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ACCO Brands

NYSE:ACCO
Snowflake Description

Very undervalued with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACCO
NYSE
$795M
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

ACCO Brands Corporation designs, manufactures, and markets consumer and business products. The last earnings update was 76 days ago. More info.


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ACCO Share Price and Events
7 Day Returns
0.3%
NYSE:ACCO
1.3%
US Commercial Services
1.1%
US Market
1 Year Returns
-45.3%
NYSE:ACCO
10.4%
US Commercial Services
4.7%
US Market
ACCO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ACCO Brands (ACCO) 0.3% 1.7% -11.8% -45.3% -30.1% 24.4%
US Commercial Services 1.3% 0.5% 5.2% 10.4% 52.9% 78.5%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • ACCO underperformed the Commercial Services industry which returned 10.4% over the past year.
  • ACCO underperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
ACCO
Industry
5yr Volatility vs Market
Related Companies

Value

 Is ACCO Brands undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ACCO Brands to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ACCO Brands.

NYSE:ACCO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ACCO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.67 (1 + (1- 21%) (138.13%))
1.269
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.269 * 5.96%)
10.29%

Discounted Cash Flow Calculation for NYSE:ACCO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ACCO Brands is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ACCO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.29%)
2020 185.70 Analyst x1 168.37
2021 202.87 Est @ 9.25% 166.78
2022 217.67 Est @ 7.29% 162.25
2023 230.56 Est @ 5.92% 155.82
2024 242.01 Est @ 4.97% 148.30
2025 252.40 Est @ 4.29% 140.24
2026 262.06 Est @ 3.83% 132.02
2027 271.22 Est @ 3.5% 123.88
2028 280.08 Est @ 3.27% 115.99
2029 288.78 Est @ 3.11% 108.44
Present value of next 10 years cash flows $1,422.09
NYSE:ACCO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $288.78 × (1 + 2.73%) ÷ (10.29% – 2.73%)
$3,923.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,923.73 ÷ (1 + 10.29%)10
$1,473.35
NYSE:ACCO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,422.09 + $1,473.35
$2,895.43
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,895.43 / 102.09
$28.36
NYSE:ACCO Discount to Share Price
Calculation Result
Value per share (USD) From above. $28.36
Current discount Discount to share price of $7.79
= -1 x ($7.79 - $28.36) / $28.36
72.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ACCO Brands is available for.
Intrinsic value
>50%
Share price is $7.79 vs Future cash flow value of $28.36
Current Discount Checks
For ACCO Brands to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ACCO Brands's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ACCO Brands's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ACCO Brands's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ACCO Brands's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ACCO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.92
NYSE:ACCO Share Price ** NYSE (2019-07-16) in USD $7.79
United States of America Commercial Services Industry PE Ratio Median Figure of 46 Publicly-Listed Commercial Services Companies 23.09x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ACCO Brands.

NYSE:ACCO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ACCO Share Price ÷ EPS (both in USD)

= 7.79 ÷ 0.92

8.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ACCO Brands is good value based on earnings compared to the US Commercial Services industry average.
  • ACCO Brands is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does ACCO Brands's expected growth come at a high price?
Raw Data
NYSE:ACCO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
17.7%per year
United States of America Commercial Services Industry PEG Ratio Median Figure of 34 Publicly-Listed Commercial Services Companies 1.64x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

NYSE:ACCO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.44x ÷ 17.7%

0.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ACCO Brands is good value based on expected growth next year.
Price based on value of assets
What value do investors place on ACCO Brands's assets?
Raw Data
NYSE:ACCO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $7.46
NYSE:ACCO Share Price * NYSE (2019-07-16) in USD $7.79
United States of America Commercial Services Industry PB Ratio Median Figure of 86 Publicly-Listed Commercial Services Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NYSE:ACCO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ACCO Share Price ÷ Book Value per Share (both in USD)

= 7.79 ÷ 7.46

1.04x

* Primary Listing of ACCO Brands.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ACCO Brands is good value based on assets compared to the US Commercial Services industry average.
X
Value checks
We assess ACCO Brands's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. ACCO Brands has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ACCO Brands expected to grow at an attractive rate?
  • ACCO Brands's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • ACCO Brands's earnings growth is expected to exceed the United States of America market average.
  • ACCO Brands's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ACCO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ACCO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 17.7%
NYSE:ACCO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 0.1%
United States of America Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 14.9%
United States of America Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ACCO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ACCO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,925 215 133 5
2019-12-31 1,919 192 114 6
NYSE:ACCO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,929 73 96
2018-12-31 1,941 195 107
2018-09-30 1,979 174 146
2018-06-30 2,004 191 141
2018-03-31 1,995 200 139
2017-12-31 1,949 205 132
2017-09-30 1,820 172 64
2017-06-30 1,719 173 56
2017-03-31 1,639 180 94
2016-12-31 1,557 167 96
2016-09-30 1,532 212 121
2016-06-30 1,514 164 131

