Technology • NYSE
According to Zyberno, ENERPAC TOOL GROUP CORP. (EPAC) shows a Value Trap signal — GREAT BUSINESS (76/100) with an apparent Margin of Safety of +42.0%, but a Brina Gap of -1.5% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, ENERPAC TOOL GROUP CORP. (EPAC) trades at $37.61 against an estimated intrinsic value per share of $64.83 — a +42.0% Margin of Safety based on Owner Earnings of $106.91M TTM, projected at 58.5% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -1.5% weakens the case: based on the company's ROIC (19.4%) and reinvestment rate (29.2%), the business can fundamentally grow at 5.7% — but the current enterprise value implies the market expects 7.2%. This places EPAC in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 33.8% annually.
Over the trailing twelve months, EPAC generated $106.91M in Owner Earnings. Capital was deployed as follows: $14.90M returned via share buybacks, $2.12M paid as dividends, $13.56M invested in capital expenditures. Reinvestment rate: 29.2%. Owner Earnings have grown at 58.5% annually over the trailing five years using log-linear regression.