Acme United (ACU) AI Stock Analysis

• Market Cap: $150.82M
• Dividend Yield: 1.49%
• Average Volume (3M): 8.11K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.62
• Revenue Growth: 1.56%
• EPS Growth: -45.26%
• Country: US
• Employees: 633
• Sector: Industrials
• Sector Strength: 66
• Industry: Household & Personal Products
• EPS (TTM): 2.43
• Shares Outstanding: 3,754,498
• 10 Day Avg. Volume: 9,583
• 30 Day Avg. Volume: 8,107
• PEG Ratio: 0.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.77
• Price to Cash Flow (P/CF): 5.90
• P/FCF Ratio: 5.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Acme United's overall stock score of 69 reflects its solid financial stability and positive earnings call outcomes, tempered by concerns over declining cash flow and profitability. The valuation appears fair, and technical indicators show stability without strong directional momentum. Positive earnings growth and strategic initiatives suggest potential for future growth, but challenges remain in managing tariffs and expenses.

Acme United Business Overview & Revenue Model

Company Description

Acme United Corporation supplies first aid and safety, cutting, sharpening, and measuring products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. The company offers scissors, shears, knives, rulers, pencil sharpeners, paper trimmers, safety cutters, lettering products, glue guns, and other craft products under the Westcott brand name; and cutting tools under the Clauss brand. It also provides fixed blades, folding knives, sight cutting tools, and tactical tools under the Camillus brand; fishing tools and knives, as well as cut and puncture resistant gloves, telescopic landing nets, net containment systems, and tools and fishing gaffs under the Cuda brand; and sharpening tools under the DMT brand. In addition, the company offers first aid kit and safety solutions under the First Aid Only brand; portable eyewash solution and over-the-counter medication, including active ingredients aspirin, acetaminophen, and ibuprofen under the PhysiciansCare brand; bodily fluid and spill clean-up solution under the Spill Magic brand; various first aid kit, refill, and safety supplies, including CPR kits, burn kits, and automotive and emergency first aid kits under the First Aid Central; and alcohol prep pads, alcohol wipes, benzalkonium chloride wipes, various antiseptic wipes, castile soaps, and lens cleaning wipes under the Med-Nap brand. It sells its products directly and through its independent manufacturer representatives to wholesale, contract, and retail stationery distributors; office supply super stores; school supply distributors; industrial distributors; wholesale florists; mass market and e-commerce retailers; and hardware chains, as well as sells a selection of products through its websites. The company was formerly known as Acme Shear Company and changed its name to Acme United Corporation in 1971. Acme United Corporation was founded in 1867 and is based in Shelton, Connecticut.

How the Company Makes Money

Acme United makes money primarily through the manufacturing and sale of its diverse range of cutting, measuring, and safety products. The company's revenue streams include direct sales to major retailers, such as office supply stores and mass market retailers, as well as to industrial distributors and e-commerce platforms. Acme United also benefits from its strategic acquisitions that expand its product offerings and market reach. The company’s focus on quality and innovation allows it to maintain competitive pricing and customer loyalty, driving consistent revenue growth.

Acme United Financial Statement Overview

Summary

Acme United exhibits a mixed financial performance with strong revenue generation but declining profitability and cash flow. The balance sheet remains robust, with favorable leverage ratios and equity position. However, challenges in sustaining profit margins and generating free cash flow may pose risks to future financial stability and growth prospects.

Income Statement

Acme United's income statement shows a stable revenue base with moderate growth. The gross profit margin is healthy at approximately 39.2% for the latest year, indicating efficient production and sales processes. However, the net profit margin has declined from the previous year, suggesting increased costs or expenses impacting profitability. The EBIT and EBITDA margins are strong, yet the declining net income raises concerns about bottom-line efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a high equity ratio of 65.9%, indicating financial stability. The debt-to-equity ratio stands at 0.31, showing conservative leverage use. Return on equity is moderate at 9.4%, reflecting reasonable profitability from shareholder investments. However, the decrease in stockholders' equity from the previous year suggests potential challenges in asset management or profit retention.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow from previous years, affecting liquidity. The absence of operating cash flow in the latest year limits the ability to analyze cash generation from operations. While past years show positive free cash flow, ongoing negative figures could impact future operational and investment capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
194.49M	191.50M	193.96M	182.09M	164.00M
	Gross Profit
76.35M	72.21M	63.56M	64.80M	59.59M
	EBIT
14.14M	13.19M	1.48M	8.54M	11.41M
	EBITDA
20.10M	30.90M	10.59M	20.30M	14.61M
	Net Income Common Stockholders
10.02M	17.79M	3.03M	13.66M	8.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.40M	4.80M	6.10M	4.84M	4.17M
	Total Assets
162.17M	149.24M	164.38M	144.44M	129.87M
	Total Debt
32.84M	25.93M	63.83M	48.50M	47.98M
	Net Debt
26.44M	20.72M	57.73M	43.66M	43.81M
	Total Liabilities
55.19M	51.34M	85.35M	67.36M	67.15M
	Stockholders Equity
106.98M	97.90M	79.03M	77.08M	62.72M
Cash Flow		Free Cash Flow
4.83M	23.92M	-1.71M	-1.23M	3.15M
	Operating Cash Flow
11.98M	28.90M	2.89M	5.14M	5.72M
	Investing Cash Flow
-12.94M	7.43M	-14.23M	-6.37M	-13.95M
	Financing Cash Flow
2.00M	-38.44M	14.28M	2.04M	5.29M

Acme United Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACU, the sentiment is Positive. The current price of 40.17 is above the 20-day moving average (MA) of 38.90, above the 50-day MA of 37.77, and above the 200-day MA of 39.21, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 54.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACU.

Acme United Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WWD	74 Outperform	$10.88B	30.66	16.82%	0.56%	7.38%	26.61%
KAI	74 Outperform	$3.96B	35.43	13.77%	0.38%	9.99%	-4.18%
NDSN	73 Outperform	$11.41B	25.53	16.15%	1.46%	0.78%	-8.42%
MSA	72 Outperform	$5.81B	20.54	27.01%	1.38%	1.15%	388.76%
ACU	69 Neutral	$150.82M	16.43	9.79%	1.49%	1.56%	-45.26%
ATKR	62 Neutral	$2.08B	5.87	25.00%	2.11%	-12.01%	-38.33%
Sector *	62 Neutral	$8.05B	13.61	3.91%	3.11%	3.81%	-13.91%