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ACCO Brands's earnings are expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).
  • ACCO Brands's revenue is expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ACCO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from ACCO Brands Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ACCO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.31 1.36 1.26 3.00
2019-12-31 1.11 1.14 1.08 3.00
NYSE:ACCO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.92
2018-12-31 1.02
2018-09-30 1.38
2018-06-30 1.32
2018-03-31 1.29
2017-12-31 1.22
2017-09-30 0.59
2017-06-30 0.52
2017-03-31 0.88
2016-12-31 0.89
2016-09-30 1.13
2016-06-30 1.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if ACCO Brands will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess ACCO Brands's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ACCO Brands has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ACCO Brands performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ACCO Brands's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ACCO Brands's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • ACCO Brands's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • ACCO Brands's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.
Earnings and Revenue History
ACCO Brands's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ACCO Brands Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ACCO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,929.30 95.70 374.70
2018-12-31 1,941.20 106.70 378.50
2018-09-30 1,978.70 145.70 383.90
2018-06-30 2,003.60 140.70 397.40
2018-03-31 1,994.80 138.50 400.90
2017-12-31 1,948.80 131.70 390.60
2017-09-30 1,819.60 63.80 372.10
2017-06-30 1,718.70 55.90 347.00
2017-03-31 1,638.80 94.30 324.50
2016-12-31 1,557.10 95.50 307.80
2016-09-30 1,531.60 120.80 300.50
2016-06-30 1,513.90 130.70 296.90
2016-03-31 1,498.50 96.50 295.70
2015-12-31 1,510.40 85.90 297.40
2015-09-30 1,558.20 98.40 300.90
2015-06-30 1,616.80 100.00 312.40
2015-03-31 1,649.80 93.60 319.40
2014-12-31 1,689.20 91.60 328.60
2014-09-30 1,733.00 98.00 340.00
2014-06-30 1,730.00 90.20 334.40
2014-03-31 1,742.50 78.40 340.40
2013-12-31 1,765.10 77.30 347.30
2013-09-30 1,791.10 11.90 348.10
2013-06-30 1,823.10 40.70 356.40
2013-03-31 1,821.60 125.40 347.80
2012-12-31 1,758.50 117.00 339.10
2012-09-30 1,579.50 141.50 300.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ACCO Brands has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ACCO Brands used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.
  • ACCO Brands's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ACCO Brands's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ACCO Brands has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ACCO Brands's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ACCO Brands's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ACCO Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ACCO Brands's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of ACCO Brands's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ACCO Brands Company Filings, last reported 3 months ago.

NYSE:ACCO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 764.80 1,006.00 100.50
2018-12-31 789.70 882.50 67.00
2018-09-30 749.10 1,013.40 95.00
2018-06-30 748.30 1,070.90 139.20
2018-03-31 765.00 951.10 122.70
2017-12-31 774.10 932.40 76.90
2017-09-30 721.50 1,034.50 101.30
2017-06-30 717.00 1,096.30 102.20
2017-03-31 717.20 1,022.10 118.30
2016-12-31 708.70 696.20 42.90
2016-09-30 724.10 784.20 101.00
2016-06-30 698.70 876.30 96.20
2016-03-31 612.70 721.10 102.40
2015-12-31 581.20 720.50 55.40
2015-09-30 561.00 826.00 70.90
2015-06-30 603.60 890.30 86.90
2015-03-31 583.10 819.70 90.80
2014-12-31 681.00 789.30 53.20
2014-09-30 728.00 896.60 72.50
2014-06-30 749.30 964.20 92.30
2014-03-31 709.70 921.50 95.30
2013-12-31 702.30 920.90 53.50
2013-09-30 638.20 1,000.70 70.80
2013-06-30 611.00 1,089.90 95.30
2013-03-31 633.10 1,051.00 102.10
2012-12-31 639.20 1,072.10 50.00
2012-09-30 679.80 1,210.30 125.00
  • ACCO Brands's level of debt (131.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (129.8% vs 131.5% today).
  • Debt is not well covered by operating cash flow (7.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.7x coverage).
X
Financial health checks
We assess ACCO Brands's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ACCO Brands has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.08%
Current annual income from ACCO Brands dividends.
If you bought $2,000 of ACCO Brands shares you are expected to receive $62 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ACCO Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • ACCO Brands's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ACCO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 41 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ACCO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
NYSE:ACCO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-02 0.240 3.062
2019-02-13 0.240 2.709
2018-10-30 0.240 3.032
2018-07-31 0.240 2.090
2018-05-01 0.240 1.821
2018-02-14 0.240 1.866

