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Relative valuation derived from Materials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.0%
Sector: 3.3%
Dividend Analysis audit
GROWTH
1.49%
Trailing Yield
$1.49
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
24%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ACME UNITED CORP (ACU) receives a "Buy" rating with a composite score of 51.2/100, ranked #101 out of 4446 stocks. Key factor scores: Quality 50/100, Value 71/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
ACME UNITED CORP (ACU) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ACME UNITED CORP Do?
Acme United Corporation supplies first aid and safety, cutting, sharpening, and measuring products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. The company offers scissors, shears, knives, rulers, pencil sharpeners, paper trimmers, safety cutters, lettering products, glue guns, and other craft products under the Westcott brand name; and cutting tools under the Clauss brand. It also provides fixed blades, folding knives, sight cutting tools, and tactical tools under the Camillus brand; fishing tools and knives, as well as cut and puncture resistant gloves, telescopic landing nets, net containment systems, and tools and fishing gaffs under the Cuda brand; and sharpening tools under the DMT brand. In addition, the company offers first aid kit and safety solutions under the First Aid Only brand; portable eyewash solution and over-the-counter medication, including active ingredients aspirin, acetaminophen, and ibuprofen under the PhysiciansCare brand; bodily fluid and spill clean-up solution under the Spill Magic brand; various first aid kit, refill, and safety supplies, including CPR kits, burn kits, and automotive and emergency first aid kits under the First Aid Central; and alcohol prep pads, alcohol wipes, benzalkonium chloride wipes, various antiseptic wipes, castile soaps, and lens cleaning wipes under the Med-Nap brand. It sells its products directly and through its independent manufacturer representatives to wholesale, contract, and retail stationery distributors; office supply super stores; school supply distributors; industrial distributors; wholesale florists; mass market and e-commerce retailers; and hardware chains, as well as sells a selection of products through its websites. The company was formerly known as Acme Shear Company and changed its name to Acme United Corporation in 1971. Acme United Corporation was founded in 1867 and is based in Shelton, Connecticut. ACME UNITED CORP (ACU) is classified as a micro-cap stock in the Materials sector, specifically within the Construction Materials industry. The company is led by CEO Walter C. Johnsen and employs approximately 650 people, headquartered in FAIRFIELD, Connecticut. With a market capitalization of $171M, ACU is one of the notable companies in the Materials sector.
ACME UNITED CORP (ACU) Stock Rating — Buy (April 2026)
As of April 2026, ACME UNITED CORP receives a Buy rating with a composite score of 51.2/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.ACU ranks #101 out of 4,446 stocks in our coverage universe. Within the Materials sector, ACME UNITED CORP ranks #5 of 284 stocks, placing it in the top 10% of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ACU Stock Price and 52-Week Range
ACME UNITED CORP (ACU) currently trades at $45.43. The stock lost $0.46 (1.0%) in the most recent trading session. The 52-week high for ACU is $47.31, which means the stock is currently trading -4.0% from its annual peak. The 52-week low is $35.31, putting the stock 28.6% above its annual trough. Recent trading volume was 233 shares, suggesting relatively thin trading activity.
Is ACU Overvalued or Undervalued? — Valuation Analysis
ACME UNITED CORP (ACU) carries a value factor score of 71/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 15.86x, compared to the Materials sector average of 26.50x — a discount of 40%. The price-to-book ratio stands at 1.42x, versus the sector average of 2.83x. The price-to-sales ratio is 0.85x, compared to 0.74x for the average Materials stock. On an enterprise value basis, ACU trades at 8.62x EV/EBITDA, versus 6.01x for the sector.
Based on these multiples, ACME UNITED CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
ACME UNITED CORP Profitability — ROE, Margins, and Quality Score
ACME UNITED CORP (ACU) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.0%, compared to the Materials sector average of 3.3%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 6.2% versus the sector average of 0.6%.
