ACCO BRANDS CORP (ACCO) Stock Fundamental Analysis
NYSE:ACCO - New York Stock Exchange, Inc. - US00081T1088 - Common Stock - Currency: USD
Overall ACCO gets a fundamental rating of 3 out of 10. We evaluated ACCO against 83 industry peers in the Commercial Services & Supplies industry. ACCO may be in some trouble as it scores bad on both profitability and health. ACCO is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ACCO was profitable.
In the past year ACCO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ACCO reported negative net income in multiple years.
In the past 5 years ACCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ACCO (-4.78%) is worse than 66.27% of its industry peers.
Looking at the Return On Equity, with a value of -17.90%, ACCO is doing worse than 65.06% of the companies in the same industry.
With a Return On Invested Capital value of 5.75%, ACCO perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACCO is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.78% | ||
| ROE | -17.9% | ||
| ROIC | 5.75% |
ROA(3y)-1.95%
ROA(5y)-0.11%
ROE(3y)-7.05%
ROE(5y)-0.21%
ROIC(3y)5.91%
ROIC(5y)5.4%
1.3 Margins
The Operating Margin of ACCO (8.31%) is better than 61.45% of its industry peers.
ACCO's Operating Margin has declined in the last couple of years.
ACCO has a Gross Margin (33.52%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ACCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.31% | ||
| PM (TTM) | N/A | ||
| GM | 33.52% |
OM growth 3Y3.62%
OM growth 5Y-3.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.16%
GM growth 5Y0.57%
2. Health
2.1 Basic Checks
ACCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ACCO has been reduced compared to 1 year ago.
Compared to 5 years ago, ACCO has less shares outstanding
The debt/assets ratio for ACCO is higher compared to a year ago.
2.2 Solvency
ACCO has an Altman-Z score of 0.78. This is a bad value and indicates that ACCO is not financially healthy and even has some risk of bankruptcy.
ACCO has a worse Altman-Z score (0.78) than 77.11% of its industry peers.
The Debt to FCF ratio of ACCO is 8.49, which is on the high side as it means it would take ACCO, 8.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.49, ACCO is in the better half of the industry, outperforming 60.24% of the companies in the same industry.
ACCO has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.50, ACCO is not doing good in the industry: 74.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 8.49 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.75
WACC7.71%
2.3 Liquidity
ACCO has a Current Ratio of 1.76. This is a normal value and indicates that ACCO is financially healthy and should not expect problems in meeting its short term obligations.
ACCO has a Current ratio of 1.76. This is in the better half of the industry: ACCO outperforms 62.65% of its industry peers.
ACCO has a Quick Ratio of 1.02. This is a normal value and indicates that ACCO is financially healthy and should not expect problems in meeting its short term obligations.
ACCO has a Quick ratio of 1.02. This is in the lower half of the industry: ACCO underperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for ACCO have decreased by -6.73% in the last year.
ACCO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.52% yearly.
ACCO shows a decrease in Revenue. In the last year, the revenue decreased by -9.19%.
ACCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.15% yearly.
EPS 1Y (TTM)-6.73%
EPS 3Y-10.02%
EPS 5Y-3.52%
EPS Q2Q%-166.67%
Revenue 1Y (TTM)-9.19%
Revenue growth 3Y-6.3%
Revenue growth 5Y-3.15%
Sales Q2Q%-11.56%
3.2 Future
Based on estimates for the next years, ACCO will show a small growth in Earnings Per Share. The EPS will grow by 3.76% on average per year.
Based on estimates for the next years, ACCO will show a decrease in Revenue. The Revenue will decrease by -4.22% on average per year.
EPS Next Y-6%
EPS Next 2Y3.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.79%
Revenue Next 2Y-4.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.11 indicates a rather cheap valuation of ACCO.
Based on the Price/Earnings ratio, ACCO is valued cheaply inside the industry as 96.39% of the companies are valued more expensively.
ACCO is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 3.63, which indicates a rather cheap valuation of ACCO.
Based on the Price/Forward Earnings ratio, ACCO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
ACCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACCO is valued cheaper than 89.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACCO is valued cheaper than 97.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.28 | ||
| EV/EBITDA | 5.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.43%, ACCO is a good candidate for dividend investing.
