April 20, 2021
4 minutes of reading
This story originally appeared on MarketBeat
One of the first names to appear on the alphabetical list of US companies in NYSE, Acme United (NYSEAMERICAN: ACUis also one of the last stocks on investor radar. However, despite the normal company name, Acme United has brought in some extraordinary profits for its shareholders.
Shares are up 67% in 2019, 27% last year and are up 31% so far, but Acme United is still a little-known small cap company. Is it safe to jump into the belt of a first aid product supplier?
Let’s learn more about the company, how it did business and where it can lead.
What does Acme United do?
For over 150 years, Connecticut-based Acme United has provided measuring, cutting, grinding, coating and first aid products to a wide range of consumers and industrial markets in the US, Canada, Europe and Asia. . It owns a portfolio of top brands such as PhysiciansCare first aid kits, Camillus knives, Wescott scissors and ruler used in home, school, office, outdoor and various industrial environments. From health workers and teachers to fishermen and construction workerAcme United products are highly appreciated by customers for their functionality, reliability and, above all, safety.
To say Acme United is on the rise is an understatement. The company achieved record sales in 11 years thanks to the introduction of new products and grabbing market share from competitors. Much of the growth has come from acquisitions, an area in which the company excels.
The most recent additions to the family are First Aid Central and Med Nap. Both companies were acquired last year to enhance business first aid and safety. First Aid Central, a Canadian supplier of first aid kits and safety products, came right away income accretion. Med-Nap is a US supplier of antiseptic preparation pads and paper towels whose income is expected to increase this year.
How did Acme United perform in the first quarter?
Aside from recent acquisitions, Acme United has been the beneficiary of increased demand during the COVID-19 period. Increased interest in public health and safety has led to record sales of first aid and safety products. Meanwhile, with people spending more time in great outdoors These days, fishing tools and hunting knives are also in record demand. The craft market is also a sales driver as people have new interests during a pandemic.
One of two punches in record sales of entertainment and safety products resulted in 15% revenue growth and 47% net income growth in 2020. This continued in the first quarter of the year. year 2021 by Acme United.
Acme United kicked off this week by announcing that first-quarter revenue jumped 22% to $ 43.5 million. Net income reached $ 2.05 million, 60% higher than the previous year period, marking an increase in outstanding profit growth in 2020. The result is a contribution to profits from merchants. First Aid Central and Med-Nap brands have been acquired.
Sales were particularly strong in Europe, which had a record quarter. In terms of product line, Westcott cutting tools and DMT grinders are strong areas. DMT grinders are known to have a high diamond content and are increasingly purchased at home by chefs as well as culinary professionals. The launch of new first aid items also boosted sales as consumers, workplaces and industrial customers continue to purchase health and safety related products.
Will Acme United shares continue to rise?
There are only two research firms including small stocks – DA Davidson and Singular Research. The lack of coverage from the seller is a good thing as Acme United will continue to fly under control and provide good growth potential for company followers.
Acme United has a strong portfolio of first aid and trim brands. It also has a diverse customer base both geographically and in the end market. Given the company’s growth track record and the defensive nature of many of its products, it should be able to find growth no matter what economic climate we find ourselves in this decade.
It’s not a high growth company at all because first aid kits and safety towing kits are not highly profitable commodities. However, to increase sales by 8% over the past five years is no small feat – and more importantly, likely to repeat itself over the next five years.
In terms of pricing, Acme United trades about 16 times the final earnings, close to the highest level in a five-year range. However, it is possible to expand multiple times with the growth potential ahead both from product expansion and cumulative acquisitions. Shares also come with 1.4%. dividend yield, a rare property in the microscopic exponential universe.
So for now, Acme United’s usual name is suitable for investors. But it may not be long before the stock hits more watch lists.
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