📊 ACU Key Takeaways
Is Acme United Corp. (ACU) a Good Investment?
ACME United demonstrates solid financial stability with strong liquidity (4.21x current ratio) and low leverage (0.1x debt/equity), but faces growth headwinds with modest revenue (+1.1% YoY) and thin operating margins (7.5%) characteristic of mature hardware/cutlery sector. The company generates positive free cash flow (7.6M) and maintains healthy interest coverage, but profitability metrics remain muted with returns on equity and assets below 10%.
ACME UNITED shows solid fundamental stability with healthy gross margins, positive free cash flow, and a conservatively levered balance sheet. Liquidity is strong and interest coverage is comfortable, which limits financial risk. However, revenue and earnings growth are modest, and free cash flow conversion remains only moderate, keeping the overall outlook balanced rather than strongly bullish.
Why Buy Acme United Corp. Stock? ACU Key Strengths
- Exceptional liquidity position with 4.21x current ratio and 1.59x quick ratio indicating strong ability to meet short-term obligations
- Conservative capital structure with 0.10x debt/equity ratio and 8.7x interest coverage providing financial flexibility
- Positive free cash flow generation of 7.6M with 3.9% FCF margin despite capital intensity
- Low financial risk with only 11.9M long-term debt relative to 117.6M stockholders equity
- Strong balance sheet with low debt-to-equity and ample liquidity
- Consistent profitability supported by 39.4% gross margin and positive operating cash flow
- Positive free cash flow generation with manageable interest burden
ACU Stock Risks: Acme United Corp. Investment Risks
- Anemic revenue growth of only 1.1% YoY signals weak market demand or competitive pressures in mature hardware sector
- Thin operating margin of 7.5% leaves limited room for operational missteps or cost increases
- Low returns on equity (8.7%) and assets (6.0%) suggest capital is not generating attractive returns relative to deployed assets
- Capital expenditure of 10.7M consuming 59% of operating cash flow may indicate aging assets or necessary reinvestment needs
- Modest net margin of 5.2% provides minimal earnings cushion during economic downturns
- Revenue and net income growth are only slightly above flat, limiting operating leverage
- Net margin and ROE are modest, suggesting limited efficiency upside at current scale
- Low cash balance relative to revenue means working capital execution remains important despite strong ratios
Key Metrics to Watch
- Revenue growth trajectory and gross margin stability as indicators of pricing power and market demand
- Operating margin expansion potential through cost discipline or operational leverage
- Free cash flow sustainability and conversion rates relative to net income
- Capital expenditure efficiency and whether investments drive future revenue growth
- Free cash flow margin and cash conversion from earnings
- Revenue growth and operating margin expansion
Acme United Corp. (ACU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.9% FCF margin may limit capital allocation flexibility. Strong liquidity with a 4.21x current ratio provides a solid financial cushion.
ACU Profit Margin, ROE & Profitability Analysis
ACU vs Market Sector: How Acme United Corp. Compares
How Acme United Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Acme United Corp. Stock Overvalued? ACU Valuation Analysis 2026
Based on fundamental analysis, Acme United Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Acme United Corp. Balance Sheet: ACU Debt, Cash & Liquidity
ACU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Acme United Corp.'s revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $2.45 reflects profitable operations.
ACU Revenue Growth, EPS Growth & YoY Performance
ACU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $48.2M | $1.9M | $0.46 |
| Q2 2025 | $54.0M | $4.5M | $1.09 |
| Q1 2025 | $45.0M | $1.6M | $0.39 |
| Q3 2024 | $48.2M | $2.2M | $0.54 |
| Q2 2024 | $53.3M | $3.4M | $0.96 |
| Q1 2024 | $45.0M | $990.0K | $0.28 |
| Q3 2023 | $49.7M | $64.0K | $0.02 |
| Q2 2023 | $53.3M | $2.7M | $0.71 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Acme United Corp. Dividends, Buybacks & Capital Allocation
ACU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Acme United Corp. (CIK: 0000002098)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ACU
What is the AI rating for ACU?
Acme United Corp. (ACU) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ACU's key strengths?
Claude: Exceptional liquidity position with 4.21x current ratio and 1.59x quick ratio indicating strong ability to meet short-term obligations. Conservative capital structure with 0.10x debt/equity ratio and 8.7x interest coverage providing financial flexibility. ChatGPT: Strong balance sheet with low debt-to-equity and ample liquidity. Consistent profitability supported by 39.4% gross margin and positive operating cash flow.
What are the risks of investing in ACU?
Claude: Anemic revenue growth of only 1.1% YoY signals weak market demand or competitive pressures in mature hardware sector. Thin operating margin of 7.5% leaves limited room for operational missteps or cost increases. ChatGPT: Revenue and net income growth are only slightly above flat, limiting operating leverage. Net margin and ROE are modest, suggesting limited efficiency upside at current scale.
What is ACU's revenue and growth?
Acme United Corp. reported revenue of $196.5M.
Does ACU pay dividends?
Acme United Corp. pays dividends, with $2.3M distributed to shareholders in the trailing twelve months.
Where can I find ACU SEC filings?
Official SEC filings for Acme United Corp. (CIK: 0000002098) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ACU's EPS?
Acme United Corp. has a diluted EPS of $2.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ACU a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Acme United Corp. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ACU stock overvalued or undervalued?
Valuation metrics for ACU: ROE of 8.7% (sector avg: 15%), net margin of 5.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ACU stock in 2026?
Our dual AI analysis gives Acme United Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ACU's free cash flow?
Acme United Corp.'s operating cash flow is $18.2M, with capital expenditures of $10.7M. FCF margin is 3.9%.
How does ACU compare to other Market stocks?
Vs Default sector averages: Net margin 5.2% (avg: 12%), ROE 8.7% (avg: 15%), current ratio 4.21 (avg: 1.8).