On a margin basis, ACME UNITED CORP reports gross margins of 39.4%, compared to 29.8% for the sector. The operating margin is 7.3% (sector: 6.0%). Net profit margin stands at 5.2%, versus 3.0% for the average Materials stock. Revenue growth is running at -11.5% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
ACU Debt, Balance Sheet, and Financial Health
ACME UNITED CORP has a debt-to-equity ratio of 45.0%, compared to the Materials sector average of 41.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.21x, indicating strong short-term liquidity. Total debt on the balance sheet is $19M. Cash and equivalents stand at $5M.
ACU has a beta of 0.52, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ACME UNITED CORP is 76/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
ACME UNITED CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, ACME UNITED CORP reported revenue of $197M and earnings per share (EPS) of $2.69. Net income for the quarter was $11M. Gross margin was 39.4%. Operating income came in at $15M.
In FY 2025, ACME UNITED CORP reported revenue of $197M and earnings per share (EPS) of $2.69. Net income for the quarter was $10M. Gross margin was 39.4%. Revenue grew 1.1% year-over-year compared to FY 2024. Operating income came in at $15M.
In Q3 2025, ACME UNITED CORP reported revenue of $49M and earnings per share (EPS) of $0.50. Net income for the quarter was $2M. Gross margin was 39.1%. Revenue grew 1.9% year-over-year compared to Q3 2024. Operating income came in at $3M.
In Q2 2025, ACME UNITED CORP reported revenue of $54M and earnings per share (EPS) of $1.26. Net income for the quarter was $5M. Gross margin was 41.0%. Revenue grew -2.6% year-over-year compared to Q2 2024. Operating income came in at $6M.
Over the past 8 quarters, ACME UNITED CORP has demonstrated a growth trajectory, with revenue expanding from $55M to $197M. Investors analyzing ACU stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ACU Dividend Yield and Income Analysis
ACME UNITED CORP (ACU) currently pays a dividend yield of 1.5%. At this yield, a $10,000 investment in ACU stock would generate approximately $$149.00 in annual dividend income. This compares to the Materials sector average dividend yield of 0.5%, meaning ACU offers above-average income for its sector. The net margin of 5.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
ACU Momentum and Technical Analysis Profile
ACME UNITED CORP (ACU) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 36/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 16/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ACU vs Competitors — Materials Sector Ranking and Peer Comparison
Comparing ACU against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ACU vs S&P 500 (SPY) comparison to assess how ACME UNITED CORP stacks up against the broader market across all factor dimensions.
ACU Next Earnings Date
No upcoming earnings date has been announced for ACME UNITED CORP (ACU) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ACU? — Investment Thesis Summary
The bull case for ACME UNITED CORP rests on several quantitative strengths. The value score of 71/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 76/100) reduces downside risk.
In summary, ACME UNITED CORP (ACU) earns a Buy rating with a composite score of 51.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ACU stock.
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Institutional Research Dossier
ACME UNITED CORP (ACU) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We maintain our Hold rating on Acme United (ACU). While the company exhibits attractive valuation metrics relative to its sector, particularly in P/E and EV/EBITDA, concerns regarding revenue contraction and inconsistent free cash flow generation temper our enthusiasm. The company's diverse brand portfolio and established market presence provide a degree of stability, but sustained revenue growth is crucial for a more optimistic outlook.
Acme United's strategic focus on first aid and safety products, coupled with its cutting and sharpening tools, positions it within relatively stable consumer staples categories. However, the recent revenue decline of 11.5% raises questions about the company's ability to maintain market share and adapt to evolving consumer preferences. The current valuation reflects these uncertainties, warranting a neutral stance until clearer signs of revenue stabilization and consistent profitability emerge.
Business Strategy & Overview
Acme United operates as a diversified supplier of cutting, sharpening, measuring, and first aid/safety products. The company's revenue streams are generated through a portfolio of well-known brands, including Westcott, Clauss, Camillus, Cuda, DMT, First Aid Only, PhysiciansCare, Spill Magic, First Aid Central, and Med-Nap. These brands cater to a wide range of end markets, spanning school, home, office, hardware, sporting goods, and industrial sectors. This diversification mitigates risk to some extent, as weakness in one segment can be offset by strength in another.
