Acme United Corp has 54.83
M in debt with debt to equity (D/E) ratio of 0.71, which is OK given its current industry classification. The entity has a current ratio of 4.81, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Debt can assist Acme United until it has trouble settling it off, either with new capital or with free cash flow. So, Acme United's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Acme United Corp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Acme United to invest in growth at high rates of return. When we think about Acme United's use of debt, we should always consider it together with cash and equity.
Our advice module can be used to complement Acme United investment recommendation provided by
average analyst sentiment. It analyzes the company's potential to grow using fundamental, technical, data market data available at the time.
We determine the current worth of Acme United using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Acme United based exclusively on its
fundamental and basic
technical indicators. By analyzing Acme United's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Acme United's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Acme United. We calculate exposure to Acme United's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Acme United's related companies.
Acme United Investment Alerts
Acme investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Acme United performance across your portfolios.Please check all
investment alerts for Acme
Acme United Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Acme value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Acme United competition to find
correlations between indicators driving the intrinsic value of Acme.
Acme United Gross Profit
Acme United Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Acme United previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Acme United Gross Profit growth over the last 10 years. Please check Acme United's
gross profit and other
fundamental indicators for more details.
Is Acme United valued wisely by the market?
The firm reported the last year's revenue of 181.9
M. Total Income to common stockholders was 12.44
M with profit before taxes, overhead, and interest of 64.8
M.
| 2019 | 2020 | 2021 | 2022 (projected) |
Consolidated Income | 5.51 M | 8.1 M | 13.66 M | 14.73 M | Direct Expenses | 90.46 M | 104.41 M | 117.29 M | 93.27 M |
Margins Breakdown
Acme United profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Acme United itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Acme United profit margins.
| Operating Margin | 6.33 |
| EBITDA Margin | 0.11 |
| Gross Margin | 0.4 |
| Profit Margin | 0.0652 |
Acme United Earnings Before Interest Taxes and Depreciation Amortization USD is comparatively stable at the moment. Also, Acme United Revenue Per Employee is decreasing over the last 8 years. The previous year's value of Acme United Revenue Per Employee was 360,944.
Our Acme United analysis implies possible reversion in August
Newest Risk Adjusted Performance is up to -0.08. Price may drop again. Acme United Corp exhibits very low volatility with skewness of 0.46 and kurtosis of 0.2. However, we advise investors to further study Acme United Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Acme United's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Acme United's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Acme United Implied Volatility
Our Final Take On Acme United
Whereas other entities in the household & personal products industry are either recovering or due for a correction, Acme United may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 22nd of July 2022, our present 90 days advice on the firm is
Strong Hold. We believe Acme United is
overvalued with
below average chance of bankruptcy for the next two years.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Acme United. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
