ACCO BRANDS CORP (ACCO) Stock Fundamental Analysis
NYSE:ACCO - US00081T1088 - Common Stock
4.01 USD
+0.09 (+2.3%)
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 valued quite cheap, but it does not seem to be growing.
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.
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's Return On Assets of 1.93% is in line compared to the rest of the industry. ACCO outperforms 57.14% of its industry peers.
ACCO has a better Return On Equity (7.20%) than 65.48% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for ACCO is significantly below the industry average of 11.08%.
| 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.
ACCO has a Operating Margin of 7.39%. This is comparable to the rest of the industry: ACCO outperforms 59.52% of its industry peers.
ACCO's Operating Margin has declined in the last couple of years.
ACCO has a Gross Margin (32.99%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ACCO is destroying value.
ACCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ACCO has been reduced compared to 5 years ago.
ACCO has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 0.74, ACCO is doing worse than 72.62% of the companies in the same industry.
ACCO has a debt to FCF ratio of 10.41. This is a negative value and a sign of low solvency as ACCO would need 10.41 years to pay back of all of its debts.
ACCO's Debt to FCF ratio of 10.41 is fine compared to the rest of the industry. ACCO outperforms 60.71% of its industry peers.
ACCO has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
ACCO's Debt to Equity ratio of 1.51 is on the low side compared to the rest of the industry. ACCO is outperformed by 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 10.41 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.61
WACC7.8%
2.3 Liquidity
A Current Ratio of 1.85 indicates that ACCO should not have too much problems paying its short term obligations.
The Current ratio of ACCO (1.85) is better than 63.10% 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 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
ACCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.56%.
The Earnings Per Share has been decreasing by -3.52% on average over the past years.
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 3.76% on average per year.
ACCO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.22% yearly.
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
The Price/Earnings ratio is 4.56, which indicates a rather cheap valuation of ACCO.
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 27.24.
With a Price/Forward Earnings ratio of 3.65, the valuation of ACCO can be described as very cheap.
Based on the Price/Forward Earnings ratio, ACCO is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.82. ACCO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.56 | ||
| Fwd PE | 3.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACCO is valued cheaper than 90.48% of the companies in the same industry.
97.62% 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 | 3.83 | ||
| EV/EBITDA | 6.21 |
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 7.67%, ACCO is a good candidate for dividend investing.
ACCO's Dividend Yield is rather good when compared to the industry average which is at 2.30. ACCO pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ACCO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.67% |
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 2Y3.76%
EPS Next 3YN/A
4.01
+0.09 (+2.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners85.98%
Inst Owner Change-0.2%
Ins Owners1.66%
Ins Owner Change3.09%
Market Cap361.30M
Analysts85
Price Target8.84 (120.45%)
Short Float %3.89%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.67% |
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)-10.34%
PT rev (3m)-13.33%
EPS NQ rev (1m)-13.46%
EPS NQ rev (3m)-22.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.54%
Revenue NQ rev (1m)2.08%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.56 | ||
| Fwd PE | 3.65 | ||
| P/S | 0.23 | ||
| P/FCF | 3.83 | ||
| P/OCF | 3.22 | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.21 |
EPS(TTM)0.88
EY21.95%
EPS(NY)1.1
Fwd EY27.39%
FCF(TTM)1.05
FCFY26.13%
OCF(TTM)1.25
OCFY31.05%
SpS17.55
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
WACC7.8%
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-6%
EPS Next 2Y3.76%
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-8.79%
Revenue Next 2Y-4.22%
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%