NYSE:ACCO

Stock Analysis Report

Executive Summary

ACCO Brands Corporation designs, manufactures, and markets consumer and business products.


Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has ACCO Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACCO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

ACCO

-1.0%

US Commercial Services

0.06%

US Market


1 Year Return

1.3%

ACCO

20.5%

US Commercial Services

19.3%

US Market

Return vs Industry: ACCO underperformed the US Commercial Services industry which returned 20.5% over the past year.

Return vs Market: ACCO underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

ACCOIndustryMarket
7 Day-3.2%-1.0%0.06%
30 Day3.8%2.4%1.7%
90 Day3.8%8.0%9.0%
1 Year4.1%1.3%24.7%20.5%21.8%19.3%
3 Year-29.6%-33.0%63.4%52.6%49.5%39.9%
5 Year30.4%24.2%102.3%80.8%73.1%54.1%

Price Volatility Vs. Market

How volatile is ACCO Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ACCO Brands undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACCO ($9.45) is trading below our estimate of fair value ($33.02)

Significantly Below Fair Value: ACCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ACCO is good value based on its PE Ratio (8.8x) compared to the Commercial Services industry average (26.6x).

PE vs Market: ACCO is good value based on its PE Ratio (8.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ACCO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ACCO is good value based on its PB Ratio (1.2x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is ACCO Brands forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACCO's forecast earnings growth (11.2% per year) is above the savings rate (1.7%).

Earnings vs Market: ACCO's earnings (11.2% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: ACCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACCO's revenue (0.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ACCO's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACCO's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has ACCO Brands performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACCO has high quality earnings.

Growing Profit Margin: ACCO's current net profit margins (5.5%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: ACCO's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: ACCO's earnings growth over the past year (0.09%) is below its 5-year average (3.6% per year).

Earnings vs Industry: ACCO earnings growth over the past year (0.09%) exceeded the Commercial Services industry -0.6%.


Return on Equity

High ROE: ACCO's Return on Equity (13.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ACCO Brands's financial position?


Financial Position Analysis

Short Term Liabilities: ACCO's short term assets ($806.0M) exceed its short term liabilities ($588.8M).

Long Term Liabilities: ACCO's short term assets ($806.0M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: ACCO's debt to equity ratio (104.7%) is considered high.

Reducing Debt: ACCO's debt to equity ratio has reduced from 116.1% to 104.7% over the past 5 years.

Debt Coverage: ACCO's debt is well covered by operating cash flow (25.2%).

Interest Coverage: ACCO's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

Inventory Level: ACCO has a high level of physical assets or inventory.

Debt Coverage by Assets: ACCO's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is ACCO Brands's current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACCO's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ACCO's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ACCO has been paying a dividend for less than 10 years.

Growing Dividend: ACCO's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.8%), ACCO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Boris Elisman (56yo)

6.9yrs

Tenure

US$4,682,019

Compensation

Mr. Boris Y. Elisman has been the President of ACCO Brands Corporation since December 2010 and has been its Chief Executive Officer since March 31, 2013. Mr. Elisman served as the President of Kensington T ...


CEO Compensation Analysis

Compensation vs Market: Boris's total compensation ($USD4.68M) is above average for companies of similar size in the US market ($USD2.48M).

Compensation vs Earnings: Boris's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Boris Elisman
Chairman6.9yrsUS$4.68m1.05% $9.6m
Neal Fenwick
Executive VP & CFO15.1yrsUS$1.57m0.62% $5.7m
Pamela Schneider
Senior VP7.8yrsUS$1.23m0.14% $1.2m
Thomas Tedford
Executive VP & President of ACCO Brands North America9.1yrsUS$1.79m0.24% $2.2m
Cezary Monko
Executive VP & President2.9yrsUS$1.52mno data
Gregory McCormack
Senior Vice President of Global Products & Operations2.1yrsno data0.10% $920.7k
Kathleen Hood
Senior VP4.8yrsno data0.054% $498.2k
Stephen Byers
Senior VP & Chief Information Officer1.1yrsno datano data
Jennifer Rice
Vice President of Investor Relations0yrsno datano data
Richard Nelson
Vice President of Corporate Communications0yrsno datano data

5.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: ACCO's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Boris Elisman
Chairman6.9yrsUS$4.68m1.05% $9.6m
E. Rajkowski
Independent Director7.8yrsUS$210.00k0.060% $549.7k
Thomas Kroeger
Independent Director10.2yrsUS$215.00k0.041% $378.1k
Robert Keller
Independent Director14.5yrsUS$196.00k0.26% $2.4m
Kathleen Dvorak
Independent Director9.8yrsUS$215.00k0.019% $174.6k
Pradeep Jotwani
Independent Director6.1yrsUS$209.88kno data
James Buzzard
Lead Independent Director 2.8yrsUS$220.00k0.081% $741.5k
Hans Norkus
Independent Director10.8yrsUS$207.50k0.10% $937.2k
Ronald Lombardi
Independent Director1.9yrsUS$203.06kno data
Graciela Monteagudo
Independent Director3.5yrsUS$195.00kno data

6.9yrs

Average Tenure

63yo

Average Age

Experienced Board: ACCO's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ACCO Brands Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ACCO Brands Corporation
  • Ticker: ACCO
  • Exchange: NYSE
  • Founded:
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$916.524m
  • Shares outstanding: 96.99m
  • Website: https://www.accobrands.com

Number of Employees


Location

  • ACCO Brands Corporation
  • Four Corporate Drive
  • Lake Zurich
  • Illinois
  • 60047
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACCONYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2005
A3BDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2005

Biography

ACCO Brands Corporation designs, manufactures, and markets consumer and business products. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers school notebooks, calendars, janitorial supplies, and whiteboards; storage and organization products, such as three-ring and lever-arch binders, sheet protectors, and indexes; laminating, binding, and shredding machines, as well as related consumable supplies; writing instruments; stapling and punching products; do-it-yourself tools; and computer accessories and others used in schools, homes, and businesses. It offers its products primarily under the AT-A-GLANCE, Five Star, GBC, Hilroy, Kensington, Mead, Quartet, Swingline, Derwent, Esselte, Leitz, NOBO, Rapid, Rexel, Artline, Barrilito, Marbig, Tilibra, and Wilson Jones brands. The company markets and sells its products through various channels, including mass retailers; e-tailers; discount, drug/grocery, and variety chains; warehouse clubs; hardware and specialty stores; independent office product dealers; office superstores; wholesalers; and contract stationers, as well as sells products directly to commercial and consumer end-users through its e-commerce platform and direct sales organization. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:22
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.