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ACCO Brands (ACCO)
NYSE:ACCO
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ACCO Brands
(NYSE:ACCO)
48Neutral
Positive Factors
Cost Savings
ACCO realized approximately $25 million of cost savings from its multi-year restructuring plan, above the initial target of approximately $20 million.
Product Innovation
ACCO continues to invest in product innovation and is working to develop products that cater to the changing nature and location of work.
Negative Factors
Sales Decline
Q4/24 sales declined -8.3% YOY to $448.1 million, driven by an unfavorable movement in currency exchange rates.
ACCO Brands (ACCO) vs. S&P 500 (SPY)
Market Cap
$443.97M
Dividend Yield6.28%
Average Volume (3M)956.28K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-9.09%
EPS Growth-356.14%
CountryUS
Employees5,600
SectorIndustrials
Sector Strength69
IndustryIndustrial Goods
Share Statistics
EPS (TTM)-1.05
Shares Outstanding92,881,004
10 Day Avg. Volume1,163,158
30 Day Avg. Volume956,279
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)2.10
P/FCF Ratio1.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.50Price Target Upside100.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
ACCO Brands Business Overview & Revenue Model
Company DescriptionACCO Brands Corp. engages in the manufacture and marketing of office, school, calendar products, and select computer and electronic accessories. It operates through the followings segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The ACCO Brands North America segment includes the U.S. and Canada operations, wherein it manufactures, sources, and sells traditional office products, school supplies, and calendar products. The ACCO Brands EMEA segment deals with the design, sourcing, and distribution of storage and organization products, stapling, punching, laminating, binding and shredding products, do-it-yourself tools, and computer accessories in Europe, the Middle East, and Africa. The ACCO Brands International segments refers to the operations from the rest of the world, primarily Australia/New Zealand, Latin America, and Asia-Pacific The company was founded by Fred J. Kline in 1903 and is headquartered in Lake Zurich, IL.
How the Company Makes MoneyACCO Brands generates revenue through the sale of its diverse range of products across various consumer segments, including businesses, educational institutions, and individual consumers. The company's key revenue streams include the direct sale of office and school supplies, computer accessories, and print finishing solutions. ACCO Brands also engages in partnerships and distribution agreements with retailers, wholesalers, and online platforms to expand its market reach. Furthermore, the company benefits from maintaining a broad portfolio of recognized brands that cater to different customer needs, enhancing its competitive advantage and sustaining its earnings.
ACCO Brands Financial Statement Overview
Summary
ACCO Brands is facing challenges in revenue and profitability, with declining income statement figures. The balance sheet shows improvements in debt levels but weakened equity, while cash flow remains a bright spot with strong operating performance despite net losses. Overall, the company demonstrates resilience in cash flow management, but needs to address revenue and profitability issues for a more stable financial outlook.Income Statement
ACCO Brands has experienced a decline in revenue over recent years, with a notable drop in 2024 to $1.67 billion from $1.83 billion in 2023. The company also reported a net loss of $101.6 million in 2024, worsening from a net loss of $21.8 million in 2023. The gross profit margin was 33.3% in 2024, down from 32.6% in 2023, indicating some improvement. However, significant negative EBIT and EBITDA margins in 2024 highlight operational challenges. The income statement reflects declining revenue and profitability issues.45
Neutral
Balance Sheet
The balance sheet shows a decrease in total assets to $2.23 billion in 2024 from $2.64 billion in 2023, with total debt also declining to $139.7 million from $1.02 billion. This reduction in debt positively affects the debt-to-equity ratio, which improved to 0.23 from 1.29. However, the stockholders' equity decreased to $606.1 million from $787 million, impacting the equity ratio, which stood at 27.2% in 2024. The balance sheet reflects improved leverage but weakened equity positioning.50
Neutral
Cash Flow
ACCO Brands showed positive operating cash flow of $148.2 million in 2024, up from $128.7 million in 2023, indicating improved cash generation. Free cash flow also improved to $132.3 million from $114.9 million. The operating cash flow to net income ratio highlights strong cash flow relative to net losses, suggesting effective cash management. Overall, the cash flow statement shows strong operational cash flow performance amid net losses.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.06B | 1.67B | 1.83B | 1.95B | 2.03B | 1.66B | Gross Profit |
| 604.90M | 555.40M | 598.30M | 552.30M | 614.90M | 492.40M | EBIT |
| 169.20M | -37.00M | 44.70M | 159.80M | 151.00M | 112.40M | EBITDA |
| 257.60M | -37.00M | 121.60M | 139.90M | 243.40M | 188.10M | Net Income Common Stockholders |
| 110.40M | -101.60M | -21.80M | -13.20M | 101.90M | 62.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 62.20M | 74.10M | 66.40M | 62.20M | 41.20M | 36.60M | Total Assets |
| 2.79B | 2.23B | 2.64B | 2.79B | 3.09B | 3.05B | Total Debt |
| 1.09B | 139.70M | 1.02B | 1.09B | 1.11B | 1.23B | Net Debt |
| 1.03B | 65.60M | 949.80M | 1.03B | 1.07B | 1.19B | Total Liabilities |
| 1.98B | 1.62B | 1.86B | 1.98B | 2.23B | 2.31B | Stockholders Equity |
| 810.10M | 606.10M | 787.00M | 810.10M | 864.80M | 742.70M |
| Cash Flow | Free Cash Flow | ||||
| 97.90M | 132.30M | 114.90M | 61.10M | 138.40M | 103.90M | Operating Cash Flow |
| 116.80M | 148.20M | 128.70M | 77.60M | 159.60M | 119.20M | Investing Cash Flow |
| -18.70M | -12.30M | -11.20M | -9.30M | -5.80M | -354.70M | Financing Cash Flow |
| -83.50M | -122.60M | -117.70M | -48.30M | -147.20M | 244.70M |
ACCO Brands Technical Analysis
Negative
4.75
Price Trends
5.05
Negative
5.33
Negative
5.13
Negative
Market Momentum
-0.15
Negative
47.30
Neutral
79.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACCO, the sentiment is Negative. The current price of 4.75 is below the 20-day moving average (MA) of 4.85, below the 50-day MA of 5.05, and below the 200-day MA of 5.13, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 79.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACCO.
