ACCO BRANDS CORP (ACCO) Stock Fundamental Analysis
USA - NYSE:ACCO - US00081T1088 - Common Stock
4.01 USD
-0.12 (-2.91%)
4.01 USD
0 (0%)
Taking everything into account, ACCO scores 4 out of 10 in our fundamental rating. ACCO was compared to 84 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of ACCO while its profitability can be described as average. 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.
In multiple years ACCO reported negative net income over the last 5 years.
In the past 5 years ACCO always reported a positive cash flow from operatings.
1.2 Ratios
ACCO has a Return On Assets (1.93%) which is comparable to the rest of the industry.
ACCO has a Return On Equity of 7.20%. This is in the better half of the industry: ACCO outperforms 63.10% of its industry peers.
With a Return On Invested Capital value of 4.75%, ACCO perfoms like the industry average, outperforming 51.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACCO is below the industry average of 10.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.2% | ||
| ROIC | 4.75% |
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
With a Profit Margin value of 2.90%, ACCO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
With a Operating Margin value of 7.39%, ACCO perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
ACCO's Operating Margin has declined in the last couple of years.
ACCO has a Gross Margin (32.99%) which is in line with its industry peers.
ACCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | 2.9% | ||
| GM | 32.99% |
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.
ACCO has less shares outstanding than it did 1 year ago.
ACCO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ACCO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that ACCO is in the distress zone and has some risk of bankruptcy.
ACCO has a worse Altman-Z score (0.74) than 72.62% of its industry peers.
The Debt to FCF ratio of ACCO is 10.41, which is on the high side as it means it would take ACCO, 10.41 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.41, ACCO perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
ACCO has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
ACCO has a worse Debt to Equity ratio (1.51) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 10.41 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.61
WACC7.72%
2.3 Liquidity
ACCO has a Current Ratio of 1.85. This is a normal value and indicates that ACCO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.85, ACCO is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that ACCO should not have too much problems paying its short term obligations.
The Quick ratio of ACCO (1.15) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for ACCO have decreased strongly by -14.56% 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.
Looking at the last year, ACCO shows a decrease in Revenue. The Revenue has decreased by -8.80% in the last year.
ACCO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.15% yearly.
EPS 1Y (TTM)-14.56%
EPS 3Y-10.02%
EPS 5Y-3.52%
EPS Q2Q%-24.32%
Revenue 1Y (TTM)-8.8%
Revenue growth 3Y-6.3%
Revenue growth 5Y-3.15%
Sales Q2Q%-9.92%
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 3.92% on average per year.
The Revenue is expected to decrease by -3.22% on average over the next years.
EPS Next Y-14.33%
EPS Next 2Y3.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.26%
Revenue Next 2Y-3.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ACCO is valuated cheaply with a Price/Earnings ratio of 4.56.
ACCO's Price/Earnings ratio is rather cheap when compared to the industry. ACCO is cheaper than 97.62% of the companies in the same industry.
ACCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
ACCO is valuated cheaply with a Price/Forward Earnings ratio of 3.64.
ACCO's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACCO is cheaper than 100.00% of the companies in the same industry.
ACCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.56 | ||
| Fwd PE | 3.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACCO indicates a rather cheap valuation: ACCO is cheaper than 90.48% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACCO is valued cheaper than 97.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.83 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ACCO has a Yearly Dividend Yield of 7.26%, which is a nice return.
ACCO's Dividend Yield is rather good when compared to the industry average which is at 2.27. ACCO pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ACCO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
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
60.13% of the earnings are spent on dividend by ACCO. This is not a sustainable payout ratio.
ACCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.13%
EPS Next 2Y3.92%
EPS Next 3YN/A
4.01
-0.12 (-2.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners85.98%
Inst Owner Change-0.17%
Ins Owners1.66%
Ins Owner Change0.62%
Market Cap361.42M
Analysts85
Price Target8.84 (120.45%)
Short Float %3.92%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.26% |
Yearly Dividend0.3
Dividend Growth(5Y)4.29%
DP60.13%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)24.7%
Min EPS beat(2)-5.34%
Max EPS beat(2)54.75%
EPS beat(4)1
Avg EPS beat(4)9.99%
Min EPS beat(4)-7.49%
Max EPS beat(4)54.75%
EPS beat(8)5
Avg EPS beat(8)19.44%
EPS beat(12)8
Avg EPS beat(12)16.09%
EPS beat(16)10
Avg EPS beat(16)12.97%
Revenue beat(2)0
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.7%
Revenue beat(8)1
Avg Revenue beat(8)-3.15%
Revenue beat(12)2
Avg Revenue beat(12)-2.53%
Revenue beat(16)3
Avg Revenue beat(16)-2.23%
PT rev (1m)0%
PT rev (3m)-10.34%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-14.1%
EPS NY rev (1m)-8.86%
EPS NY rev (3m)-13.47%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.56 | ||
| Fwd PE | 3.64 | ||
| P/S | 0.23 | ||
| P/FCF | 3.83 | ||
| P/OCF | 3.22 | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.26 |
EPS(TTM)0.88
EY21.95%
EPS(NY)1.1
Fwd EY27.47%
FCF(TTM)1.05
FCFY26.12%
OCF(TTM)1.24
OCFY31.04%
SpS17.54
BVpS7.07
TBVpS-6.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.2% | ||
| ROCE | 6.07% | ||
| ROIC | 4.75% | ||
| ROICexc | 5.1% | ||
| ROICexgc | 14.9% | ||
| OM | 7.39% | ||
| PM (TTM) | 2.9% | ||
| GM | 32.99% | ||
| FCFM | 5.97% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 10.41 | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 24.15% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 2.53 | ||
| Cash Conversion | 58.9% | ||
| Profit Quality | 205.66% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 0.74 |
F-Score5
WACC7.72%
ROIC/WACC0.61
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)-14.56%
EPS 3Y-10.02%
EPS 5Y-3.52%
EPS Q2Q%-24.32%
EPS Next Y-14.33%
EPS Next 2Y3.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.8%
Revenue growth 3Y-6.3%
Revenue growth 5Y-3.15%
Sales Q2Q%-9.92%
Revenue Next Year-8.26%
Revenue Next 2Y-3.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.21%
EBIT growth 3Y-2.9%
EBIT growth 5Y-6.98%
EBIT Next Year2.28%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-21.72%
FCF growth 3Y-1.49%
FCF growth 5Y-4.33%
OCF growth 1Y-17.62%
OCF growth 3Y-2.44%
OCF growth 5Y-6.18%