AMEX:ACU

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with solid track record 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

Stable Share Price: ACU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

ACU

5.1%

US Commercial Services

2.5%

US Market


1 Year Return

13.3%

ACU

7.7%

US Commercial Services

16.3%

US Market

Return vs Industry: ACU exceeded the US Commercial Services industry which returned 5.2% over the past year.

Return vs Market: ACU underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

ACUIndustryMarket
7 Day3.8%5.1%2.5%
30 Day4.8%15.4%5.6%
90 Day4.1%19.7%16.4%
1 Year15.8%13.3%9.4%7.7%18.8%16.3%
3 Year-11.2%-17.0%54.4%44.7%45.1%35.7%
5 Year38.3%24.3%91.6%72.3%75.8%56.8%

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 ($22.49) is trading below our estimate of fair value ($55.83)

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 (11.6x) compared to the US Commercial Services industry average (25.3x).

PE vs Market: ACU is good value based on its PE Ratio (11.6x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACU's PEG Ratio to determine if it is good value.


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 (1.4x).


Next Steps

Future Growth

How is Acme United forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.6%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Acme United has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Acme United performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACU has high quality earnings.

Growing Profit Margin: ACU's current net profit margins (4.3%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: ACU's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: ACU's earnings growth over the past year (33.5%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: ACU earnings growth over the past year (33.5%) exceeded the Commercial Services industry -6%.


Return on Equity

High ROE: ACU's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Acme United's financial position?


Financial Position Analysis

Short Term Liabilities: ACU's short term assets ($85.7M) exceed its short term liabilities ($20.6M).

Long Term Liabilities: ACU's short term assets ($85.7M) exceed its long term liabilities ($43.9M).


Debt to Equity History and Analysis

Debt Level: ACU's debt to equity ratio (72.1%) is considered high.

Reducing Debt: ACU's debt to equity ratio has increased from 70.8% to 72.1% over the past 5 years.

Debt Coverage: ACU's debt is well covered by operating cash flow (38%).

Interest Coverage: ACU's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACU's dividend (2.13%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: ACU's dividend (2.13%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

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 low payout ratio (24.7%), 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

How experienced are the management team and are they aligned to shareholders interests?

16.1yrs

Average management tenure


CEO

Walter Johnsen (69 yo)

24.75yrs

Tenure

US$1,066,525

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 ($USD1.07M) is above average for companies of similar size in the US market ($USD598.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Walter Johnsen
Chairman of the Board & CEO24.75yrsUS$1.07m9.13%
$ 6.9m
Brian Olschan
President20.58yrsUS$901.21k1.65%
$ 1.2m
Paul Driscoll
VP, CFO18.58yrsUS$590.30k1.03%
$ 774.6k
Larry Buchtmann
Vice President of Technologyno dataUS$182.04kno data
Y. Pek
Senior VP & GM of Asia Pacific9.5yrsno datano data

16.1yrs

Average Tenure

63yo

Average Age

Experienced Management: ACU's management team is seasoned and experienced (16.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Walter Johnsen
Chairman of the Board & CEO24.75yrsUS$1.07m9.13%
$ 6.9m
Brian Olschan
President20.58yrsUS$901.21k1.65%
$ 1.2m
Richmond Holden
Independent Director22.58yrsUS$88.54k0.46%
$ 343.0k
Stevenson Ward
Independent Director19.58yrsUS$92.01k0.47%
$ 353.1k
Susan Murphy
Independent Director17.58yrsUS$84.14k0.25%
$ 189.1k
Rex Davidson
Independent Director14.33yrsUS$86.72kno data
Brian Barker
Independent Director1.33yrsUS$70.30kno data

17.6yrs

Average Tenure

68yo

Average Age

Experienced Board: ACU's board of directors are seasoned and experienced ( 17.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$75.065m
  • Shares outstanding: 3.34m
  • Website: https://www.acmeunited.com

Number of Employees


Location

  • Acme United Corporation
  • 55 Walls Drive
  • Suite 201
  • Fairfield
  • Connecticut
  • 6824
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACUAMEX (NYSE MKT LLC)YesCommon StockUSUSDNov 1970
UT1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1970

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 23:39
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.