Enerpac Tool Group (EPAC) AI Stock Analysis

• Market Cap: $2.31B
• Dividend Yield: 0.09%
• Average Volume (3M): 205.43K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.84
• Revenue Growth: 0.43%
• EPS Growth: 34.59%
• Country: US
• Employees: 2,000
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 0.39
• Shares Outstanding: 54,084,915
• 10 Day Avg. Volume: 258,038
• 30 Day Avg. Volume: 205,426
• PEG Ratio: -1.24
• Price to Book (P/B): 4.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.14
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 4.09
• Enterprise Value/Ebitda: 2.32
• 1Y Price Target: $53.00
• Price Target Upside: 26.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $48.00 ▲(14.48%Upside)

Enerpac Tool Group's overall score benefits from its strong financial performance and positive sentiment from the earnings call, highlighting growth and strategic initiatives. However, the stock's high valuation and mixed technical analysis temper the overall score, indicating cautious optimism.

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 makes money primarily through the sale of its high-performance industrial tools and solutions. The company's revenue streams include direct sales of hydraulic tools and equipment to end-users across various industries, as well as sales through a network of distributors and dealers. Enerpac also generates income through service and maintenance contracts, ensuring their products operate efficiently over time. Additionally, the company may engage in strategic partnerships or collaborations that expand its market reach or enhance its product offerings. Key factors contributing to Enerpac's earnings include its strong brand reputation, innovation in product design, and a global sales network that allows it to access diverse markets.

Enerpac Tool Group Financial Statement Overview

Summary

Enerpac Tool Group demonstrates strong financial performance with steady revenue growth, healthy profitability, and a solid balance sheet. The company achieves impressive returns on equity and manages low leverage. Continued focus on maintaining operational efficiency and managing leverage is crucial for sustaining growth and financial stability.

Income Statement

Enerpac Tool Group demonstrates strong financial performance with steady revenue growth and improving profitability. The Gross Profit Margin stands at 50.43%, showcasing efficient cost management. The Net Profit Margin of 15.47% indicates solid profitability. The Revenue Growth Rate of 1.75% TTM highlights consistent expansion. Additionally, the EBIT Margin of 21.16% and EBITDA Margin of 21.82% further underscore the company's robust operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.01, indicating low leverage. The Return on Equity (ROE) at 22.87% signals effective utilization of shareholder funds for generating profits. The Equity Ratio of 52.27% suggests a solid equity base, providing stability. However, maintaining this balance is crucial to ensure continued financial health.

Cash Flow

Enerpac Tool Group's cash flow statement reveals healthy cash generation. The Free Cash Flow Growth Rate of 1.56% indicates consistent cash flow improvement. The Operating Cash Flow to Net Income Ratio of 0.98 reflects efficient cash flow operations relative to net income, while the Free Cash Flow to Net Income Ratio of 0.77 suggests strong free cash flow generation, supporting future investments and debt repayments.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
599.83M	589.51M	598.20M	571.22M	528.66M	493.29M
	Gross Profit
302.54M	301.01M	295.04M	265.39M	243.16M	217.19M
	EBIT
126.95M	121.59M	83.92M	30.66M	51.11M	24.18M
	EBITDA
133.59M	132.32M	97.60M	47.98M	70.85M	48.59M
	Net Income Common Stockholders
92.82M	85.75M	46.56M	15.69M	38.08M	5.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.51M	167.09M	154.41M	120.70M	140.35M	152.17M
	Total Assets
776.63M	777.33M	762.60M	757.88M	820.25M	824.29M
	Total Debt
192.09M	194.50M	214.09M	204.00M	175.00M	255.00M
	Net Debt
72.58M	27.41M	59.67M	83.30M	34.65M	102.83M
	Total Liabilities
370.65M	385.35M	435.98M	438.14M	408.05M	465.07M
	Stockholders Equity
405.98M	391.98M	326.62M	319.75M	412.20M	359.23M
Cash Flow		Free Cash Flow
71.00M	69.91M	68.20M	43.32M	42.16M	-16.63M
	Operating Cash Flow
90.78M	81.32M	77.60M	51.74M	54.18M	-3.16M
	Investing Cash Flow
-46.97M	-13.95M	11.34M	-7.24M	13.30M	176.07M
	Financing Cash Flow
-79.59M	-56.27M	-53.13M	-52.20M	-81.52M	-238.93M

Enerpac Tool Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 41.93 is below the 20-day moving average (MA) of 42.87, below the 50-day MA of 42.01, and below the 200-day MA of 43.82, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 16.07 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
EPAC	72 Outperform	$2.31B	25.21	23.87%	0.09%	0.43%	34.59%
SXI	69 Neutral	$1.88B	30.85	9.29%	0.82%	2.67%	-18.41%
TNC	69 Neutral	$1.39B	20.86	11.04%	1.57%	1.35%	-40.63%
CXT	66 Neutral	$3.25B	19.51	16.23%	1.20%	9.28%	-8.45%
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%
HI	50 Neutral	$1.45B	―	-18.22%	4.38%	0.31%	-423.59%
ENOV	47 Neutral	$1.84B	―	-27.40%	―	18.32%	-712.12%

Enerpac Tool Group Corporate Events

Enerpac Tool Group Updates Performance Share Agreements

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.