Acme United downgraded to hold due to weak organic growth and margin pressure despite acquisitions.

Acme United's rating was lowered to hold because its recent 14% revenue growth in Q1 2026 was mainly driven by acquisitions, with organic growth remaining modest and uncertain. The company's profit margins have declined due to tariffs, rising costs, and the mix of acquisitions. Although it focuses on first aid and medical products, it has yet to show consistent growth and improved profitability. Interest coverage stands at 3.6x, which is adequate but not strong, raising concerns about future financial stability.