ACU - Acme United: Shares Haven't Seen Enough Upside To Justify A Downgrade Just Yet
2024-04-16 13:54:20 ET
Summary
- Acme United Corporation shares have seen a 9.4% increase since the last analysis, falling short of the broader market's 11.7% increase.
- Revenue for the company declined by 5% in the fourth quarter of 2023, with sales dropping in the U.S. and Europe but growing in Canada.
- Despite the sales decline, which was also due to an asset sale, the company's profitability improved, with adjusted profits almost tripling and cash flow growing on a year-over-year basis.
My, how time flies! It seems like only last week that I conducted my first analysis on Acme United Corporation ( ACU ), a company that operates as a supplier of first aid and medical products, as well as of sewing and paper crafting tools. But that analysis was over four months ago in December 2023. Operationally speaking, I found the firm interesting. Not everything about the enterprise was perfect. But the general trajectory seen during the 2023 fiscal year was promising. How cheap shares looked on a forward basis ultimately led me to take an optimistic view of the enterprise....
Acme United: Shares Haven't Seen Enough Upside To Justify A Downgrade Just Yet