Wednesday, December 1, 2010
Acme United Dividend Stock Analysis
Incorporated in 1882, Acme has operations in the United States, Canada, Europe, Hong Kong and China.
Acme sells it's products under 4 main brands: Westcott, Clauss, Camillus, and Physicians Care.
The following chart shows the breakdown of revenue by region. As of 2009, 76% of sales came from the US and Asia.
Payout ratios in 2009, both eps and cash based, were below 30%
ACU has a strong current ratio of 5.26, and debt has shown some inconsistency over the years, but currently sits at a very reasonable 27.17% of total capital employed.
The current stock price of 9.65 has a trailing p/e of 11.35 and a forward p/e of 10.97. Using the 2009 dividend, ACU yields 2.07%. The expected 2010 dividend of 0.21 the yield is 2.17%.
ACU is trading above it's 5 year average high yield of 1.97%, and near it's 5 year average low p/e of 10.16.
I don't plan on initiating a position in ACU. At the very least I'll wait until I see a longer history of increasing dividends. After that time, I'll re-evaluate.
Full Disclosure: I do not own any ACU