Acme United Operating Margin vs. Return On Asset

ACU Stock  USD 44.07  0.51  1.17%   
Based on the measurements of profitability obtained from Acme United's financial statements, Acme United is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Acme United's ability to earn profits and add value for shareholders.

Acme United Operating Profit Margin

0.0354

Operating Cash Flow Sales Ratio is likely to gain to 0.16 in 2024, whereas Price To Sales Ratio is likely to drop 0.42 in 2024. At this time, Acme United's Operating Income is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 23.9 M in 2024, whereas Non Operating Income Net Other is likely to drop (232.8 K) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.270.3771
Way Down
Pretty Stable
Net Profit Margin0.09760.0929
Sufficiently Up
Slightly volatile
Operating Profit Margin0.03540.0689
Way Down
Slightly volatile
Pretax Profit Margin0.120.1187
Fairly Up
Slightly volatile
Return On Assets0.130.1192
Significantly Up
Slightly volatile
Return On Equity0.190.1818
Sufficiently Up
Slightly volatile
For Acme United profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Acme United to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Acme United utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Acme United's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Acme United over time as well as its relative position and ranking within its peers.
  
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Is Commercial Services & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Acme United. If investors know Acme will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Acme United listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.07)
Dividend Share
0.6
Earnings Share
5.06
Revenue Per Share
51.931
Quarterly Revenue Growth
(0.04)
The market value of Acme United is measured differently than its book value, which is the value of Acme that is recorded on the company's balance sheet. Investors also form their own opinion of Acme United's value that differs from its market value or its book value, called intrinsic value, which is Acme United's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Acme United's market value can be influenced by many factors that don't directly affect Acme United's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Acme United's value and its price as these two are different measures arrived at by different means. Investors typically determine if Acme United is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Acme United's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Acme United Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Acme United's current stock value. Our valuation model uses many indicators to compare Acme United value to that of its competitors to determine the firm's financial worth.
Acme United is number one stock in operating margin category among its peers. It also is number one stock in return on asset category among its peers reporting about  0.89  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Acme United is roughly  1.12 . At this time, Acme United's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Acme United by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Acme Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Acme United

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.06 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Acme United

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0542
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Acme Return On Asset Comparison

Acme United is currently under evaluation in return on asset category among its peers.

Acme United Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Acme United, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Acme United will eventually generate negative long term returns. The profitability progress is the general direction of Acme United's change in net profit over the period of time. It can combine multiple indicators of Acme United, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.7 M-1.8 M
Operating Income13.2 M13.8 M
Income Before Tax22.7 M23.9 M
Total Other Income Expense Net9.5 M10 M
Net Income17.8 M18.7 M
Income Tax Expense4.9 M5.2 M
Net Income Applicable To Common Shares3.5 M4.4 M
Net Income From Continuing OpsMM
Non Operating Income Net Other-221.8 K-232.8 K
Interest Income94 K89.3 K
Net Interest Income-3.4 M-3.3 M
Change To Netincome-164.5 K-156.3 K
Net Income Per Share 4.86  5.10 
Income Quality 1.62  1.17 
Net Income Per E B T 0.78  0.44 

Acme Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Acme United. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Acme United position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Acme United's important profitability drivers and their relationship over time.

Use Acme United in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Acme United position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Acme United will appreciate offsetting losses from the drop in the long position's value.

Acme United Pair Trading

Acme United Pair Trading Analysis

The ability to find closely correlated positions to Acme United could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Acme United when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Acme United - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Acme United to buy it.
The correlation of Acme United is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Acme United moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Acme United moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Acme United can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Additional Tools for Acme Stock Analysis

When running Acme United's price analysis, check to measure Acme United's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Acme United is operating at the current time. Most of Acme United's value examination focuses on studying past and present price action to predict the probability of Acme United's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Acme United's price. Additionally, you may evaluate how the addition of Acme United to your portfolios can decrease your overall portfolio volatility.