Actuant Story

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EPAC -- USA Stock  

USD 26.48  0.08  0.30%

Whilst many millenniums are getting more into industrials space, it makes sense to go over Actuant Corp. We will evaluate if Actuant Corp shares are reasonably priced going into April. Is the firm valuation sustainable? Here I will cover a perspective on valuation of Actuant to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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The impact of current bullish trends on Actuant Corp (NYSE:EPAC)
This firm currently holds 255 M in liabilities with Debt to Equity (D/E) ratio of 0.69, which is about average as compared to similar companies.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Actuant Corp has an asset utilization ratio of 50.1 percent. This suggests that the company is making $0.5 for each dollar of assets. An increasing asset utilization means that Actuant Corp is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Actuant Corp 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 Actuant Corp based exclusively on its fundamental and basic technical indicators. By analyzing Actuant Corp'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 Actuant Corp'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 Actuant Corp. We calculate exposure to Actuant Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Actuant Corp's related companies.

Actuant Corp Investment Alerts

Actuant 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 Actuant Corp performance across your portfolios.Please check all investment alerts for Actuant

Actuant Corp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Actuant value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Actuant Corp competition to find correlations between indicators driving the intrinsic value of Actuant.

How Actuant utilizes its cash?

To perform a cash flow analysis of Actuant Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Actuant Corp is receiving and how much cash it distributes out in a given period. The Actuant Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Actuant Corp Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (2.84 Million)

Acquisition by Sidney Simmons of 4480 shares of Actuant Corp subject to Rule 16b-3

Legal trades by Actuant Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Actuant insider trading alert for grant of class a common stock by Sidney Simmons, the corporate stakeholder, on 9th of April 2021. This event was filed by Enerpac Tool Group Corp with SEC on 2021-04-09. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Actuant Corp Indicators

The company reported the previous year's revenue of 466.05 M. Net Income was 4.01 M with profit before overhead, payroll, taxes, and interest of 217.99 M.

Margins Breakdown

Actuant profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Actuant Corp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Actuant Corp profit margins.
EBITDA Margin0.0643
Gross Margin0.5
Profit Margin9.71E-4


Actuant Corp Earnings before Tax is somewhat stable at the moment. Actuant Corp Earnings before Tax is somewhat stable at the moment.

How will Actuant investors react to the next slip?

The market risk adjusted performance is down to -1.71 as of today. Actuant Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.15. However, we advise investors to further question Actuant Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Actuant Corp'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 Actuant Corp'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.

Our Takeaway on Actuant Corp Investment

Whereas some firms under the specialty industrial machinery industry are still a bit expensive, Actuant Corp may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to short some or all of your Actuant Corp holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Actuant Corp.

About Contributor

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 Raphi Shpitalnik do not own shares of Actuant Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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