Acme United Achieves 10th Consecutive Record Year
Acme United (US: ACU – $42.00) is a leading consumer products company with a focus on first aid and safety products, as well as cutting solutions, for commercial and industrial markets worldwide. The Company reached net sales of $43.3 million in the third quarter ended September 30, 2020, compared to $37.0 million for the same period of 2019, a solid increase of 17%.
During the first nine months of 2020, Acme United already set a strong performance, but the final quarter was truly the cherry on cake. The Company reported year-on-year revenue gains across every category and in every geography.
For the year ended December 31st, 2020, sales reached $164 million compared to 142.5 million in 2019, an increase of 15%. It comes as no surprise that Acme achieved record sales for the 10th consecutive year.
Net income for the year ended December 31, 2020 was $8.1 million or $2.31 per diluted share, compared to $5.5 million of net income or $1.60 per diluted share in the comparable period last year, an increase of 47% of net income and 44% in earnings per share.
Since the COVID-19 outbreak, kids aren’t having sports practices and people working at home have more free time, so it’s been an opportunity for families to reconnect with the outdoors. Hunting, camping and fishing is ideal for avoiding the virus because participants are outside and usually a good distance apart.
Although some people, who recently took up hunting or fishing, will return to their old habits once the pandemic ends, many of them will have (re)discovered hunting and spending time in nature. These will be returning consumers of Camillus knives and Cuda fishing gear that add growth beyond the pandemic
Acme United‘s strong financials make it possible for the Company to continue paying its attractive quarterly dividend. This is excellent news for long term shareholders.
We reiterate our buy recommendation for Acme United Corp. with a price target of $56.49, which is 34% above today’s stock price.
|Smallcaps.us Advice: Buy||Price Target: $61.57||Latest Company Report (pdf)|
|For important disclosures, please read our disclaimer.|