The company's strategic focus appears to be on expanding its presence in the first aid and safety market, as evidenced by its First Aid Only and PhysiciansCare brands. This segment benefits from relatively stable demand, driven by regulatory requirements and increasing awareness of workplace safety. Acme United distributes its products through a multi-channel approach, including wholesale distributors, retail chains, e-commerce platforms, and direct sales. This broad distribution network enhances market access and allows the company to reach a diverse customer base.
Acme United's business model relies on a combination of product innovation, brand management, and efficient supply chain operations. The company invests in research and development to introduce new products and improve existing ones. Brand management is crucial for maintaining brand equity and driving sales. Efficient supply chain operations are essential for minimizing costs and ensuring timely delivery of products. The company also leverages its e-commerce platform to expand its reach and enhance customer engagement.
The competitive landscape for Acme United is fragmented, with numerous players operating in each of its product categories. The company competes with both large, established companies and smaller, niche players. Key competitive factors include product quality, brand reputation, price, and distribution network. Acme United differentiates itself through its diverse brand portfolio, its focus on innovation, and its multi-channel distribution strategy. The company's ability to maintain its competitive position will depend on its ability to adapt to changing market conditions and meet the evolving needs of its customers.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-11.5%
Sector: 1.8%
-756% VS SCTR
Economic Moat Analysis
Acme United possesses a narrow economic moat, primarily derived from brand recognition and established distribution channels. The Westcott brand, in particular, enjoys strong brand equity in the school and office supplies market, providing a degree of pricing power and customer loyalty. Similarly, the First Aid Only brand benefits from its established presence in the first aid and safety market, where brand reputation is a key consideration for customers.
The company's extensive distribution network, which includes wholesale distributors, retail chains, and e-commerce platforms, also contributes to its narrow moat. This network provides Acme United with a competitive advantage in terms of market access and reach. However, the company's moat is not particularly wide, as its products are generally not highly differentiated and face competition from numerous other players.
Switching costs for Acme United's products are relatively low, as customers can easily switch to alternative brands without incurring significant costs or inconvenience. Network effects are also limited, as the value of the company's products does not increase significantly as more customers use them. While the company's brands possess some intangible value, they are not strong enough to create a wide moat.
The company's cost advantages are also limited, as it does not appear to have any significant scale advantages or proprietary technology that would allow it to produce its products at a significantly lower cost than its competitors. Efficient scale is not a major factor in this industry, as there are no significant barriers to entry for new players. Therefore, while Acme United possesses a narrow moat, it is not particularly strong or durable.
Financial Health & Profitability
Acme United's financial health presents a mixed picture. While the company exhibits strong liquidity, as evidenced by its current ratio of 4.21, its revenue growth has been negative, with a decline of 11.5% in the most recent TTM period. This revenue contraction raises concerns about the company's ability to maintain its market share and generate sustainable growth. The company's gross margin of 39.4% and operating margin of 7.3% are relatively healthy, exceeding the sector averages of 30.2% and 6.0%, respectively. This suggests that the company is able to maintain profitability despite the revenue decline.
The company's return on equity (ROE) of 9.0% is also significantly higher than the sector average of 2.7%, indicating that the company is generating a higher return on its equity investments. However, the company's free cash flow (FCF) is negative, at -$3.91 million, which is a cause for concern. This suggests that the company is not generating enough cash to cover its operating expenses and capital expenditures. The company's total debt of $18.70 million is relatively low compared to its market capitalization of $165.32 million, resulting in a debt-to-equity ratio of 45.00, which is slightly higher than the sector average of 40.00.
Analyzing the quarterly financial history reveals some inconsistencies. While the gross margin has remained relatively stable, fluctuating between 37.5% and 41.0%, the operating margin has been more volatile, ranging from 4.8% to 11.8%. The net income has also fluctuated significantly, from $990,000 in Q1 2023 to $4.75 million in Q2 2025. The company's revenue has also been inconsistent, with some quarters showing growth and others showing decline. The lack of consistent revenue growth and the negative free cash flow are the primary concerns regarding the company's financial health.
Overall, Acme United's financial health is adequate but not exceptional. The company's strong liquidity and profitability are positive factors, but the negative revenue growth and free cash flow are causes for concern. The company needs to address these issues in order to improve its financial performance and generate sustainable value for its shareholders.