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether ACCO Brands has stable dividend payments.
  • ACCO Brands only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of ACCO Brands's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess ACCO Brands's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ACCO Brands afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ACCO Brands has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ACCO Brands's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Boris Elisman
COMPENSATION $4,682,019
AGE 56
TENURE AS CEO 6.3 years
CEO Bio

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 Technology Group since November 2004. Mr. Elisman served as the President of Americas Operation art ACCO Brands Corporation from October 2008 to January 10, 2011. He is a 15-year veteran. He served as an Executive Vice President of ACCO Brands Corporation. He served as the President of Kensington Computer Products Group at ACCO Brands Corporation since 2005. He served as President of Global Office Products Group of ACCO Brands Corp. from April 2008 to October 2008. He served as the President of Kensington Computer Accessories from November 2004 to August 2005. Mr. Elisman served as Vice President of Marketing and Sales for Supplies Business Unit, Imaging and Printing Supplies Organization (IPS) from 2003 to November 2004, where he was responsible for leading the IPS marketing function across the regions and divisions, as well as management and execution of marketing, communication and customer insight programs. He served as a Vice President and General Manager of Emerging Businesses Organization of Hewlett-Packard Corporation from 2001 to 2003, was responsible for leading the creation and development of new technology businesses. He also served as Group Marketing Manager of Embedded and Personal Systems Organization of Hewlett-Packard Corporation. Prior to joining Hewlett-Packard Corporation in 1989, he served as a Member of the Technical Staff at&T Bell Laboratories. He has been the Chairman of ACCO Brands Corporation since May 11, 2016 and has been its Director since March 31, 2013. His undergraduate and graduate degrees are from Brown University and he holds a Master's Degree in Business Administration from Stanford University Graduate School of Business.

CEO Compensation
  • Boris's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Boris's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the ACCO Brands management team in years:

5.3
Average Tenure
55.5
Average Age
  • The average tenure for the ACCO Brands management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Boris Elisman

TITLE
Chairman
COMPENSATION
$5M
AGE
56
TENURE
6.3 yrs

Neal Fenwick

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
57
TENURE
14.5 yrs

Pam Schneider

TITLE
Senior VP
COMPENSATION
$1M
AGE
59
TENURE
7.3 yrs

Tom Tedford

TITLE
Executive VP & President of ACCO Brands North America
COMPENSATION
$2M
AGE
48
TENURE
8.5 yrs

Cezary Monko

TITLE
Executive VP & President of ACCO Brands EMEA
COMPENSATION
$2M
AGE
57
TENURE
2.3 yrs

Greg McCormack

TITLE
Senior Vice President of Global Products & Operations
AGE
55
TENURE
1.5 yrs

Kathy Hood

TITLE
Senior VP
AGE
49
TENURE
4.3 yrs

Stephen Byers

TITLE
Senior VP & Chief Information Officer
AGE
53
TENURE
0.5 yrs

Jennifer Rice

TITLE
Vice President of Investor Relations

Rich Nelson

TITLE
Vice President of Corporate Communications
Board of Directors Tenure

Average tenure and age of the ACCO Brands board of directors in years:

6.3
Average Tenure
63
Average Age
  • The tenure for the ACCO Brands board of directors is about average.
Board of Directors

Boris Elisman

TITLE
Chairman
COMPENSATION
$5M
AGE
56
TENURE
3.2 yrs

Hans Norkus

TITLE
Director
COMPENSATION
$208K
AGE
72
TENURE
10.2 yrs

Tom Kroeger

TITLE
Director
COMPENSATION
$215K
AGE
70
TENURE
9.6 yrs

Kathy Dvorak

TITLE
Director
COMPENSATION
$215K
AGE
62
TENURE
9.2 yrs

E. Rajkowski

TITLE
Director
COMPENSATION
$210K
AGE
60
TENURE
7.2 yrs

Pradeep Jotwani

TITLE
Director
COMPENSATION
$210K
AGE
64
TENURE
5.5 yrs

Jim Buzzard

TITLE
Lead Independent Director
COMPENSATION
$220K
AGE
64
TENURE
2.2 yrs

Bob Keller

TITLE
Director
COMPENSATION
$196K
AGE
65
TENURE
13.9 yrs

Graciela Monteagudo

TITLE
Director
COMPENSATION
$195K
AGE
52
TENURE
2.9 yrs

Ron Lombardi

TITLE
Director
COMPENSATION
$203K
AGE
55
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
02. Nov 18 Buy Pamela Schneider Individual 01. Nov 18 01. Nov 18 3,100 $8.10 $25,110
01. Nov 18 Buy Boris Elisman Individual 31. Oct 18 31. Oct 18 6,547 $7.72 $50,543
01. Nov 18 Buy Neal Fenwick Individual 31. Oct 18 31. Oct 18 10,000 $8.09 $80,600
30. Aug 18 Sell Gregory McCormack Individual 29. Aug 18 29. Aug 18 -15,678 $12.42 $-194,776
X
Management checks
We assess ACCO Brands's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ACCO Brands has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Investigate ACCO Brands Corporation (NYSE:ACCO) At US$7.32?

