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1. Company Snapshot

1.a. Company Description

Enerpac Tool Group Corp.manufactures and sells a range of industrial products and solutions in the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, Brazil, and internationally.It operates in two segments, Industrial Tools & Services (IT&S) and Other.


The IT&S segment designs, manufactures, and distributes branded hydraulic and mechanical tools; and provides services and tool rentals to the infrastructure, industrial maintenance, repair and operations, oil and gas, mining, renewable energy, and construction markets.It also offers branded tools and engineered heavy lifting technology solutions, and hydraulic torque wrenches; maintenance and manpower services; high-force hydraulic and mechanical tools, including cylinders, pumps, valves, and specialty tools; and bolt tensioners and other miscellaneous products.This segment markets its branded tools and services primarily under the Enerpac, Hydratight, Larzep, and Simplex brands.


The Other segment designs and manufactures synthetic ropes and biomedical textiles.The company was formerly known as Actuant Corporation and changed its name to Enerpac Tool Group Corp.in January 2020.


Enerpac Tool Group Corp.was incorporated in 1910 and is headquartered in Menomonee Falls, Wisconsin.

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1.b. Last Insights on EPAC

Enerpac Tool Group Corp.'s recent performance was negatively impacted by missed adjusted earnings per share estimates in Q1 2025, driven by mixed profitability metrics and high valuation multiples. Despite positive financial performance and structural changes, the company's shares remain expensive, justifying a 'hold' rating. The 2.3% revenue growth was primarily driven by the Industrial Tools & Services segment, but was offset by a 0.8% decline in organic sales. The company's high valuation multiples and mixed profitability metrics remain concerns, suggesting that the recent earnings release may not be enough to address these issues.

1.c. Company Highlights

2. Enerpac Tool Group Delivers Resilient Q3 Despite Macro Headwinds

Enerpac Tool Group reported a solid third quarter for fiscal 2025, with total revenue growing 6% year-over-year to $159 million, driven by a 2% organic increase. The company’s adjusted EPS rose 9% to $0.51, beating consensus estimates of $0.47, supported by higher earnings, a lower tax rate, and a reduced share count. Gross profit margin, however, declined 140 basis points to 50.4%, primarily due to service project mix and the inclusion of DTA. Adjusted EBITDA margin also saw a 50 basis-point decline to 25.9%, despite a 3.4% increase in absolute EBITDA. SG&A as a percentage of sales improved 160 basis points to 25.5%, reflecting the effectiveness of restructuring efforts.

Publication Date: Jul -02

📋 Highlights
  • Total Revenue Growth: 6% year-over-year increase to $159 million, with a 2% organic growth.
  • Regional Performance: Americas and APAC regions delivered strong growth, while EMEA saw a high single-digit organic decline.
  • Cortland Biomedical Growth: 19% growth driven by new product launches and demand in diagnostics, bioprocessing, and robotic surgery.
  • Gross Profit Margin: Declined 140 basis points to 50.4%, impacted by service project mix and DTA inclusion.
  • Adjusted EBITDA and Margins: 3.4% increase in adjusted EBITDA, with a 50 basis point margin decline to 25.9%.

Regional Performance and Segment Highlights

The Americas and APAC regions delivered strong growth, while EMEA faced a high single-digit organic decline. Cortland Biomedical, part of the Other segment, stood out with 19% growth, driven by new product launches and strong demand in diagnostics, bioprocessing, and robotic surgery. This segment’s performance underscores Enerpac’s diversification strategy and ability to capitalize on niche markets. As CEO Paul Sternthal noted, "Our diversified end markets and geographic reach continue to be a competitive strength, allowing us to navigate macroeconomic uncertainty effectively."

Restructuring and Financial Discipline

The company recorded a $5.9 million restructuring charge, primarily related to severance and lease impairment tied to its headquarters relocation. Despite this, Enerpac maintained a strong balance sheet, with net debt of $50 million and a net debt-to-adjusted EBITDA ratio of 0.4. Total liquidity stood at $539 million, providing ample flexibility to invest in growth initiatives and return capital to shareholders. Free cash flow for the first three quarters was $40 million, with full-year guidance maintained at $85 million to $95 million.

