Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Enerpac Tool Group EPAC in comparison to its major competitors within the Machinery industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
Enerpac Tool Group Background
Enerpac Tool Group, previously known as Actuant, provides high-precision tools, controlled-force products, and solutions for precise heavy lifting. The company operates through two segments: industrial tools and services and other. It categorizes its revenue into two parts: product sales and services, which include manpower services and rentals. Product sales is the largest contributor to the company's total revenue. Geographically, the company operates in the United States, Asia, Australia, Europe, Middle East, and other areas. The U.S. makes up the largest contribution to the company's total revenue.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Enerpac Tool Group Corp | 27.12 | 5.96 | 3.75 | 7.34% | $0.04 | $0.08 | -3.75% |
| The Timken Co | 16.99 | 2.09 | 1.28 | 3.56% | $0.23 | $0.37 | -7.07% |
| Chart Industries Inc | 53.11 | 1.85 | 1.50 | 1.89% | $0.23 | $0.35 | 14.56% |
| Gates Industrial Corp PLC | 18.95 | 1.45 | 1.35 | 2.22% | $0.18 | $0.36 | -5.43% |
| Franklin Electric Co Inc | 25.09 | 3.77 | 2.34 | 4.82% | $0.09 | $0.2 | -4.55% |
| Kadant Inc | 32.19 | 4.55 | 3.65 | 3.94% | $0.06 | $0.12 | 12.12% |
| Enpro Inc | 77.37 | 2.29 | 3.20 | 1.88% | $0.07 | $0.12 | -1.81% |
| Mueller Water Products, Inc. | 26 | 4.04 | 2.54 | 6.12% | $0.08 | $0.13 | 9.22% |
| ESCO Technologies Inc | 30.86 | 2.57 | 3.08 | 2.48% | $0.05 | $0.1 | 4.84% |
| John Bean Technologies Corp | 20.80 | 1.86 | 1.73 | 2.04% | $0.05 | $0.14 | -5.94% |
| Albany International Corp | 25.52 | 2.88 | 2.24 | 2.55% | $0.07 | $0.11 | 21.11% |
| Standex International Corp | 28.49 | 3.36 | 2.91 | 3.16% | $0.03 | $0.07 | -4.32% |
| Kennametal Inc | 18.45 | 1.58 | 0.99 | 2.96% | $0.1 | $0.17 | -1.26% |
| Hillman Solutions Corp | 313.67 | 1.57 | 1.25 | 1.07% | $0.06 | $0.18 | -0.15% |
| Tennant Co | 16.30 | 2.86 | 1.43 | 4.5% | $0.05 | $0.14 | 2.89% |
| Helios Technologies Inc | 49.82 | 1.70 | 1.78 | 1.58% | $0.04 | $0.07 | -3.38% |
| Hyster Yale Inc | 6.13 | 2.30 | 0.25 | 14.42% | $0.11 | $0.26 | 7.11% |
| Energy Recovery Inc | 51.94 | 4.80 | 7.93 | -0.3% | $-0.0 | $0.02 | 31.25% |
| Gorman-Rupp Co | 29.47 | 2.82 | 1.54 | 2.34% | $0.03 | $0.05 | -0.88% |
| Columbus McKinnon Corp | 20.68 | 1.07 | 0.94 | 0.98% | $0.03 | $0.09 | 1.8% |
| Proto Labs Inc | 31.94 | 1.11 | 1.54 | 0.66% | $0.01 | $0.06 | 2.75% |
| Omega Flex Inc | 24.48 | 5.82 | 4.45 | 5.61% | $0.01 | $0.02 | -4.7% |
| Mayville Engineering Co Inc | 37.55 | 1.66 | 0.63 | 1.6% | $0.02 | $0.02 | 17.74% |
| Average | 43.45 | 2.64 | 2.21 | 3.19% | $0.07 | $0.14 | 3.9% |
After thoroughly examining Enerpac Tool Group, the following trends can be inferred:
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The stock's Price to Earnings ratio of 27.12 is lower than the industry average by 0.62x, suggesting potential value in the eyes of market participants.
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It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 5.96 which exceeds the industry average by 2.26x.
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The stock's relatively high Price to Sales ratio of 3.75, surpassing the industry average by 1.7x, may indicate an aspect of overvaluation in terms of sales performance.
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With a Return on Equity (ROE) of 7.34% that is 4.15% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
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With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $40 Million, which is 0.57x below the industry average, the company may face lower profitability or financial challenges.
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With lower gross profit of $80 Million, which indicates 0.57x below the industry average, the company may experience lower revenue after accounting for production costs.
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The company's revenue growth of -3.75% is significantly lower compared to the industry average of 3.9%. This indicates a potential fall in the company's sales performance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By evaluating Enerpac Tool Group against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
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Enerpac Tool Group is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.54.
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This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
Key Takeaways
For Enerpac Tool Group in the Machinery industry, the PE, PB, and PS ratios indicate that the company is undervalued compared to its peers. However, the high ROE suggests strong profitability potential. The low EBITDA and gross profit ratios may indicate operational inefficiencies, while the low revenue growth suggests limited expansion opportunities.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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