Acme United Corporation
Acme United Corporation Fundamental Analysis
Acme United Corporation (ACU) shows weak financial fundamentals with a PE ratio of 16.76, profit margin of 5.18%, and ROE of 8.95%. The company generates $0.2B in annual revenue with weak year-over-year growth of 1.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ACU's fundamental strength across five key dimensions:
Efficiency Score
ExcellentACU demonstrates superior asset utilization.
Valuation Score
ModerateACU shows balanced valuation metrics.
Growth Score
WeakACU faces weak or negative growth trends.
Financial Health Score
ModerateACU shows balanced financial health with some risks.
Profitability Score
WeakACU struggles to sustain strong margins.
Key Financial Metrics
Is ACU Expensive or Cheap?
P/E Ratio
ACU trades at 16.76 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ACU's PEG of 11.10 indicates potential overvaluation.
Price to Book
The market values Acme United Corporation at 1.45 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.59 times EBITDA. This is generally considered low.
How Well Does ACU Make Money?
Net Profit Margin
For every $100 in sales, Acme United Corporation keeps $5.18 as profit after all expenses.
Operating Margin
Core operations generate 7.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.95 in profit for every $100 of shareholder equity.
ROA
Acme United Corporation generates $59.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Acme United Corporation generates limited operating cash flow of $18.24M, signaling weaker underlying cash strength.
Free Cash Flow
Acme United Corporation produces free cash flow of $7.58M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.99 in free cash annually.
FCF Yield
ACU converts 4.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.004
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
59.56
vs 25 benchmark
ROCE
Return on capital employed
-0.67
vs 25 benchmark
How ACU Stacks Against Its Sector Peers
| Metric | ACU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.76 | 22.44 | Better (Cheaper) |
| ROE | 8.95% | 1180.00% | Weak |
| Net Margin | 5.18% | -3990.00% (disorted) | Weak |
| Debt/Equity | 0.24 | 1.21 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 2.53 | Weak Liquidity |
| ROA | 5956.21% | -192044.00% (disorted) | Strong |
ACU outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Acme United Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.66%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
64.66%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-26.23%
Industry Style: Defensive, Dividend, Low Volatility
Declining