AMEX:ACU

Stock Analysis Report

Executive Summary

Acme United Corporation, together with its subsidiaries, supplies cutting, measuring, first aid, and sharpening products to the school, home, office, hardware, sporting good, and industrial markets in the United States, Canada, Europe, and Asia.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Acme United's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.8%

ACU

1.6%

US Commercial Services

0.07%

US Market


1 Year Return

25.5%

ACU

21.0%

US Commercial Services

8.9%

US Market

Return vs Industry: ACU exceeded the US Commercial Services industry which returned 21% over the past year.

Return vs Market: ACU exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

ACUIndustryMarket
7 Day7.8%1.6%0.07%
30 Day6.7%2.5%-0.3%
90 Day2.2%2.9%-1.6%
1 Year28.9%25.5%25.6%21.0%11.3%8.9%
3 Year12.0%5.1%74.2%62.3%46.3%36.8%
5 Year37.1%23.4%103.5%83.0%62.1%44.3%

Price Volatility Vs. Market

How volatile is Acme United's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Acme United undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACU ($21.34) is trading below our estimate of fair value ($47.27)

Significantly Below Fair Value: ACU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ACU is good value based on its PE Ratio (14x) compared to the Commercial Services industry average (25.5x).

PE vs Market: ACU is good value based on its PE Ratio (14x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ACU is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ACU is good value based on its PB Ratio (1.3x) compared to the US Commercial Services industry average (1.9x).


Next Steps

Future Growth

How is Acme United forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACU's forecast earnings growth (10% per year) is above the savings rate (2.7%).

Earnings vs Market: ACU's earnings (10% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: ACU's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACU's revenue (4.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ACU's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ACU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Acme United performed over the past 5 years?

-2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ACU's earnings have declined by -2.4% per year over the past 5 years.

Accelerating Growth: ACU's earnings growth over the past year (53%) exceeds its 5-year average (-2.4% per year).

Earnings vs Industry: ACU earnings growth over the past year (53%) exceeded the Commercial Services industry -2.4%.


Return on Equity

High ROE: ACU's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: ACU's Return on Assets is below or equal to the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: ACU's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Acme United's financial position?


Financial Position Analysis

Short Term Liabilities: ACU's short term assets ($77.1M) exceeds its short term liabilities ($16.6M)

Long Term Liabilities: ACU's short term assets (77.1M) exceeds its long term liabilities (42.6M)


Debt to Equity History and Analysis

Debt Level: ACU's debt to equity ratio (75.7%) is considered high

Reducing Debt: ACU's debt to equity ratio has reduced from 77.3% to 75.7% over the past 5 years.

Debt Coverage: ACU's debt is well covered by operating cash flow (25.5%).

Interest Coverage: ACU's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: ACU has a high level of physical assets or inventory.

Debt Coverage by Assets: ACU's debt is covered by short term assets (assets are 1.851520x debt).


Next Steps

Dividend

What is Acme United's current dividend yield, its reliability and sustainability?

2.25%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ACU's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ACU's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: ACU's dividends per share have been stable in the past 10 years.

Growing Dividend: ACU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.4%), ACU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Acme United's salary, the management and board of directors tenure and is there insider trading?

15.3yrs

Average management tenure


CEO

Walter Johnsen (68yo)

23.9yrs

Tenure

US$1,100,358

Compensation

Mr. Walter C. Johnsen has been an Executive Chairman and Chief Executive Officer at Acme United Corp. since January 1, 2007 and November 30, 1995 respectively. Mr. Johnsen served as President of Acme Unite ...


CEO Compensation Analysis

Compensation vs. Market: Walter's total compensation ($USD1.10M) is about average for companies of similar size in the US market ($USD509.30K).

Compensation vs Earnings: Walter's compensation has been consistent with company performance over the past year.


Management Age and Tenure

15.3yrs

Average Tenure

62yo

Average Age

Experienced Management: ACU's management team is seasoned and experienced (15.3 years average tenure).


Board Age and Tenure

16.8yrs

Average Tenure

67yo

Average Age

Experienced Board: ACU's board of directors are seasoned and experienced ( 16.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$8,83126 Oct 18
Walter Johnsen
EntityIndividual
Role
Chief Executive Officer
Chairman of the Board & CEO
Shares525
Max PriceUS$16.82

Ownership Breakdown


Management Team

  • Walter Johnsen (68yo)

    Chairman of the Board & CEO

    • Tenure: 23.9yrs
    • Compensation: US$1.10m
  • Brian Olschan (62yo)

    President

    • Tenure: 19.8yrs
    • Compensation: US$883.40k
  • Paul Driscoll (58yo)

    VP, CFO

    • Tenure: 17.8yrs
    • Compensation: US$497.00k
  • Larry Buchtmann

    Vice President of Technology

    • Tenure: 0yrs
    • Compensation: US$182.04k
  • Y. Pek

    Senior VP & GM of Asia Pacific

    • Tenure: 8.7yrs

Board Members

  • Walter Johnsen (68yo)

    Chairman of the Board & CEO

    • Tenure: 23.9yrs
    • Compensation: US$1.10m
  • Brian Olschan (62yo)

    President

    • Tenure: 19.8yrs
    • Compensation: US$883.40k
  • Rick Holden (65yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$86.36k
  • Stevenson Ward (74yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$88.00k
  • Susan Murphy (67yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$81.26k
  • Rex Davidson (69yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$83.73k
  • Brian Barker (59yo)

    Independent Director

    • Tenure: 0.5yrs

Company Information

Acme United Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acme United Corporation
  • Ticker: ACU
  • Exchange: AMEX
  • Founded: 1867
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$71.534m
  • Shares outstanding: 3.35m
  • Website: https://www.acmeunited.com

Number of Employees


Location

  • Acme United Corporation
  • 55 Walls Drive
  • Fairfield
  • Connecticut
  • 6824
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACUAMEX (NYSE MKT LLC)YesCommon StockUSUSDNov 1970

Biography

Acme United Corporation, together with its subsidiaries, supplies cutting, measuring, first aid, and sharpening products to the school, home, office, hardware, sporting good, and industrial markets in the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:30
End of Day Share Price2019/10/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.