Enerpac Tool Group Corp

EPAC

Misc Industrial & Commercial Machinery & Equipment

Mkt Cap

$2.055B

PE

29.29

Debt

$250.5M

Cash

$153.7M

EV

$2.152B

FCF

$73.77M

Market Cap

$2.055B

P/E Ratio

29.29

Debt

$250.5M

Cash

$153.7M

EV

$2.152B

FCF

$73.77M

Charts data: {"Earnings":[{"time":"2014-08-30","value":163573000},{"time":"2015-08-30","value":19872000},{"time":"2016-08-30","value":-105174000},{"time":"2017-08-30","value":-66213000},{"time":"2018-08-30","value":-21648000},{"time":"2019-08-30","value":-249145000},{"time":"2020-08-30","value":723000},{"time":"2021-08-30","value":38077000},{"time":"2022-08-30","value":15686000},{"time":"2023-08-30","value":46561000}],"Sales":[{"time":"2014-08-30","value":1399862000},{"time":"2015-08-30","value":1249254000},{"time":"2016-08-30","value":1149410000},{"time":"2017-08-30","value":1095784000},{"time":"2018-08-30","value":1182611000},{"time":"2019-08-30","value":654758000},{"time":"2020-08-30","value":493292000},{"time":"2021-08-30","value":528660000},{"time":"2022-08-30","value":571223000},{"time":"2023-08-30","value":598204000}],"Net Margins":[{"time":"2014-08-30","value":0.11684937515269363},{"time":"2015-08-30","value":0.015907093353313258},{"time":"2016-08-30","value":-0.0915025969845399},{"time":"2017-08-30","value":-0.060425229789812594},{"time":"2018-08-30","value":-0.01830525844931258},{"time":"2019-08-30","value":-0.3805146328872652},{"time":"2020-08-30","value":0.0014656633393608654},{"time":"2021-08-30","value":0.07202549842999281},{"time":"2022-08-30","value":0.02746037887129895},{"time":"2023-08-30","value":0.07783465172416099}],"Assets":[{"time":"2014-08-30","value":1856879000},{"time":"2015-08-30","value":1636917000},{"time":"2016-08-30","value":1442538000},{"time":"2017-08-30","value":1516955000},{"time":"2018-08-30","value":1481338000},{"time":"2019-08-30","value":1124274000},{"time":"2020-08-30","value":824294000},{"time":"2021-08-30","value":820247000},{"time":"2022-08-30","value":757312000},{"time":"2023-08-30","value":762597000}],"Stockholders Equity":[{"time":"2014-08-30","value":1001711000},{"time":"2015-08-30","value":673001000},{"time":"2016-08-30","value":520950000},{"time":"2017-08-30","value":500539000},{"time":"2018-08-30","value":558712000},{"time":"2019-08-30","value":301179000},{"time":"2020-08-30","value":359226000},{"time":"2021-08-30","value":412198000},{"time":"2022-08-30","value":318611000},{"time":"2023-08-30","value":326620000}],"ROE":[{"time":"2014-08-30","value":0.16329360464245676},{"time":"2015-08-30","value":0.0295274449815082},{"time":"2016-08-30","value":-0.2018888568960553},{"time":"2017-08-30","value":-0.13228339849642085},{"time":"2018-08-30","value":-0.03874625925342574},{"time":"2019-08-30","value":-0.8272323103536435},{"time":"2020-08-30","value":0.002012660553523409},{"time":"2021-08-30","value":0.09237550885739378},{"time":"2022-08-30","value":0.04923244960155174},{"time":"2023-08-30","value":0.1425540383320066}],"ROA":[{"time":"2014-08-30","value":0.10938138672471388},{"time":"2015-08-30","value":0.032716380854985315},{"time":"2016-08-30","value":-0.0694726932670058},{"time":"2017-08-30","value":-0.03311634161857142},{"time":"2018-08-30","value":0.012284839786733346},{"time":"2019-08-30","value":0.042263718630867565},{"time":"2020-08-30","value":0.029335407027104406},{"time":"2021-08-30","value":0.06231415658941758},{"time":"2022-08-30","value":0.04048529536043269},{"time":"2023-08-30","value":0.11004763984122676}]}

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 through Industrial Tools & Services (IT&S) and Other segments. 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, alternative and renewable energy, civil construction, and other 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.

Sector

10-K
8/31/23
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5/31/23
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2/28/23
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11/30/22
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10-Q
11/30/18
10-K
8/31/18
10-Q
5/31/18
10-Q
2/28/18

DCF

Discounted Cash Flow Valuation of Enerpac Tool Group Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$73.77M	$66.12M	$59.26M	$53.11M	$47.6M	$42.67M	$38.24M	$34.27M	$30.72M	$27.53M	$24.67M	$246.7M
DCF		$57.5M	$44.81M	$34.92M	$27.22M	$21.21M	$16.53M	$12.88M	$10.04M	$7.826M	$6.099M	$60.99M
Value	$300M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 7.3%

Earnings Stability -57%

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.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Net Margin	1.6%	-9.2%	-6%	-1.8%	-38%	0.15%	7.2%	2.7%	7.8%	12%
ROA	3.3%	-6.9%	-3.3%	1.2%	4.2%	2.9%	6.2%	4%	11%	15%
ROE	3%	-20%	-13%	-3.9%	-83%	0.2%	9.2%	4.9%	14%	21%

What is the average Net Margin?

The average Net Margin over the past 5 years is -3.67%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +5.07%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +4.95%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.48%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -9.66%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +10.36%.

Safety & Stabiliy

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Debt FCF	5.56	6.19	9.98	6.63	12.08	42.89	4.08	4.75	3.16	3.40
Debt Equity	0.88	1.16	1.19	1.01	1.56	0.71	0.42	0.65	0.67	0.74
MIN
Graham Stability	-	-	-250%	-	-	-	-	-	100%	-250%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.40.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -2.23.

What is the Graham’s Stability?

Graham’s Stability measure stands at -2.54.

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.

Earnings growth has been increasing in past years.

Years	08-2016	08-2018	08-2020	08-2022	Trend
Revenue	-8.9%	-13%	6.6%	4.7%	1.7%
Net Income	-	-	300%	200%	120%
Stockholders Equity	-6.5%	-10%	-3.1%	2.5%	3.1%
FCF	-4.8%	-4.1%	130%	58%	22%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -12.74%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.69%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +123.21%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -10.18%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +3.1%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -4.09%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +22.4%.