Acme United Corp

Consumer Discretionary
Industrial Machinery/Components
www.acmeunited.com

Earnings Score
Moat Score
Safety Score

Market Cap $161.44M
PE 8
Debt $22.02M
Cash $5.70M
EV $177.76M
FCF $6.19M

Earnings

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Sales & Net Margins

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Earnings	$19.52M
EBIT	$23.50M
ROE	18%
ROA	14%
FCF	$6.19M
Equity	$106.32M
Growth Stability	33%
PE	8.27
PEG	0.63
PB	1.52
P/FCF	26.07
P/S	0.85
Price/Cash	0.04
Debt/Equity	0.21
Debt/FCF	3.56
Net Margins	6%
Gross Margins	39%
Op. Margins	12%
Earnings CAGR	12%
Sales Growth YoY	-4%
Sales Growth QoQ	-13%
Sales CAGR	7%
FCF CAGR	9%
Equity CAGR	10%
Earnings Stability	0.3
Earnings Growth YoY	3%
Earnings Growth QoQ	-50%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	6%
FCF CAGR 5Y	10%
Equity CAGR 5Y	14%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	-35%
Equity CAGR 3Y	13%
Market Cap	$161.44M
Revenue	$190.49M
Dividend Yield	1%
Payout Ratio	11%
Assets	$165.47M
Total Debt	$22.02M
Cash	$5.70M
Shares Outstanding	3.68M
EV	177.76M
Earnings Score	16%
Moat Score	91%
Safety Score	62%
Final Score	56%
Working Capital	76.38M
Current Ratio	4.41
Gross Profit	$74.99M
Shares Growth 3y	2%
Equity Growth QoQ	2%
Equity Growth YoY	24%

Assets & ROA

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Stockholders Equity & ROE

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Acme United Corp is a supplier of innovative first aid and medical products and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its principal products sold across all segments are First aid kits, and Medical products, Scissors, Shears, Knives, Rulers, Pencil sharpeners and Sharpening tools. The company sells its products primarily to mass market and e-commerce retailers, industrial distributors, wholesale, contract and retail stationery distributors, office supply superstores, sporting goods stores, and hardware chains. Its operations are in the United States, Canada, Europe and Asia.

SEC Filings

Direct access to Acme United Corp (ACU) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Acme United Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Acme United Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 12%

Stability 30%

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Acme United Corp Discounted Cash Flow

Fully customizable DCF calculator online for Acme United Corp.

Years

Calculation mode

= $115M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$6.2M	$6.7M	$7.3M	$8M	$8.7M	$9.5M	$10M	$11M	$12M	$13M	$15M	$145M
DCF		$6.1M	$6.1M	$6M	$5.9M	$5.9M	$5.8M	$5.8M	$5.7M	$5.7M	$5.6M	$56M
Value	$115M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	4%	4%	5%	3%	3%	4%	5%	7%	2%	9%	6%
ROA	-	9%	9%	7%	7%	8%	9%	11%	4%	15%	14%
ROE	-	11%	13%	8%	9%	10%	13%	18%	4%	18%	18%

Bad Net Margins (5.6%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-38.28	4.67	26.1	24.8	2.55	12.3	-26.82	-35.34	0.54	3.56
Debt over Equity	0.61	0.6	0.71	0.87	0.77	0.6	0.62	0.43	0.63	0.13	0.21
Growth Stability	-	-	-	79%	94%	100%	100%	100%	33%	100%	33%

Neutral Debt/FCF ratio (3.56)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.21)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (33%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	2%	13%	5%	5%	4%	15%	11%	7%	-1%	6%
Earnings YoY growth	-	0%	22%	-31%	13%	20%	47%	69%	-78%	486%	13%
Equity YoY growth	-	10%	7%	8%	5%	6%	13%	23%	3%	24%	14%
FCF YoY growth	-	-126%	-1K%	-76%	-2%	702%	-76%	-139%	15%	-2K%	10%