Actuant Story

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EPAC -- USA Stock  

USD 26.07  0.41  1.55%

Actuant Corp is scheduled to announce its earnings today. The next earnings report is expected on the 24th of June 2021. Actuant Corp Average Assets are projected to decrease significantly based on the last few years of reporting. The past year's Average Assets were at 779.33 Million. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 53.7 M, whereas Free Cash Flow is forecasted to decline to (13.4 M). While some millenniums are indifferent towards industrials space, it makes sense to go over Actuant Corp as a unique investment alternative.
Published over three weeks ago
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Is Actuant Corp (NYSE:EPAC) outlook still optimistic based on the current debt level?
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.
Actuant Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Actuant Corp, including all of Actuant Corp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Actuant Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Actuant Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Actuant Total Debt

Actuant Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Actuant Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Actuant Corp balance sheet include debt obligations and money owed to different Actuant Corp vendors, workers, and loan providers. Below is the chart of Actuant main long-term debt accounts currently reported on its balance sheet.
You can use Actuant Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Actuant Corp's Liquidity

Actuant Corp financial leverage refers to using borrowed capital as a funding source to finance Actuant Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Actuant Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Actuant Corp's total debt and its cash.

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.

Asset Breakdown

647.1 M
Assets Non Current
317.3 M
562.6 M
Current Assets
Total Assets1.07 Billion
Current Assets562.64 Million
Assets Non Current647.14 Million
Goodwill317.32 Million
Tax Assets15.31 Million

Is Actuant Corp getting insane?

Current variance is at 5.0. Actuant Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.03 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 Final Perspective on Actuant Corp

Whereas few other entities under the specialty industrial machinery industry are still a bit expensive, Actuant Corp may offer a potential longer-term growth to investors. To conclude, as of the 24th of March 2021, we believe that at this point, Actuant Corp is very steady with low chance of distress within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. Our actual 30 days 'Buy-vs-Sell' recommendation on the company is Hold.

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 Achuva Shats 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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