Enerpac Tool Group (EPAC)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
$37.34+1.08%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-09-04
Warn: Primary pillar under pressure — Free cash flow generation: FCF guidance $100M-$110M vs $105M target.
Enerpac grows its Industrial Tool & Service sales about 6% yearly. Free cash flow is strong near $105 million. The company returns capital steadily with $51 million in share buybacks. Profit margins and earnings per share are stable and improving.
Growth in the EMEA service business is weak and restructuring progress is slow. Earnings misses could pressure margins. Market headwinds in the industrial sector may limit sales growth.
The price is about 28% below our fair value near $48. Analysts expect roughly 7% revenue growth, which aligns with management's 6% IT&S sales growth target. Our view is slightly more cautious on growth but sees value in the current price.
Breaks if: EMEA service losses widen or restructuring stalls through FY26
Breaks if: Free cash flow falls below $90 million in FY26
YoY IT&S product sales growth falls below 4% next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable company with a focus on growth and restructuring. The current thesis state is intact, but it faces mixed signals from the sector and its own execution quality.
The market seems to have priced in a neutral valuation, reflecting a low expectations gap compared to peers. There is a sense of fragility due to weak execution quality, but overall valuation appears justified.
Management is focused on expanding IT&S product sales, which have shown solid growth. However, the restructuring of the EMEA service business is progressing slowly, and there is a moderate risk of missing earnings expectations.
The thesis hinges on the performance of sector bellwethers like GEV, PH, and TT. If these companies continue to perform well, it could lift EPAC, but any negative guidance from them could pose a risk.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Share repurchases drop below $30 million per quarter
Overall, EPAC's position is stable, but it must navigate sector challenges and its own management priorities. Not investment advice.