ACME UNITED CORP

ACME UNITED CORP has a liquidity position that is characterized by a current ratio of 4.57, indicating a strong ability to meet short-term obligations with its current assets. However, the company reported negative operating cash flow of -$2.23 million in Q1 2026, which is a concern for its short-term liquidity. The company's price-to-book ratio is 2.32, suggesting that the market values the company at a premium to its book value. The price-to-earnings ratio is 171.81, which is significantly higher than the industry median, indicating that the company is currently overvalued relative to its earnings. In terms of profitability, ACME UNITED CORP has a return on equity of 0.84% and a return on assets of 0.5%, which are both below the industry median. The company's operating margin is 3.34%, which is also below the industry median, indicating that the company is not as efficient in converting revenue into profit as its peers. The company's net profit margin is 1.88%, which is also below the industry median, further highlighting the company's challenges in maintaining profitability. The company's revenue is concentrated in North America, with the majority of its sales coming from this region. The company has a significant presence in the office products market, but it is also exposed to risks associated with changes in customer requirements and the volume of sales to principal customers. The company's reliance on third-party distributors also poses a risk to its revenue stability. ACME UNITED CORP's growth trajectory is mixed. The company has a revenue growth rate of 0% in the current fiscal year, which is below the industry median. The company's capital expenditure of $1.89 million in Q1 2026 indicates that it is investing in its operations, but the negative free cash flow of -$4.12 million suggests that the company is not generating enough cash to fund its operations and investments without relying on external financing. The company's debt-to-equity ratio is 0.28, which is below the industry median, indicating that the company is not heavily leveraged. The company faces several risk factors, including the potential for dilution due to the significant difference between its basic and diluted share counts. The company's net cash is negative after subtracting total debt, which is a liquidity risk. The company is also subject to industry demand fluctuations and the emergence of new competitors or consolidation of existing competitors, which could impact its market position. The company's liquidity is rated as medium, and the risk of dilution is high, which could affect shareholder value. Recent events include the acquisition of My Medic, which was accounted for as a business combination. The company also purchased a 77,000 square foot manufacturing and distribution center in Mt. This expansion is intended to provide liquidity for operating activities, growth, acquisitions, dividends, share repurchases, and other business activities. The company's expectations for future net revenues are based on its estimates of future demand, which is subject to change.