ACCO Brands Risk Analysis
ACCO Brands disclosed 28 risk factors in its most recent earnings report. ACCO Brands reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ACCO Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $873.61M | 9.04 | 11.09% | ― | -6.02% | -10.65% | |
68 Neutral | $4.15B | 14.06 | 6.45% | 2.58% | -12.21% | -51.31% | |
62 Neutral | $8.16B | 12.81 | 0.47% | 3.07% | 3.83% | -16.36% | |
49 Neutral | $486.02M | 33.88 | 9.43% | ― | -10.71% | -86.13% | |
48 Neutral | $443.97M | ― | -14.59% | 6.28% | -9.09% | -356.14% |
* Industrials Sector Average
Performance Comparison
ACCO
ACCO Brands
4.75
-0.36
-7.05%
AMWD
American Woodmark
58.45
-36.18
-38.23%
AVT
Avnet
46.90
-0.32
-0.68%
ODP
ODP
16.10
-35.39
-68.73%
ACCO Brands Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -13.95% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
ACCO Brands Corporation showed strong execution in cost reduction and debt management, leading to improved margins and cash flow. However, challenges such as sales decline, foreign currency impacts, and weakness in Brazil, along with an uncertain 2025 outlook, present significant hurdles.Highlights
Successful Cost Reduction Program
ACCO implemented a $60 million multiyear cost reduction program in 2024 and realized approximately $25 million in savings during the year. The company expanded the program target to $100 million by 2026.
Strong Free Cash Flow and Debt Reduction
The company delivered free cash flow of $132 million for 2024 and reduced net debt by $94 million throughout the year.
Improved Financial Position and Capital Allocation
ACCO refinanced its bank credit facilities, extending maturity dates to 2029, and expanded its capital allocation program to include share repurchases.
Growth in Technology Accessories
The company experienced growth in technology accessories, driven by new product introductions and international expansion, particularly in the gaming sector.
International Segment Margin Improvement
The international adjusted operating income margin for Q4 2024 increased by 90 basis points to 16.5% due to pricing and cost reduction actions.
Lowlights
Sales Decline
Reported sales in Q4 2024 decreased by 8%, with comparable sales down 6% due to lower volumes globally and continued weakness in Brazil.
Foreign Currency Impact
Unfavorable foreign currency exchange rates resulted in $12 million lower sales and $0.02 lower EPS in Q4 2024.
Challenges in Brazil
Continued weakness in Brazil affected sales, and consumer trends showed trading down, impacting price points.
Uncertain Outlook for 2025
The company anticipates a volatile demand environment in 2025 due to global economic uncertainties, potential additional tariffs, and a strong US dollar.
First Quarter Weakness Expected
ACCO expects Q1 2025 comparable sales to be down 5% to 8%, with adverse foreign exchange as a significant headwind.
Company Guidance
During ACCO Brands Corporation's 2024 Q4 and full-year earnings call, key metrics were highlighted, including a free cash flow of $132 million and a net debt reduction of $94 million. The company implemented a $60 million multiyear cost reduction program in 2024, achieving $25 million in savings and expanding its operating margin by 70 basis points. Looking forward, ACCO aims for an additional $40 million in cost savings by 2026, targeting $100 million in total savings. For 2025, ACCO anticipates flat sales with an adjusted EPS range of $1.00 to $1.05, despite expecting a 1% to 5% sales decline. The adjusted tax rate is predicted to be approximately 30%, with free cash flow between $105 million and $115 million. For the first quarter of 2025, ACCO forecasts a 5% to 8% decline in comparable sales and a loss per share between $0.03 and $0.05. The company remains committed to strategic M&A opportunities while maintaining leverage targets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.