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 has a bad profitability rating. Also its financial health evaluation is rather negative. ACCO is cheap, but on the other hand it scores bad on growth. ACCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ACCO had positive earnings in the past year.
ACCO had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -4.78%, ACCO is doing worse than 66.27% of the companies in the same industry.
With a Return On Equity value of -17.90%, ACCO is not doing good in the industry: 65.06% of the companies in the same industry are doing better.
ACCO has a Return On Invested Capital of 5.75%. This is comparable to the rest of the industry: ACCO outperforms 54.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACCO is significantly below the industry average of 11.69%.
| 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
Looking at the Operating Margin, with a value of 8.31%, ACCO is in the better half of the industry, outperforming 61.45% of the companies in the same industry.
In the last couple of years the Operating Margin of ACCO has declined.
Looking at the Gross Margin, with a value of 33.52%, ACCO is in line with its industry, outperforming 53.01% of the companies in the same industry.
ACCO's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, ACCO has less shares outstanding
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 0.77. This is a bad value and indicates that ACCO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.77, ACCO is not doing good in the industry: 78.31% of the companies in the same industry are doing better.
ACCO has a debt to FCF ratio of 8.49. This is a slightly negative value and a sign of low solvency as ACCO would need 8.49 years to pay back of all of its debts.
ACCO has a Debt to FCF ratio of 8.49. This is in the better half of the industry: ACCO outperforms 60.24% of its industry peers.
A Debt/Equity ratio of 1.50 is on the high side and indicates that ACCO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.50, ACCO is doing worse than 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 8.49 | ||
| Altman-Z | 0.77 |
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.
The Current ratio of ACCO (1.76) is better than 62.65% of its industry peers.
A Quick Ratio of 1.02 indicates that ACCO should not have too much problems paying its short term obligations.
ACCO's Quick ratio of 1.02 is on the low side compared to the rest of the industry. ACCO is outperformed by 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
ACCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.73%.
Measured over the past years, ACCO shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.52% on average per year.
The Revenue has decreased by -9.19% in the past year.
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
ACCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.30% yearly.
The Revenue is expected to decrease by -4.22% on average over the next years.
EPS Next Y-1%
EPS Next 2Y6.3%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.91, the valuation of ACCO can be described as very cheap.
ACCO's Price/Earnings ratio is rather cheap when compared to the industry. ACCO is cheaper than 96.39% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACCO to the average of the S&P500 Index (26.59), we can say ACCO is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.29, the valuation of ACCO can be described as very cheap.
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 22.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 3.29 |
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 89.16% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACCO indicates a rather cheap valuation: ACCO is cheaper than 97.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.11 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ACCO has a Yearly Dividend Yield of 8.11%, which is a nice return.
ACCO's Dividend Yield is rather good when compared to the industry average which is at 2.48. ACCO pays more dividend than 98.80% of the companies in the same industry.
ACCO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.11% |
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.
ACCO has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 earnings are growing more, so the dividend growth is sustainable.
DP-25.81%
EPS Next 2Y6.3%
EPS Next 3YN/A
3.79
-0.02 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners84.4%
Inst Owner Change-4.09%
Ins Owners2.12%
Ins Owner Change3.1%
Market Cap341.48M
Analysts85
Price Target9.86 (160.16%)
Short Float %3.68%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.11% |
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)-10.77%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-13.86%
EPS NY rev (1m)-2.62%
EPS NY rev (3m)-12.39%
Revenue NQ rev (1m)-1.42%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)-1.21%
Revenue NY rev (3m)-9.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 3.29 | ||
| P/S | 0.21 | ||
| P/FCF | 3.11 | ||
| P/OCF | 2.72 | ||
| P/B | 0.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.44 |
EPS(TTM)0.97
EY25.59%
EPS(NY)1.15
Fwd EY30.41%
FCF(TTM)1.22
FCFY32.13%
OCF(TTM)1.39
OCFY36.75%
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 | 0.77 |
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-1%
EPS Next 2Y6.3%
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%