ACCO Brands Corporation (NYSE:ACCO), which is in the commercial services business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $9.14 and falling to the lows of $7.32. … Check out our latest analysis for ACCO Brands Is ACCO Brands still cheap? … This is because ACCO Brands’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market.

Simply Wall St -

Here's How We Evaluate ACCO Brands Corporation's (NYSE:ACCO) Dividend

Dividend paying stocks like ACCO Brands Corporation (NYSE:ACCO) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. ACCO Brands has only been paying a dividend for a year or so, so investors might be curious about its 3.1% yield. The company also bought back stock equivalent to around 9.9% of market capitalisation this year. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Click the interactive chart for our full dividend analysis NYSE:ACCO Historical Dividend Yield, June 12th 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. ACCO Brands paid out 26% of its profit as dividends, over the trailing twelve month period. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Plus, there is room to increase the payout ratio over time. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. ACCO Brands paid out 63% of its cash flow as dividends last year, which is within a reasonable range for the average corporation. It's positive to see that ACCO Brands's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is ACCO Brands's Balance Sheet Risky? As ACCO Brands has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. ACCO Brands has grown its earnings per share at 6.3% per annum over the past five years. It's good to see decent earnings growth and a low payout ratio. Companies with these characteristics often display the fastest dividend growth over the long term - assuming earnings can be maintained, of course. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Does ACCO Brands Corporation’s (NYSE:ACCO) ROCE Reflect Well On The Business?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for ACCO Brands: 0.093 = US$215m ÷ (US$2.8b - US$516m) (Based on the trailing twelve months to March 2019.) Therefore, ACCO Brands has an ROCE of 9.3%. … ACCO Brands's Current Liabilities And Their Impact On Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Does ACCO Brands Corporation's (NYSE:ACCO) P/E Ratio Signal A Buying Opportunity?

We'll look at ACCO Brands Corporation's (NYSE:ACCO) P/E ratio and reflect on what it tells us about the company's share price. … ACCO Brands has a P/E ratio of 9.28, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Consider ACCO Brands Corporation (NYSE:ACCO)?

ACCO Brands Corporation (NYSE:ACCO) is a company with exceptional fundamental characteristics. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on ACCO Brands here

Simply Wall St -

What Kind Of Share Price Volatility Should You Expect For ACCO Brands Corporation (NYSE:ACCO)?

In finance, Beta is a measure of volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Are ACCO Brands Corporation's (NYSE:ACCO) Interest Costs Too High?

While small-cap stocks, such as ACCO Brands Corporation (NYSE:ACCO) with its market cap of US$888m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

With A Return On Equity Of 14%, Has ACCO Brands Corporation's (NYSE:ACCO) Management Done Well?

ACCO Brands has a ROE of 14%, based on the last twelve months. … That means that for every $1 worth of shareholders' equity, it generated $0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does ACCO Brands Corporation's (NYSE:ACCO) CEO Salary Compare Well With Others?

How Does Boris Elisman's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that ACCO Brands Corporation has a market cap of US$917m, and is paying total annual CEO compensation of US$5.0m. … We think total compensation is more important but we note that the CEO salary is lower, at US$918k

Simply Wall St -

Did You Miss ACCO Brands's 49% Share Price Gain?

For example, the ACCO Brands Corporation (NYSE:ACCO) share price is 49% higher than it was five years ago, which is more than the market average. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, ACCO Brands achieved compound earnings per share (EPS) growth of 8.4% per year.

Simply Wall St -

Company Info

Description

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.

Details
Name: ACCO Brands Corporation
ACCO
Exchange: NYSE
Founded:
$795,273,458
102,089,019
Website: http://www.accobrands.com
Address: ACCO Brands Corporation
Four Corporate Drive,
Lake Zurich,
Illinois, 60047,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ACCO Common Stock New York Stock Exchange US USD 05. Aug 2005
DB A3B Common Stock Deutsche Boerse AG DE EUR 05. Aug 2005
Number of employees
Current staff
Staff numbers
6,700
ACCO Brands employees.
Industry
Office Services and Supplies
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 00:01
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.