SHELTON, Conn. - Acme United Corporation (NYSE American: ACU), a leading supplier of safety solutions and cutting technology, has declared a quarterly cash dividend for its stockholders. The company announced on Thursday that a dividend of 15 cents per share will be distributed on July 23, 2024, to shareholders who are on record as of the close of business on July 2, 2024.
This move reflects the company's continued commitment to providing value to its shareholders. Acme United is recognized for its diverse range of products, catering to various markets including school, home, office, hardware, sporting goods, and industrial sectors. Its portfolio of brands includes First Aid Only®, First Aid Central®, PhysiciansCare®, Spill Magic®, Westcott®, Clauss®, DMT®, Med-Nap, Safety Made, and Elite.
While the dividend announcement is a sign of Acme United's current financial health, the company also cautions investors regarding forward-looking statements. These statements, which often include terms like "may," "might," "will," and "anticipate," are subject to a multitude of risks and uncertainties that could cause actual results to differ from expectations.
These risks include global economic conditions, inflation, interest rates, the impact of wars such as those in Ukraine and the Middle East, supply chain disruptions, labor costs, currency fluctuations, changes in consumer spending habits, competition, technological changes, and the company's ability to manage growth and integrate new acquisitions.
Investors are advised to consider these factors, along with the company's recent dividend declaration, when making investment decisions. The information regarding the dividend and the company's outlook is based on a press release statement from Acme United Corporation.
In other recent news, Acme United Corporation has been making significant moves. The company recently reported robust earnings for the first quarter of 2024, despite a slight dip in net sales. Net income surged by 65% to $1.6 million, with earnings per share rising by 39% to $0.39. These results came even as net sales decreased by 2% to $45 million, primarily due to the divestiture of its Camillus and Cuda hunting and fishing business.
In addition to its earnings report, Acme United has also expanded its footprint with the acquisition of Elite First Aid Inc., a key player in the tactical and emergency response products industry. This move is expected to broaden Acme United's sales of emergency response products to its existing customer base and penetrate new markets. The terms of the acquisition have not been disclosed, but Elite First Aid reported revenues of around $4.2 million in 2023.
These are just a few of the recent developments for Acme United. The company anticipates meaningful growth in sales starting in the second quarter of 2024, thanks to new partnerships and product shipments to major retailers in the U.S. and Canada. Also, continued investments in manufacturing and automation are expected to improve profitability. These strategic moves set a positive tone for the future of Acme United.
InvestingPro Insights
Acme United Corporation's (NYSE American: ACU) recent dividend declaration not only demonstrates its consistent shareholder value proposition but also underscores the company's financial discipline. An impressive streak of maintaining dividend payments for 21 consecutive years, as noted in the InvestingPro Tips, reflects a stable and investor-friendly corporate policy. The company's ability to raise its dividend for 3 consecutive years amidst various economic challenges speaks volumes about its financial resilience.
From a valuation standpoint, Acme United is currently trading at a low earnings multiple, with a P/E Ratio (Adjusted) of 21.8 as of the last twelve months as of Q1 2024, according to InvestingPro Data. This may suggest that the stock is undervalued relative to its earnings, providing a potentially attractive entry point for value investors. Moreover, the company's solid fundamentals are highlighted by its gross profit margin of 38.47% and a Return on Assets of 11.35% for the same period.
While the stock has experienced a decline over the past month, with a 1 Month Price Total Return of -12.57%, it's important to note that Acme United has shown a strong 1 Year Price Total Return of 39.77%. Investors seeking to explore further details on the company's financial health and potential investment opportunities can find additional InvestingPro Tips on the platform. A total of 7 tips are available, which can be accessed by visiting https://www.investing.com/pro/ACU. To enhance your investing strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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