Valuation Assessment
Acme United's valuation appears attractive relative to its sector based on several key metrics. The company's P/E ratio of 16.1x is significantly lower than the sector average of 26.1x, suggesting that the stock is undervalued compared to its peers. Similarly, the company's EV/EBITDA ratio of 2.0x is substantially lower than the sector average of 5.2x, further supporting the notion that the stock is undervalued. However, it is crucial to consider the company's negative revenue growth and inconsistent free cash flow when assessing its valuation.
While the company's P/E and EV/EBITDA ratios are attractive, the negative revenue growth of 11.5% suggests that the company's earnings may decline in the future, which could negatively impact its valuation. The negative free cash flow also raises concerns about the company's ability to generate cash and fund its operations. A discounted cash flow (DCF) analysis, which is not possible with the provided data, would be necessary to determine the intrinsic value of the stock.
Considering the company's historical performance, the current valuation may be considered fair. The company's earnings have been volatile in recent years, and its revenue growth has been inconsistent. The stock's price has likely reflected these uncertainties. However, if the company can stabilize its revenue growth and generate consistent free cash flow, the stock could be undervalued at its current price.
In conclusion, Acme United's valuation is attractive relative to its sector based on P/E and EV/EBITDA ratios. However, the negative revenue growth and inconsistent free cash flow warrant caution. The stock may be fairly valued at its current price, but its future performance will depend on its ability to stabilize its revenue growth and generate consistent free cash flow. A more comprehensive valuation analysis, including a DCF analysis, would be necessary to determine the intrinsic value of the stock.
Risk & Uncertainty
Acme United faces several specific risks that could negatively impact its business and financial performance. One of the primary risks is the intense competition in its various product categories. The company competes with both large, established companies and smaller, niche players, which puts pressure on its pricing and market share. Increased competition could lead to lower sales, reduced margins, and decreased profitability.
Another risk is the company's reliance on key customers and distributors. A significant loss of business from one or more of these customers or distributors could have a material adverse effect on the company's revenue and earnings. The company's ability to maintain its relationships with these customers and distributors is crucial for its success.
The company is also exposed to risks related to its supply chain. Disruptions in the supply chain, such as raw material shortages or transportation delays, could negatively impact the company's ability to manufacture and deliver its products on time. This could lead to lost sales, increased costs, and damage to its reputation.
Fluctuations in foreign currency exchange rates could also impact the company's financial performance, as it generates a portion of its revenue from international markets. Adverse currency movements could reduce the value of its international sales and increase its costs. Finally, changes in government regulations, such as safety standards or labeling requirements, could increase the company's compliance costs and negatively impact its profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAcme United's low valuation multiples (P/E and EV/EBITDA) compared to the Materials sector suggest significant upside potential if the company can stabilize revenue.
BULL VIEWThe company's strong current ratio indicates a healthy liquidity position, providing a buffer against short-term economic headwinds and allowing for strategic investments.
BULL VIEWAcme United's established brands, particularly Westcott and First Aid Only, provide a competitive advantage and customer loyalty in their respective markets.
The Bear Case
BEAR VIEWAcme United's negative revenue growth and free cash flow raise serious concerns about its long-term sustainability and ability to generate shareholder value.
BEAR VIEWThe company's narrow economic moat makes it vulnerable to competition and pricing pressures, limiting its ability to maintain profitability.
BEAR VIEWThe high short interest suggests that a significant portion of investors believe the stock is overvalued and expect its price to decline.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ACU and 4,400+ other equities.
ACME UNITED CORP exhibits a 8% valuation discount relative to institutional benchmarks. This represents a balanced risk/reward profile based on current multiples.
Return on Assets
Efficiency of asset utilization
6.2%
Sector: 0.6%
Gross Margin
Pricing power and cost efficiency
39.4%
Sector: 29.8%
Operating Margin
Core business profitability
7.3%
Sector: 6.0%
Net Margin
Bottom-line profitability
5.2%
Sector: 3.0%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.49%
Yield Delta+204%
Income Projection audit
A $10,000 investment would generate approximately $149 annually in dividends at the current trailing rate.
