NYSE:ACCO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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

1.9%

ACCO

0.7%

US Commercial Services

0.9%

US Market


1 Year Return

17.3%

ACCO

17.4%

US Commercial Services

15.5%

US Market

Return vs Industry: ACCO exceeded the US Commercial Services industry which returned 17.4% over the past year.

Return vs Market: ACCO exceeded the US Market which returned 15.5% over the past year.


Shareholder returns

ACCOIndustryMarket
7 Day1.9%0.7%0.9%
30 Day-4.3%-0.6%4.7%
90 Day-3.6%3.3%6.6%
1 Year20.6%17.3%21.8%17.4%18.1%15.5%
3 Year-22.1%-25.3%58.9%48.6%48.0%38.5%
5 Year8.9%4.4%98.7%78.3%62.1%44.2%

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 ($9.4) is trading below our estimate of fair value ($27.56)

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 (9.6x) compared to the Commercial Services industry average (25.9x).

PE vs Market: ACCO is good value based on its PE Ratio (9.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ACCO is good value based on its PEG Ratio (0.5x)


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 (1.9x).


Next Steps

Future Growth

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

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACCO's forecast earnings growth (18.3% per year) is above the savings rate (2.7%).

Earnings vs Market: ACCO's earnings (18.3% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: ACCO's revenue (1.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ACCO's revenue (1.2% 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 (12.9%).


Next Steps

Past Performance

How has ACCO Brands performed over the past 5 years?

3.8%

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%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: ACCO's earnings have grown by 3.8% per year over the past 5 years.

Accelerating Growth: ACCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACCO had negative earnings growth (-32.5%) over the past year, making it difficult to compare to the Commercial Services industry average (-3.1%).


Return on Equity

High ROE: ACCO's Return on Equity (12.8%) 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 ($772.9M) exceeds its short term liabilities ($477.6M)

Long Term Liabilities: ACCO's short term assets ($772.9M) do not cover its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: ACCO's debt to equity ratio (119.7%) is considered high.

Reducing Debt: ACCO's debt to equity ratio has reduced from 123.1% to 119.7% over the past 5 years.

Debt Coverage: ACCO's debt is well covered by operating cash flow (20.2%).

Interest Coverage: ACCO's interest payments on its debt are well covered by EBIT (5.3x 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 0.8x debt).


Next Steps

Dividend

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

2.74%

Current Dividend Yield


Upcoming Dividend Payment

Purchase ACCO Brands before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ACCO's dividend (2.77%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ACCO's dividend (2.77%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 (24.6%), 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

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

5.6yrs

Average management tenure


CEO

Boris Elisman (56yo)

6.7yrs

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 ($USD4.68M) is above average for companies of similar size in the US market ($USD2.64M).

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


Management Age and Tenure

5.6yrs

Average Tenure

55.5yo

Average Age

Experienced Management: ACCO's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

63yo

Average Age

Experienced Board: ACCO's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: ACCO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$166,49309 Sep 19
Kathleen Hood
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares17,874
Max PriceUS$9.31
SellUS$125,22628 Aug 19
Gregory McCormack
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Global Products & Operations
Shares13,608
Max PriceUS$9.20
SellUS$189,78215 Aug 19
Ralph Hargrow
EntityIndividual
Shares19,977
Max PriceUS$9.50

Ownership Breakdown

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


Management Team

  • Neal Fenwick (57yo)

    Executive VP & CFO

    • Tenure: 14.8yrs
    • Compensation: US$1.57m
  • Boris Elisman (56yo)

    Chairman

    • Tenure: 6.7yrs
    • Compensation: US$4.68m
  • Pam Schneider (59yo)

    Senior VP

    • Tenure: 7.6yrs
    • Compensation: US$1.23m
  • Cezary Monko (57yo)

    Executive VP & President

    • Tenure: 2.7yrs
    • Compensation: US$1.52m
  • Greg McCormack (55yo)

    Senior Vice President of Global Products & Operations

    • Tenure: 1.8yrs
  • Tom Tedford (48yo)

    Executive VP & President of ACCO Brands North America

    • Tenure: 8.8yrs
    • Compensation: US$1.79m
  • Jennifer Rice

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Kathy Hood (49yo)

    Senior VP

    • Tenure: 4.6yrs
  • Rich Nelson

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Stephen Byers (53yo)

    Senior VP & Chief Information Officer

    • Tenure: 0.8yrs

Board Members

  • E. Rajkowski (60yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$210.00k
  • Tom Kroeger (70yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$215.00k
  • Bob Keller (65yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$196.00k
  • Kathy Dvorak (62yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$215.00k
  • Pradeep Jotwani (64yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$209.88k
  • Jim Buzzard (64yo)

    Lead Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$220.00k
  • Hans Norkus (72yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$207.50k
  • Boris Elisman (56yo)

    Chairman

    • Tenure: 6.7yrs
    • Compensation: US$4.68m
  • Ron Lombardi (55yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$203.06k
  • Graciela Monteagudo (52yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$195.00k

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$920.403m
  • 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. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 00:02
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.