Valuation and Strategic Outlook

Currently trading at a P/E ratio of 22.24 and a P/S ratio of 3.42, Enerpac’s valuation reflects its growth prospects and disciplined capital allocation. The company repurchased 330,000 shares for $14 million during the quarter, highlighting its commitment to shareholder value creation. Management remains focused on profitable growth, innovation, and strategic M&A, even as macroeconomic uncertainty persists. With a robust innovation pipeline and ongoing integration of the DTA acquisition, Enerpac is well-positioned to sustain momentum in fiscal 2026, with analysts forecasting 6.2% revenue growth next year.

3. NewsRoom

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Rep. Gilbert Ray Cisneros, Jr. Purchases Shares of NVIDIA Corporation (NASDAQ:NVDA)

Nov -24

Source: defenseworld.net

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StandardAero (NYSE:SARO) Stock Acquired Rep. Gilbert Ray Cisneros, Jr.

Nov -21

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Buys Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD) Shares

Nov -21

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Sells Off Shares of Baldwin Insurance Group, Inc. (NASDAQ:BWIN)

Nov -21

Source: defenseworld.net

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Bristol Myers Squibb (NYSE:BMY) Stock Unloaded Rep. Gilbert Ray Cisneros, Jr.

Nov -21

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Buys AeroVironment, Inc. (NASDAQ:AVAV) Shares

Nov -21

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Sells Off Shares of Artivion, Inc. (NYSE:AORT)

Nov -21

Source: defenseworld.net

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Rep. Gilbert Ray Cisneros, Jr. Purchases Shares of Alibaba Group Holding Limited (NYSE:BABA)

Nov -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.81%)

6. Segments

Industrial Tools & Services

Expected Growth: 0.8%

Enerpac Tool Group Corp.'s Industrial Tools & Services segment growth of 0.8 is driven by increasing demand for hydraulic torque wrenches and other precision tools in the oil and gas industry, as well as growth in the aerospace and infrastructure markets. Additionally, the company's focus on innovation and product development has led to the introduction of new products, further contributing to segment growth.

Other Segment

Expected Growth: 0.9%

Enerpac Tool Group Corp.'s Other Segment growth of 0.9% is driven by increasing demand for industrial tools and services, expansion into new geographic markets, and strategic acquisitions. Additionally, the segment benefits from a diversified customer base and a focus on operational efficiency, which helps to offset raw material cost inflation and competitive pricing pressures.

7. Detailed Products

Hydraulic Tools

Enerpac offers a wide range of hydraulic tools, including hydraulic pumps, cylinders, and valves, designed for heavy-lifting, pressing, and assembly applications.

Bolting Tools

Enerpac's bolting tools include hydraulic and pneumatic wrenches, sockets, and pumps, designed for tightening and loosening bolts in various industries.

Workholding Solutions

Enerpac's workholding solutions include hydraulic and pneumatic clamping systems, designed to securely hold workpieces in place during manufacturing and assembly processes.

Lifting Systems

Enerpac's lifting systems include hydraulic and mechanical lifting equipment, designed for heavy-lifting applications in various industries.

Control Systems

Enerpac's control systems include hydraulic and electrical control systems, designed to manage and monitor industrial processes and equipment.

Service and Repair

Enerpac offers service and repair solutions for its products, including maintenance, repair, and calibration services.

8. Enerpac Tool Group Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Enerpac Tool Group Corp. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Enerpac Tool Group Corp. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Enerpac Tool Group Corp. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Enerpac Tool Group Corp. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Enerpac Tool Group Corp. is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.59%
Debt Cost 7.43%
Equity Weight 60.41%
Equity Cost 9.92%
WACC 8.94%
Leverage 65.55%

11. Quality Control: Enerpac Tool Group Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Graham

A-Score: 5.1/10

Value: 3.3

Growth: 7.9

Quality: 5.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Enerpac Tool

A-Score: 5.1/10

Value: 4.5

Growth: 7.8

Quality: 6.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Thermon

A-Score: 4.6/10

Value: 5.2

Growth: 5.8

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Park-Ohio

A-Score: 4.3/10

Value: 8.5

Growth: 3.9

Quality: 2.7

Yield: 5.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Standex

A-Score: 4.2/10

Value: 1.5

Growth: 4.0

Quality: 5.4

Yield: 1.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Twin Disc

A-Score: 4.2/10

Value: 6.1

Growth: 4.8

Quality: 3.6

Yield: 1.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.18$

Current Price

37.18$

Potential

-0.00%

Expected Cash-Flows