ACCO's Dividend Yield is rather good when compared to the industry average which is at 2.43. ACCO pays more dividend than 100.00% of the companies in the same industry.
ACCO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.43% |
5.2 History
The dividend of ACCO has a limited annual growth rate of 4.29%.
ACCO has been paying a dividend for over 5 years, so it has already some track record.
As ACCO did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.29%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
The earnings of ACCO are negative and hence is the payout ratio. ACCO will probably not be able to sustain this dividend level.
The dividend of ACCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-25.81%
EPS Next 2Y3.76%
EPS Next 3YN/A
3.99
+0.08 (+2.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners83.97%
Inst Owner Change-4.09%
Ins Owners2.2%
Ins Owner Change3.1%
Market Cap359.50M
Analysts85
Price Target9.86 (147.12%)
Short Float %3.31%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.43% |
Yearly Dividend0.3
Dividend Growth(5Y)4.29%
DP-25.81%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.63%
Min EPS beat(2)-7.49%
Max EPS beat(2)54.75%
EPS beat(4)2
Avg EPS beat(4)15.89%
Min EPS beat(4)-7.49%
Max EPS beat(4)54.75%
EPS beat(8)6
Avg EPS beat(8)23.67%
EPS beat(12)8
Avg EPS beat(12)15.4%
EPS beat(16)11
Avg EPS beat(16)17.18%
Revenue beat(2)0
Avg Revenue beat(2)-2.92%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-2.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.06%
Min Revenue beat(4)-5.09%
Max Revenue beat(4)-1.33%
Revenue beat(8)1
Avg Revenue beat(8)-3.18%
Revenue beat(12)2
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-1.74%
PT rev (1m)-3.33%
PT rev (3m)1.75%
EPS NQ rev (1m)-1.69%
EPS NQ rev (3m)-13.86%
EPS NY rev (1m)-5.05%
EPS NY rev (3m)-7.54%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 3.63 | ||
| P/S | 0.22 | ||
| P/FCF | 3.28 | ||
| P/OCF | 2.86 | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.52 |
EPS(TTM)0.97
EY24.31%
EPS(NY)1.1
Fwd EY27.52%
FCF(TTM)1.22
FCFY30.51%
OCF(TTM)1.39
OCFY34.91%
SpS18.03
BVpS6.73
TBVpS-6.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.78% | ||
| ROE | -17.9% | ||
| ROCE | 7.31% | ||
| ROIC | 5.75% | ||
| ROICexc | 6.2% | ||
| ROICexgc | 19.79% | ||
| OM | 8.31% | ||
| PM (TTM) | N/A | ||
| GM | 33.52% | ||
| FCFM | 6.75% |
ROA(3y)-1.95%
ROA(5y)-0.11%
ROE(3y)-7.05%
ROE(5y)-0.21%
ROIC(3y)5.91%
ROIC(5y)5.4%
ROICexc(3y)6.12%
ROICexc(5y)5.56%
ROICexgc(3y)20.03%
ROICexgc(5y)18.98%
ROCE(3y)7.5%
ROCE(5y)6.86%
ROICexcg growth 3Y4.49%
ROICexcg growth 5Y-1.27%
ROICexc growth 3Y8.72%
ROICexc growth 5Y-1.98%
OM growth 3Y3.62%
OM growth 5Y-3.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.16%
GM growth 5Y0.57%
F-Score5
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 8.49 | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 21.61% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 2.84 | ||
| Cash Conversion | 60.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 0.78 |
F-Score5
WACC7.71%
ROIC/WACC0.75
Cap/Depr(3y)20.22%
Cap/Depr(5y)21.41%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.73%
EPS 3Y-10.02%
EPS 5Y-3.52%
EPS Q2Q%-166.67%
EPS Next Y-6%
EPS Next 2Y3.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.19%
Revenue growth 3Y-6.3%
Revenue growth 5Y-3.15%
Sales Q2Q%-11.56%
Revenue Next Year-8.79%
Revenue Next 2Y-4.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.11%
EBIT growth 3Y-2.9%
EBIT growth 5Y-6.98%
EBIT Next Year9.24%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-23.55%
FCF growth 3Y-1.49%
FCF growth 5Y-4.33%
OCF growth 1Y-20.87%
OCF growth 3Y-2.44%
OCF growth 5Y-6.18%