ACCO Brands (NYSE:ACCO) - Share price, News & Analysis

Q: What is the Fair Price of ACCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ACCO ($6.83) is trading below our estimate of [[fair value]] ($21.67)

ACCO fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	4/6
Financial Health	3/6
Dividends	4/6

ACCO Stock Overview

ACCO Brands Corporation designs, manufactures, and markets consumer, school, technology, and office products.

Rewards

Trading at 68.5% below our estimate of its fair value

Earnings are forecast to grow 8.85% per year

Earnings grew by 43.8% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

ACCO Brands Competitors

Interface

NasdaqGS:TILE

US$754.5m

Pitney Bowes

NYSE:PBI

US$589.4m

NL Industries

NYSE:NL

US$438.9m

HNI

NYSE:HNI

US$1.4b

Price History & Performance

Summary of all time highs, changes and price drops for ACCO Brands
Historical stock prices
Current Share Price	US$6.83
52 Week High	US$9.76
52 Week Low	US$6.36
Beta	1.84
1 Month Change	3.64%
3 Month Change	-7.07%
1 Year Change	-27.03%
3 Year Change	-27.73%
5 Year Change	-36.46%
Change since IPO	-71.89%

Recent News & Updates

Aug 12

ACCO Brands (NYSE:ACCO) Will Pay A Dividend Of $0.075

The board of ACCO Brands Corporation ( NYSE:ACCO ) has announced that it will pay a dividend of $0.075 per share on the...

Aug 10

Returns At ACCO Brands (NYSE:ACCO) Appear To Be Weighed Down

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common...

Aug 08

ACCO Brands Non-GAAP EPS of $0.37 misses by $0.05, revenue of $521M misses by $17.15M

ACCO Brands press release (NYSE:ACCO): Q2 Non-GAAP EPS of $0.37 misses by $0.05. Revenue of $521M (+0.6% Y/Y) misses by $17.15M. Shares -4.7% AH.

Jul 21

When Should You Buy ACCO Brands Corporation (NYSE:ACCO)?

ACCO Brands Corporation ( NYSE:ACCO ), might not be a large cap stock, but it saw a double-digit share price rise of...

Shareholder Returns

	ACCO	US Commercial Services	US Market
7D	-4.1%	0.4%	1.3%
1Y	-27.0%	-0.7%	-11.7%

Return vs Industry: ACCO underperformed the US Commercial Services industry which returned -1% over the past year.

Return vs Market: ACCO underperformed the US Market which returned -11.6% over the past year.

Price Volatility

Is ACCO's price volatile compared to industry and market?
ACCO volatility
ACCO Average Weekly Movement	5.1%
Commercial Services Industry Average Movement	6.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

Stable Share Price: ACCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ACCO's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1893	6,000	Boris Elisman	https://www.accobrands.com

ACCO Brands Corporation designs, manufactures, and markets consumer, school, technology, and office products. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company provides computer and gaming accessories, calendars, planners, dry erase boards, school notebooks, and janitorial supplies; storage and organization products, such as lever-arch binders, sheet protectors, and indexes; laminating, binding, and shredding machines; writing instruments and art products; stapling and punching products; and do-it-yourself tools.

ACCO Brands Fundamentals Summary

How do ACCO Brands's earnings and revenue compare to its market cap?
ACCO fundamental statistics
Market Cap	US$643.80m
Earnings (TTM)	US$110.40m
Revenue (TTM)	US$2.06b

5.8x

P/E Ratio

0.3x

P/S Ratio

Is ACCO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACCO income statement (TTM)
Revenue	US$2.06b
Cost of Revenue	US$1.45b
Gross Profit	US$605.50m
Other Expenses	US$495.10m
Earnings	US$110.40m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.17
Gross Margin	29.40%
Net Profit Margin	5.36%
Debt/Equity Ratio	135.0%

How did ACCO perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

25%

Payout Ratio

Does ACCO pay a reliable dividends?

