Fundamental analysis: Acme United Corporation (ACU)

Awarener score: 8.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Superb) and growth (Modest), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

Business growth has been almost stagnant. It's been more than average in relation to peer companies.
Acme United Corporation business trend is extremely stable, which is best. It looks somewhat better than rivals.

Margins score: 5.7

ACU profit margins -on goods and services sold- are usually hardly sufficient. They stand worse than most rival companies.
Business profit on sales tends to be sufficient. It's weak when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still somewhat worse than similar companies.
Profits -before income taxes- are usually sufficient considering total sales, and remain almost average when measured against rivals.
Total net profit tends to be sufficient when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 3.7

Acme United Corporation profit -on goods and services sold- has been growing at a very low pace. It's been rather normal in relation to competitors.
In recent years, earnings -on operations- have been shrinking, which has been worse than most comparable firms.
Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
In past years, profits -before income taxes- grew at a low speed. It was slightly worse than rivals.
In the previous years, growth on total net profit has been low, and almost average when measured against peer companies.
Earnings per share have grown at a low rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 8.0

ACU managed to pay little to no income taxes on profits made in the past years. It's been better than most peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.8

Acme United Corporation usually gets very good returns on the resources it controls. It proves almost average when measured against peer firms.
The company normally gets good proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks almost average when measured against competitors.
In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 5.9

ACU usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands below average when measured against rival firms.
The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is encouraging in relation to industry peers.
In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came slightly worse than competitors.
Dividend payments have been more or less stable in recent years. The company has behaved close to average when compared to similar firms.
Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks somewhat better than comparable companies.
The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.6

Acme United Corporation intangible assets (like brands and goodwill) represent some portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be more than average in relation to peer companies.
The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be excellent in relation to similar firms.
A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains slightly worse than rival firms.
Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks great when measured against rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's excellent in relation to peer firms.
For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is slightly worse than similar enterprises.
Usually, sales are on slightly higher than two months credit. It still ranks substantially worse when measured against peers.
Normally has approximately six months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
On average, it takes a lot of months from the purchase to charging customers. It happens to be mediocre against peers.
On average pays suppliers before a month since the purchase. It ranks substantially worse when measured against industry peers.
The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's in a very weak position compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat worse than rival firms.
Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 6.4

Acme United Corporation looks heavily expensive in relation to profits and financial position. It happens to be below average when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in good shape compared to peers.
In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands well ranked against similar companies.
The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still more than average in relation to industry firms.
In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
The company is indebted, it should focus on loan repayment. It looks worse than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks almost average when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks excellent in relation to rival firms.
The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains better than most peer firms.
In the past twelve months, the operating business lost a little money. It happens to be weak when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still excellent in relation to peer companies.

Total score: 6.2

Company at a glance: Acme United Corporation (ACU)

Sector, industry: Consumer Defensive, Household & Personal Products

Market Cap: 0.09 billions

Revenues TTM: 0.19 billions

Acme United Corporation supplies first aid and safety, cutting, sharpening, and measuring products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. The company offers scissors, shears, knives, rulers, pencil sharpeners, paper trimmers, safety cutters, lettering products, glue guns, and other craft products under the Westcott brand name; and cutting tools under the Clauss brand. It also provides fixed blades, folding knives, sight cutting tools, and tactical tools under the Camillus brand; fishing tools and knives, as well as cut and puncture resistant gloves, telescopic landing nets, net containment systems, and tools and fishing gaffs under the Cuda brand; and sharpening tools under the DMT brand. In addition, the company offers first aid kit and safety solutions under the First Aid Only brand; portable eyewash solution and over-the-counter medication, including active ingredients aspirin, acetaminophen, and ibuprofen under the PhysiciansCare brand; bodily fluid and spill clean-up solution under the Spill Magic brand; various first aid kit, refill, and safety supplies, including CPR kits, burn kits, and automotive and emergency first aid kits under the First Aid Central; and alcohol prep pads, alcohol wipes, benzalkonium chloride wipes, various antiseptic wipes, castile soaps, and lens cleaning wipes under the Med-Nap brand. It sells its products directly and through its independent manufacturer representatives to wholesale, contract, and retail stationery distributors; office supply super stores; school supply distributors; industrial distributors; wholesale florists; mass market and e-commerce retailers; and hardware chains, as well as sells a selection of products through its websites. The company was formerly known as Acme Shear Company and changed its name to Acme United Corporation in 1971. Acme United Corporation was founded in 1867 and is based in Shelton, Connecticut.