Enerpac Tool Group (EPAC): Evaluating Valuation Following Record Results and $200M Buyback Announcement

Enerpac Tool Group (EPAC) delivered a double dose of good news by announcing better-than-expected fourth-quarter and full-year results along with fresh guidance and a sizable $200 million share repurchase plan. These moves quickly grabbed investors’ attention.

See our latest analysis for Enerpac Tool Group.

Shares of Enerpac Tool Group have seen momentum build lately as upbeat Q4 numbers, record annual revenue, and a fresh $200 million buyback drew renewed attention. The past week’s 8.6% share price return highlights the market’s reaction; however, the one-year total shareholder return of -4.6% reminds us performance has been mixed in the near term. Looking at a longer timeframe, the three- and five-year total shareholder returns of 74% and 114% indicate that long-term holders have been well rewarded.

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With shares rebounding on strong results and buybacks, investors now face a familiar question: is Enerpac Tool Group genuinely undervalued at current levels, or is the market already reflecting its expected growth?

Most Popular Narrative: 15% Undervalued

With Enerpac Tool Group's last close at $41.98, the most widely followed narrative pegs its fair value at $49.50, suggesting meaningful upside potential if those bullish forecasts are realized. The stage is now set for a look inside the catalysts powering this valuation.

Rising investments in global infrastructure (notably in rail, wind, defense, and utilities) are driving strong demand in Enerpac's core segments and vertical markets (with robust orders and expanding backlog evidenced in heavy lifting and infrastructure), suggesting potential for above-market, multi-year revenue growth as these long-term projects continue.

Read the complete narrative.

What is sparking such optimism? The narrative points to bold growth bets and unusually high profitability projections, numbers that could make Enerpac Tool Group’s future resemble that of fast-growing market leaders. Curious which assumptions are driving this ambitious fair value? Don’t miss the story behind the forecasts.

Result: Fair Value of $49.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent margin pressure from tariffs and slow recovery in key markets could quickly dampen the positive outlook for Enerpac Tool Group.

Find out about the key risks to this Enerpac Tool Group narrative.

Build Your Own Enerpac Tool Group Narrative

If you want to dig into the numbers and shape your own perspective, you can build and share a custom narrative in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Enerpac Tool Group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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