Tool Group Technical Analysis
Negative
35.71
Price Trends
34.79
Positive
36.07
Negative
38.06
Negative
Market Momentum
0.04
Positive
49.81
Neutral
42.41
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 above the 20-day moving average (MA) of 35.56, above the 50-day MA of 34.79, and below the 200-day MA of 38.06, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 42.41 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.80B | 19.74 | 20.01% | 0.10% | 4.27% | 8.45% | |
69 Neutral | $3.82B | 38.30 | 13.78% | 0.57% | 18.33% | 61.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $1.48B | -1.29 | -60.13% | ― | 5.96% | -37.16% | |
59 Neutral | $795.70M | 7.76 | 61.71% | ― | 38.63% | 25.62% |
* Industrials Sector Average
EPAC
Enerpac Tool Group
35.13
-2.20
-5.89%
ENOV
Enovis
25.75
-6.21
-19.43%
SXI
Standex International
315.58
154.88
96.38%
PSIX
Power Solutions
34.52
-41.13
-54.37%
Enerpac Tool Group Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Enerpac Tool Group to Acquire Specialized Fabrication Equipment
Positive
Jul 9, 2026
On July 7, 2026, Enerpac Tool Group agreed to acquire Specialized Fabrication Equipment Group for roughly $472 million in cash, valuing the target at about 10.6 times trailing adjusted EBITDA on sales of $170 million and adjusted EBITDA of $44 mil...
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.