See ACCO dividend history and benchmarks

When do you need to buy ACCO by to receive an upcoming dividend?
ACCO Brands dividend dates
Ex Dividend Date	Aug 25 2022
Dividend Pay Date	Sep 20 2022
Days until Ex dividend	12 days
Days until Dividend pay date	38 days

Does ACCO pay a reliable dividends?

See ACCO dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is ACCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACCO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ACCO. This is calculated by dividing ACCO's market cap by their current preferred multiple.
What is ACCO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$643.80m

ACCO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	7.3x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does ACCO's PE Ratio compare to its peers?

ACCO PE Ratio vs Peers

The above table shows the PE ratio for ACCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.7x
TILE Interface	12.2x	16.1%	US$754.5m
PBI Pitney Bowes	16.6x	72.2%	US$589.4m
NL NL Industries	5.9x	n/a	US$438.9m
HNI HNI	20.1x	8.8%	US$1.4b
ACCO ACCO Brands	5.8x	8.8%	US$643.8m

Price-To-Earnings vs Peers: ACCO is good value based on its Price-To-Earnings Ratio (5.8x) compared to the peer average (13.7x).

Price to Earnings Ratio vs Industry

How does ACCO's PE Ratio compare vs other companies in the US Commercial Services Industry?

Price-To-Earnings vs Industry: ACCO is good value based on its Price-To-Earnings Ratio (5.8x) compared to the US Commercial Services industry average (19.9x)

Price to Earnings Ratio vs Fair Ratio

What is ACCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.8x
Fair PE Ratio	16.2x

Price-To-Earnings vs Fair Ratio: ACCO is good value based on its Price-To-Earnings Ratio (5.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

Share Price vs Fair Value

What is the Fair Price of ACCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACCO ($6.83) is trading below our estimate of fair value ($21.67)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is ACCO Brands forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACCO's forecast earnings growth (8.8% per year) is above the savings rate (1.9%).

Earnings vs Market: ACCO's earnings (8.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: ACCO's revenue (1.5% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: ACCO's revenue (1.5% 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 (12.4%).

Discover growth companies

Past Performance

How has ACCO Brands performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-4.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ACCO has high quality earnings.

Growing Profit Margin: ACCO's current net profit margins (5.4%) are higher than last year (4.2%).

Past Earnings Growth Analysis

Earnings Trend: ACCO's earnings have declined by 4.4% per year over the past 5 years.

Accelerating Growth: ACCO's earnings growth over the past year (43.8%) exceeds its 5-year average (-4.4% per year).

Earnings vs Industry: ACCO earnings growth over the past year (43.8%) exceeded the Commercial Services industry 23.5%.

Return on Equity

High ROE: ACCO's Return on Equity (12.6%) is considered low.

Discover strong past performing companies

Financial Health

How is ACCO Brands's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ACCO's short term assets ($1.0B) exceed its short term liabilities ($590.5M).

Long Term Liabilities: ACCO's short term assets ($1.0B) do not cover its long term liabilities ($1.6B).

Debt to Equity History and Analysis

Debt Level: ACCO's net debt to equity ratio (124.5%) is considered high.

Reducing Debt: ACCO's debt to equity ratio has reduced from 152.8% to 135% over the past 5 years.

Debt Coverage: ACCO's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: ACCO's interest payments on its debt are well covered by EBIT (4.8x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.39%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: ACCO's dividend (4.39%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: ACCO's dividend (4.39%) is in the top 25% of dividend payers in the US market (4.05%)

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 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.2%), ACCO's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (28.9%), ACCO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.5yrs

Average management tenure

CEO

Boris Elisman (59 yo)

9.42yrs

Tenure

US$7,276,781

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 ($USD7.28M) is above average for companies of similar size in the US market ($USD3.91M).

Compensation vs Earnings: Boris's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: ACCO's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: ACCO's board of directors are considered experienced (9.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31