ACCO BRANDS CORP (ACCO)
US00081T1088 - Common Stock
Overall ACCO gets a fundamental rating of 4 out of 10. We evaluated ACCO against 84 industry peers in the Commercial Services & Supplies industry. While ACCO is still in line with the averages on profitability rating, there are concerns on its financial health. ACCO is valued quite cheap, but it does not seem to be growing. Finally ACCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ACCO had positive earnings in the past year.
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.
Each year in the past 5 years ACCO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.82%, ACCO is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
With a Return On Equity value of -2.77%, ACCO perfoms like the industry average, outperforming 40.96% of the companies in the same industry.
ACCO's Return On Invested Capital of 6.06% is in line compared to the rest of the industry. ACCO outperforms 59.04% of its industry peers.
ACCO had an Average Return On Invested Capital over the past 3 years of 5.47%. This is below the industry average of 10.00%.
The 3 year average ROIC (5.47%) for ACCO is below the current ROIC(6.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.82% | ||
| ROE | -2.77% | ||
| ROIC | 6.06% |
ROA(3y)0.67%
ROA(5y)1.57%
ROE(3y)2.46%
ROE(5y)5.91%
ROIC(3y)5.47%
ROIC(5y)5.58%
1.3 Margins
ACCO has a better Operating Margin (8.81%) than 68.67% of its industry peers.
In the last couple of years the Operating Margin of ACCO has declined.
With a Gross Margin value of 32.64%, ACCO perfoms like the industry average, outperforming 57.83% 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 | 8.81% | ||
| PM (TTM) | N/A | ||
| GM | 32.64% |
OM growth 3Y4.34%
OM growth 5Y-2.96%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.14%
GM growth 5Y0.19%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACCO is destroying value.
Compared to 1 year ago, ACCO has more shares outstanding
The number of shares outstanding for ACCO has been reduced compared to 5 years ago.
Compared to 1 year ago, ACCO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that ACCO is in the distress zone and has some risk of bankruptcy.
ACCO's Altman-Z score of 0.89 is on the low side compared to the rest of the industry. ACCO is outperformed by 73.49% of its industry peers.
The Debt to FCF ratio of ACCO is 8.00, which is on the high side as it means it would take ACCO, 8.00 years of fcf income to pay off all of its debts.
ACCO's Debt to FCF ratio of 8.00 is in line compared to the rest of the industry. ACCO outperforms 55.42% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that ACCO has dependencies on debt financing.
With a Debt to Equity ratio value of 1.12, ACCO is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 8 | ||
| Altman-Z | 0.89 |
ROIC/WACC0.77
WACC7.84%
2.3 Liquidity
ACCO has a Current Ratio of 1.58. 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 (1.58) which is in line with its industry peers.
ACCO has a Quick Ratio of 1.58. This is a bad value and indicates that ACCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.97, ACCO is doing worse than 65.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.76% over the past year.
The Earnings Per Share has been decreasing by -0.89% on average over the past years.
Looking at the last year, ACCO shows a decrease in Revenue. The Revenue has decreased by -5.89% in the last year.
Measured over the past years, ACCO shows a decrease in Revenue. The Revenue has been decreasing by -1.14% on average per year.
EPS 1Y (TTM)4.76%
EPS 3Y16.26%
EPS 5Y-0.89%
EPS growth Q2Q21.88%
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y3.46%
Revenue growth 5Y-1.14%
Revenue growth Q2Q-2.16%
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 7.66% on average per year.
Based on estimates for the next years, ACCO will show a decrease in Revenue. The Revenue will decrease by -0.43% on average per year.
EPS Next Y-0.78%
EPS Next 2Y7.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.23%
Revenue Next 2Y-0.43%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.39, which indicates a rather cheap valuation of ACCO.
Based on the Price/Earnings ratio, ACCO is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, ACCO is valued rather cheaply.
ACCO is valuated cheaply with a Price/Forward Earnings ratio of 4.43.
Based on the Price/Forward Earnings ratio, ACCO is valued cheaper than 98.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.49. ACCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.39 | ||
| Fwd PE | 4.43 |
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 91.57% of the companies listed 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 | 4.02 | ||
| EV/EBITDA | 5.54 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ACCO has a Yearly Dividend Yield of 6.17%, which is a nice return.
The stock price of ACCO dropped by -21.46% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ACCO's Dividend Yield is rather good when compared to the industry average which is at 2.43. ACCO pays more dividend than 97.59% of the companies in the same industry.
ACCO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
5.2 History
The dividend of ACCO has a limited annual growth rate of 4.67%.
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)4.67%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
ACCO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of ACCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-130.73%
EPS Next 2Y7.66%
EPS Next 3YN/A
ACCO BRANDS CORP
NYSE:ACCO (4/26/2024, 6:33:57 PM)
After market: 4.83 0 (0%)4.83
-0.02 (-0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap461.94M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.39 | ||
| Fwd PE | 4.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.82% | ||
| ROE | -2.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.81% | ||
| PM (TTM) | N/A | ||
| GM | 32.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.76%
EPS 3Y16.26%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.89%
Revenue growth 3Y3.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y