Are retail investors taking in Actuant Corp (NYSE:EPAC) or Barnes?

Barnes would recover faster from the current slip as its shares price went up 0.59% to Actuant Corp's 1.77%As many rational traders are trying to avoid industrials space, it makes sense to go over Actuant Corp a little further and understand how it stands against Barnes and other similar entities. We are going to analyze some of the competitive aspects of both Actuant and Barnes.
Published over a year ago
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Reviewed by Ellen Johnson

By analyzing existing basic indicators between Actuant Corp and Barnes, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Barnes with a short position in Actuant Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
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 59.77 percent. This suggests that the company is making $0.6 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.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Enerpac or Babcock is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

understanding Enerpac Tool dividends

A dividend is the distribution of a portion of Enerpac Tool earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Enerpac Tool dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Enerpac one year expected dividend income is about USD0.03 per share.
The current year's Dividend Payout Ratio is expected to grow to 0.05, whereas Dividends Paid is forecasted to decline to about 2.4 M.
Last ReportedProjected for 2024
Dividends Paid2.6 M2.4 M
Dividend Yield 0  0 
Dividend Payout Ratio 0.04  0.05 
Dividend Paid And Capex Coverage Ratio(12.52)(11.90)
Investing in stocks that pay dividends, such as stock of Enerpac Tool Group, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Enerpac Tool must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Enerpac Tool. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Enerpac Tool's Liquidity

Enerpac Tool financial leverage refers to using borrowed capital as a funding source to finance Enerpac Tool Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Enerpac Tool 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. Financial leverage can amplify the potential profits to Enerpac Tool's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Enerpac Tool's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Enerpac Tool's total debt and its cash.

Correlation Between Enerpac and Babcock Wilcox Enter

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Enerpac Tool together with similar or unrelated positions with a negative correlation. For example, you can also add Babcock Wilcox to your portfolio. If Babcock Wilcox is not perfectly correlated to Enerpac Tool it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Enerpac Tool, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Enerpac Tool and Babcock Wilcox in your portfolio? Please note if you are using this as a pair-trade strategy between Enerpac Tool and Babcock Wilcox, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between EPAC and BW for more information.

Breaking down Enerpac Tool Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Actuant Corp revenue. Based on the latest financial disclosure, Actuant Corp reported 556.08 M of revenue. This is 84.11% lower than that of the Industrials sector and significantly higher than that of the Specialty Industrial Machinery industry. The revenue for all United States stocks is 94.11% higher than that of the firm. As for Barnes we see revenue of 1.27 B, which is much higher than that of the Specialty Industrial Machinery
Actuant556.08 Million
Sector0.0
Barnes1.27 Billion
556.1 M
Actuant
Sector
1.3 B
Barnes

Analysis of Actuant Corp

Current Information Ratio is up to 0.02. Price may slip again.
As of the 28th of June, Actuant Corp shows the mean deviation of 1.74, and Risk Adjusted Performance of (0.041727). Actuant Corp technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Actuant Corp, which can be compared to its rivals. Please confirm Actuant Corp jensen alpha, potential upside, skewness, as well as the relationship between the maximum drawdown and semi variance to decide if Actuant Corp is priced correctly, providing market reflects its regular price of 19.42 per share. Given that Actuant Corp has jensen alpha of 0.0405, we suggest you to validate Actuant Corp's prevailing market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Actuant Corp

Whereas other entities in the specialty industrial machinery industry are either recovering or due for a correction, Actuant may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 28th of June 2022, we believe that at this point, Actuant Corp is undervalued with low probability of distress within the next 2 years. Our actual buy-hold-sell recommendation on the company is Strong Hold.

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Editorial Staff

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 Enerpac Tool Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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