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Enerpac Tool Group (STU:PW9) Financial Strength : 7 (As of Feb. 2024)


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What is Enerpac Tool Group Financial Strength?

Enerpac Tool Group has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Enerpac Tool Group's Interest Coverage for the quarter that ended in Feb. 2024 was 8.06. Enerpac Tool Group's debt to revenue ratio for the quarter that ended in Feb. 2024 was 0.44. As of today, Enerpac Tool Group's Altman Z-Score is 4.96.


Competitive Comparison of Enerpac Tool Group's Financial Strength

For the Specialty Industrial Machinery subindustry, Enerpac Tool Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Enerpac Tool Group's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Enerpac Tool Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Enerpac Tool Group's Financial Strength falls into.



Enerpac Tool Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Enerpac Tool Group's Interest Expense for the months ended in Feb. 2024 was €-3.4 Mil. Its Operating Income for the months ended in Feb. 2024 was €27.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was €222.4 Mil.

Enerpac Tool Group's Interest Coverage for the quarter that ended in Feb. 2024 is

Interest Coverage=-1*Operating Income (Q: Feb. 2024 )/Interest Expense (Q: Feb. 2024 )
=-1*27.735/-3.44
=8.06

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Enerpac Tool Group's Debt to Revenue Ratio for the quarter that ended in Feb. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Feb. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(4.635 + 222.406) / 513.324
=0.44

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Enerpac Tool Group has a Z-score of 4.96, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.96 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Enerpac Tool Group  (STU:PW9) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Enerpac Tool Group has the Financial Strength Rank of 7.


Enerpac Tool Group Financial Strength Related Terms

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Enerpac Tool Group (STU:PW9) Business Description

Traded in Other Exchanges
Address
N86 W12500 Westbrook Crossing, Menomonee Falls, WI, USA, 53051
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.

Enerpac Tool Group (STU:PW9) Headlines

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