Enerpac Tool Group Corp. (EPAC) AI Stock Analysis

NYSE: EPACAI research summary: business, growth, valuation, analysts, bull and bear case.

EPAC AI stock analysis summary

AI Research

Enerpac Tool Group Corp. (EPAC) manufactures industrial hydraulic and mechanical tools as well as specialized synthetic ropes and textiles. Over the trailing twelve months, the company generated $634.1M in revenue with an operating margin of 24.7% and net income reaching $92.7M in FY2025. EPAC shares have fallen 16.6% over the past year, trailing the S&P 500.

Market cap
$1.81B
Revenue (TTM)
$634.1M
P/E
20.0x
fwd 17.2x
1Y return
-16.6%
S&P 500 16.8%
Avg. target
$48.00
36.5% vs last close

Bull case

  • Operating margin reached 22.6% in FY2025 and 24.7% for the trailing twelve months, showing significant expansion from 9.7% in FY2021.
  • Free cash flow grew to $91.9M in FY2025, supporting $68.7M in share buybacks and a 14.9% reduction in share count over 5 years.
  • Analysts maintain a mean price target of $48.00, representing 36.5% potential upside from the closing price of $35.17.

Bear case

  • Revenue growth has been moderate, posting a 5-year CAGR of 4.6% and a 1.5% decline in FY2024.
  • Shareholder returns have lagged broad markets, with a 1-year return of -16.6% compared to a 16.8% gain for the S&P 500.
  • The forward dividend yield is 0.11% with zero annualized growth over the past 5 years.

What Enerpac Tool does

Enerpac Tool Group Corp. manufactures and distributes industrial products and solutions across the United States, Europe, Asia, Australia, and other global regions. The company operates via two segments: Industrial Tools & Services (IT&S) and Other. IT&S designs, produces, and sells hydraulic and mechanical tools, heavy lifting systems, and hydraulic torque wrenches, alongside tool rental, maintenance, and manpower services for infrastructure, maintenance, energy, and construction industries. Brands include Enerpac, Hydratight, Larzep, and Simplex. The Other segment designs and manufactures synthetic ropes and biomedical textiles.

Growth and profitability

Enerpac Tool Group increased annual revenue from $528.7M in FY2021 to $616.9M in FY2025, delivering a 5-year revenue CAGR of 4.6%. Gross margin expanded from 46.0% in FY2021 to 49.6% in FY2025, while operating margin rose significantly from 9.7% to 22.6%. Annual net income grew from $38.1M in FY2021 to $92.7M in FY2025, with EPS advancing from $0.62 to $1.82. Free cash flow reached $91.9M in FY2025, up from $42.2M in FY2021. In the latest quarter ended May 31, 2026, quarterly revenue increased 5.6% year-over-year, while quarterly earnings grew 42.2% year-over-year.

EPAC income statement →

Balance sheet and cash flow

As of May 31, 2026, Enerpac Tool Group held $115.7M in cash and short-term investments against total debt of $184.8M, resulting in net debt of $69.1M. The debt-to-equity ratio stood at 0.44 with a current ratio of 2.67. In FY2025, operating cash flow reached $111.3M. Capital deployment in FY2025 included $19.3M in capital expenditures, $68.7M directed toward share buybacks, and $2.2M paid in dividends. The share count has decreased 14.9% over five years.

EPAC balance sheet →

Valuation and performance

At $35.17 per share, Enerpac Tool Group carries a market capitalization of $1.81B and an enterprise value of $1.91B. The stock trades at a trailing P/E of 20.0x and an EV/EBITDA of 12.7x, both lower than the median of its US-listed Industrials peers at 24.8x and 13.9x, respectively. Forward P/E is 17.2x, matching the peer median of 17.2x. Over the past year, the stock fell 16.6%, underperforming the 16.8% return of the S&P 500.

EPAC key metrics →

EPAC dividend

Enerpac Tool Group pays an annual dividend of $0.04 per share, offering a dividend yield of 0.11% with a payout ratio of 3.0%. The dividend has been paid for 22 consecutive years, though the 5-year annualized dividend growth is 0.0%. The last ex-dividend date occurred on October 6, 2026.

EPAC dividend history →

What analysts expect

Wall Street coverage includes 1 Strong Buy, 1 Buy, and 1 Hold rating. The mean price target is $48.00, implying 36.5% upside over the last close of $35.17. For the fiscal year ending August 31, 2026, analysts estimate revenue of $639.7M and EPS of $1.86. EPAC beat EPS estimates in 2 of the last 4 quarters, and the next earnings date is October 28, 2026.

EPAC forecast and price target →

Key risks and what to watch

  • Quarterly revenue growth of 5.6% trails the US-listed Industrials peer median of 9.1%.
  • Earnings consistency shows variability, with EPAC beating EPS estimates in only 2 of the past 4 quarters.
  • Short interest represents 5.0% of the float, reflecting market skepticism.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this EPAC AI stock analysis

This page is an AI-written research summary of Enerpac Tool Group Corp. (EPAC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: EPAC income statement, EPAC balance sheet, EPAC key metrics, EPAC analyst forecast, EPAC chart. See the EPAC stock overview for the latest quote and news.

EPAC AI stock analysis FAQ

What does Enerpac Tool Group Corp. do?

Enerpac Tool Group designs, manufactures, and distributes hydraulic and mechanical tools, heavy lifting equipment, and services for industrial and infrastructure markets. It also produces synthetic ropes and biomedical textiles.

What is EPAC's valuation compared to peers?

EPAC trades at 20.0x trailing earnings and 12.7x EV/EBITDA, compared to the US-listed Industrials peer medians of 24.8x and 13.9x, respectively. Its forward P/E is 17.2x, matching the peer median.

Does EPAC pay a dividend?

Yes, EPAC pays an annual dividend of $0.04 per share, resulting in a dividend yield of 0.11% and a payout ratio of 3.0%.

How strong is Enerpac Tool Group's balance sheet?

As of May 31, 2026, the company held $115.7M in cash against $184.8M of total debt, resulting in net debt of $69.1M, a current ratio of 2.67, and a debt-to-equity ratio of 0.44.

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