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Acme United Corporation (ACU)

Company Dividend Discount ModelIndustry: Household & Personal ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$37.29 - $80.13$53.19
Multi-Stage$30.66 - $33.51$32.06
Blended Fair Value$42.63
Current Price$41.18
Upside3.51%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.67%7.64%0.540.480.460.440.390.390.360.340.320.29
YoY Growth--11.48%4.71%6.19%11.69%-0.26%8.36%5.42%5.68%11.17%12.67%
Dividend Yield--1.36%1.03%2.01%1.29%0.99%1.93%2.20%1.64%1.16%1.78%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)8.12
(-) Cash Dividends Paid (M)2.30
(=) Cash Retained (M)5.82
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.621.010.61
Cash Retained (M)5.825.825.82
(-) Cash Required (M)-1.62-1.01-0.61
(=) Excess Retained (M)4.204.805.21
(/) Shares Outstanding (M)4.114.114.11
(=) Excess Retained per Share1.021.171.27
LTM Dividend per Share0.560.560.56
(+) Excess Retained per Share1.021.171.27
(=) Adjusted Dividend1.581.731.82
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.67%5.67%6.67%
Fair Value$37.29$53.19$80.13
Upside / Downside-9.44%29.16%94.57%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)8.128.589.069.5810.1210.6911.01
Payout Ratio28.31%40.65%52.99%65.32%77.66%90.00%92.50%
Projected Dividends (M)2.303.494.806.267.869.6210.19

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate4.67%5.67%6.67%
Year 1 PV (M)3.173.203.23
Year 2 PV (M)3.964.034.11
Year 3 PV (M)4.684.824.96
Year 4 PV (M)5.345.555.76
Year 5 PV (M)5.946.236.53
PV of Terminal Value (M)103.08108.10113.31
Equity Value (M)126.17131.92137.90
Shares Outstanding (M)4.114.114.11
Fair Value$30.66$32.06$33.51
Upside / Downside-25.54%-22.14%-18.61%

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