ACCO BRANDS CORP (ACCO) Stock Fundamental Analysis
NYSE:ACCO - New York Stock Exchange, Inc. - US00081T1088 - Common Stock - Currency: USD
ACCO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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 valued quite cheap, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: ACCO reported negative net income in multiple years.
ACCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACCO's Return On Assets of -4.78% is on the low side compared to the rest of the industry. ACCO is outperformed by 65.06% of its industry peers.
With a Return On Equity value of -17.90%, ACCO is not doing good in the industry: 63.86% of the companies in the same industry are doing better.
The Return On Invested Capital of ACCO (5.75%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACCO is significantly below the industry average of 11.65%.
| 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
ACCO has a better Operating Margin (8.31%) than 61.45% of its industry peers.
ACCO's Operating Margin has declined in the last couple of years.
ACCO has a Gross Margin of 33.52%. This is comparable to the rest of the industry: ACCO outperforms 53.01% of its industry peers.
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
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
The number of shares outstanding for ACCO has been reduced compared to 5 years ago.
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: 73.49% of the companies in the same industry are doing better.
The Debt to FCF ratio of ACCO is 8.49, which is on the high side as it means it would take ACCO, 8.49 years of fcf income to pay off all of its debts.
ACCO's Debt to FCF ratio of 8.49 is fine compared to the rest of the industry. ACCO outperforms 61.45% of its industry peers.
ACCO has a Debt/Equity ratio of 1.50. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ACCO (1.50) is worse than 73.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | 8.49 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.77
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.76 indicates that ACCO should not have too much problems paying its short term obligations.
ACCO has a better Current ratio (1.76) than 61.45% 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 has a Quick ratio of 1.02. This is in the lower half of the industry: ACCO underperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for ACCO have decreased strongly by -14.56% in the last year.
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 -9.09%.
The Revenue has been decreasing by -3.15% on average over the past years.
EPS 1Y (TTM)-14.56%
EPS 3Y-10.02%
EPS 5Y-3.52%
EPS Q2Q%-24.32%
Revenue 1Y (TTM)-9.09%
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.
The Revenue is expected to decrease by -4.22% on average over the next years.
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.
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
The Price/Earnings ratio is 3.91, which indicates a rather cheap valuation of ACCO.
Based on the Price/Earnings ratio, ACCO is valued cheaply inside the industry as 96.39% of the companies are valued more expensively.
ACCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 3.13 indicates a rather cheap valuation of ACCO.
100.00% of the companies in the same industry are more expensive than ACCO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.80, ACCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 3.13 |
4.2 Price Multiples
ACCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ACCO is cheaper than 89.16% of the companies 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 | 2.83 | ||
| EV/EBITDA | 5.41 |
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
ACCO has a Yearly Dividend Yield of 7.94%, which is a nice return.
ACCO's Dividend Yield is rather good when compared to the industry average which is at 2.38. ACCO pays more dividend than 100.00% of the companies in the same industry.
ACCO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.94% |
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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP-25.81%
EPS Next 2Y3.76%
EPS Next 3YN/A
3.44
-0.31 (-8.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners83.97%
Inst Owner Change0.77%
Ins Owners2.2%
Ins Owner Change3.09%
Market Cap309.94M
Analysts85
Price Target9.86 (186.63%)
Short Float %3.75%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.94% |
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)0%
PT rev (3m)1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 3.13 | ||
| P/S | 0.19 | ||
| P/FCF | 2.83 | ||
| P/OCF | 2.47 | ||
| P/B | 0.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.41 |
EPS(TTM)0.88
EY25.58%
EPS(NY)1.1
Fwd EY31.92%
FCF(TTM)1.22
FCFY35.39%
OCF(TTM)1.39
OCFY40.49%
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
WACC7.46%
ROIC/WACC0.77
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)-9.09%
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-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%