ACCO BRANDS CORP (ACCO) Stock Fundamental Analysis
USA - NYSE:ACCO - US00081T1088 - Common Stock
4.13 USD
+0.07 (+1.72%)
4.13 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. While ACCO is still in line with the averages on profitability rating, there are concerns on its financial health. ACCO is cheap, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years ACCO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ACCO (1.93%) is comparable to the rest of the industry.
With a decent Return On Equity value of 7.20%, ACCO is doing good in the industry, outperforming 64.29% of the companies in the same industry.
ACCO has a Return On Invested Capital of 4.75%. This is comparable to the rest of the industry: ACCO outperforms 52.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACCO is below the industry average of 10.21%.
| 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 59.52% of the companies in the same industry.
The Operating Margin of ACCO (7.39%) is comparable to the rest of the industry.
ACCO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 32.99%, ACCO is in line with its industry, outperforming 53.57% of the companies in the same industry.
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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACCO is destroying value.
Compared to 1 year ago, ACCO has less shares outstanding
ACCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACCO has a worse debt to assets ratio.
2.2 Solvency
ACCO has an Altman-Z score of 0.74. This is a bad value and indicates that ACCO is not financially healthy and even has some risk of bankruptcy.
ACCO's Altman-Z score of 0.74 is on the low side compared to the rest of the industry. ACCO is outperformed by 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.
Looking at the Debt to FCF ratio, with a value of 10.41, ACCO is in line with its industry, outperforming 59.52% of the companies in the same industry.
A Debt/Equity ratio of 1.51 is on the high side and indicates that ACCO has dependencies on debt financing.
ACCO has a Debt to Equity ratio of 1.51. This is in the lower half of the industry: ACCO underperforms 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
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.85 indicates that ACCO should not have too much problems paying its short term obligations.
ACCO has a better Current ratio (1.85) than 64.29% of its industry peers.
ACCO has a Quick Ratio of 1.15. This is a normal value and indicates that ACCO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ACCO (1.15) is worse than 65.48% 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.
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.
ACCO shows a decrease in Revenue. In the last year, the revenue decreased by -8.80%.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 4.69, which indicates a rather cheap valuation of ACCO.
Based on the Price/Earnings ratio, ACCO is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.86. ACCO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 3.75, the valuation of ACCO can be described as very cheap.
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.
The average S&P500 Price/Forward Earnings ratio is at 23.32. ACCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.69 | ||
| Fwd PE | 3.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACCO is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
96.43% of the companies in the same industry are more expensive than ACCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.94 | ||
| EV/EBITDA | 6.31 |
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 7.39%, which is a nice return.
Compared to an average industry Dividend Yield of 2.34, ACCO pays a better dividend. On top of this ACCO pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, ACCO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
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
60.13% of the earnings are spent on dividend by ACCO. This is not a sustainable payout ratio.
The dividend of ACCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.13%
EPS Next 2Y3.92%
EPS Next 3YN/A
4.13
+0.07 (+1.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners82.26%
Inst Owner Change0%
Ins Owners1.66%
Ins Owner Change0.62%
Market Cap372.24M
Analysts85
Price Target8.84 (114.04%)
Short Float %4.58%
Short Ratio7.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.39% |
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%
EPS NQ rev (3m)-14.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.69 | ||
| Fwd PE | 3.75 | ||
| P/S | 0.24 | ||
| P/FCF | 3.94 | ||
| P/OCF | 3.32 | ||
| P/B | 0.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.31 |
EPS(TTM)0.88
EY21.31%
EPS(NY)1.1
Fwd EY26.67%
FCF(TTM)1.05
FCFY25.36%
OCF(TTM)1.24
OCFY30.14%
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
WACC7.79%
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 Year-0.31%
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%