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ACCO Brands (ACCO)
NYSE:ACCO
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ACCO Brands (ACCO) AI Stock Analysis

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ACCO

ACCO Brands

(NYSE:ACCO)

Rating:67Neutral
Price Target:
$4.50
▲(11.39% Upside)
ACCO Brands' overall score reflects a balance of improving financial performance and attractive valuation, offset by mixed earnings call sentiment and technical indicators suggesting caution. The company's strong cash flow and cost reduction initiatives are positive, but sales declines and high leverage remain significant risks.
Positive Factors
Cost Savings
The company’s multi-year restructuring program has yielded $15 million of cost savings in the first half of 2025 and more than $40 million to-date.
Gaming Accessories Growth
Growth in gaming accessories was driven by the launch of the Nintendo Switch 2 gaming console and ACCO’s continued international expansion efforts for gaming accessories.
Sales Trends
Improved sales trends are expected in the second half of 2025.
Negative Factors
Macroeconomic Uncertainty
Sales continued to be impacted by a generally soft demand environment as spending by businesses and consumers remained constrained due to macroeconomic uncertainty.
Market Uncertainties
Due to increased market uncertainties driven by global trade dynamics, ACCO has limited visibility beyond Q2/25 and withdrew its full-year 2025 guidance.
Sales Decline
Q1/25 sales declined -11.6% YOY on a reported basis to $317.4 million, with sales continuing to be impacted by a generally soft demand environment.

ACCO Brands (ACCO) vs. SPDR S&P 500 ETF (SPY)

ACCO Brands Business Overview & Revenue Model

Company DescriptionACCO 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. It offers its products under the AT-A-GLANCE, Barrilito, Derwent, Esselte, Five Star, Foroni, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, PowerA, Quartet, Rapid, Rexel, Swingline, Tilibra, TruSens, and Spirax brand names. 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; contract stationers; and technology specialty businesses, as well as sells products directly to commercial and consumer end-users through its e-commerce platform and direct sales organization. ACCO Brands Corporation was founded in 1893 and is headquartered in Lake Zurich, Illinois.
How the Company Makes MoneyACCO Brands primarily generates revenue through the sale of its diverse range of products across various distribution channels, including wholesalers, retailers, and direct-to-consumer platforms. The company's revenue model is driven by multiple key streams, including the sale of office supplies, school supplies, and specialty products. Additionally, ACCO benefits from strategic partnerships with major retailers and distributors, which enhance its market reach and visibility. Seasonal trends, particularly back-to-school shopping, significantly impact sales volume, while ongoing demand for organizational and productivity tools in both educational and professional settings contributes to stable revenue growth.

ACCO Brands Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for ACCO Brands, with significant achievements in cost reduction and strategic initiatives offset by considerable sales declines and demand challenges in key segments. The company is taking proactive measures to address these issues, including price increases and supply chain optimizations.
Q2-2025 Updates
Positive Updates
Cost Reduction Program Progress
ACCO Brands has made excellent progress on its $100 million multiyear cost reduction program, realizing additional savings in the second quarter that brought the cumulative program total to over $40 million.
Gaming Accessories Growth
PowerA delivered modest growth in gaming accessories, driven by the Nintendo Switch 2 launch and continued international expansion. This is expected to lead to more meaningful sales in the coming quarters.
Strategic Price Increases
ACCO Brands announced two strategic price increases, maintaining their competitive position while securing improved terms with third-party manufacturing partners and accelerating production shifts to cost-competitive countries.
Integration of Buro Seating
The acquisition of Buro Seating has been fully integrated, strengthening ACCO Brands' position in Australia and New Zealand, with potential expansion opportunities in additional markets.
Resolution of Brazilian Tax Assessment
ACCO Brands successfully settled long-standing tax assessments in Brazil, resolving a $20 million reserve for $7 million.
Negative Updates
Sales Decline
Consolidated second quarter comparable sales were down 10.5%, with specific declines in the Americas and International segments, largely due to tariff announcements and weak demand.
Soft Demand in Back-to-School Products
Sales for back-to-school products were down as U.S. retailers were cautious with early season orders. The back-to-school season is forecasted to be down mid- to high single digits in the U.S. and Canada.
Challenges in Latin America
Sales were weaker than expected in Latin America, particularly in Mexico due to a constrained consumer and competition at lower price points.
Decline in Office Products Sales
Global sales of office products were soft in the quarter, with demand remaining soft in European markets like Germany, the U.K., and France.
Decreased Gross Profit Margin
Gross profit for the second quarter was $130 million, a decrease of 15% with the margin rate contracting by about 200 basis points to 32.9%.
Company Guidance
During the ACCO Brands Second Quarter 2025 Conference Call, the company provided guidance for both the third quarter and the full fiscal year. ACCO Brands expects third-quarter reported sales to decline by 5% to 8%, with the foreign exchange expected to positively impact results. Adjusted earnings per share (EPS) for the third quarter are projected to range between $0.21 and $0.24. For the full year, the company anticipates reported sales to decrease by 7% to 8.5%, with adjusted EPS expected to be between $0.83 and $0.90. Additionally, ACCO Brands is targeting an adjusted free cash flow of approximately $100 million, including proceeds from asset sales, and expects to achieve a leverage ratio of 3.8x to 3.9x by year-end. The company is confident in its ability to navigate the current market dynamics and is focused on long-term sales growth through organic and inorganic initiatives, aiming for a gross margin of 33% to 34%.

ACCO Brands Financial Statement Overview

Summary
ACCO Brands shows improving financial health with operational efficiency gains and strong cash flow performance. However, high leverage and historic profitability issues remain challenges.
Income Statement
65
Positive
ACCO Brands has shown fluctuating revenue trends with a recent TTM decline. The gross profit margin is stable at around 33%. The net profit margin turned positive in the TTM after previous negative results, indicating a potential turnaround. EBIT and EBITDA margins improved, signaling operational efficiency gains.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio has improved due to reduced debt, but remains relatively high. Return on equity has shown improvement but remains low, reflecting previous profitability challenges. The equity ratio is stable, indicating a balanced asset structure against liabilities.
Cash Flow
70
Positive
Free cash flow has grown significantly in the TTM, indicating robust cash generation. Operating cash flow to net income and free cash flow to net income ratios are strong, reflecting efficient cash management despite past net income losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.58B1.67B1.83B1.95B2.03B1.66B
Gross Profit521.70M555.40M598.30M552.30M614.90M492.40M
EBITDA154.50M38.40M121.60M139.90M243.40M188.10M
Net Income45.90M-101.60M-21.80M-13.20M101.90M62.00M
Balance Sheet
Total Assets2.38B2.23B2.64B2.79B3.09B3.05B
Cash, Cash Equivalents and Short-Term Investments133.30M74.10M66.40M62.20M41.20M36.60M
Total Debt129.70M923.00M1.02B1.09B1.11B1.23B
Total Liabilities1.74B1.62B1.86B1.98B2.23B2.31B
Stockholders Equity637.30M606.10M787.00M810.10M864.80M742.70M
Cash Flow
Free Cash Flow94.40M132.30M114.90M61.10M138.40M103.90M
Operating Cash Flow112.20M148.20M128.70M77.60M159.60M119.20M
Investing Cash Flow-7.90M-12.30M-11.20M-9.30M-5.80M-354.70M
Financing Cash Flow-88.30M-122.60M-117.70M-48.30M-147.20M244.70M

ACCO Brands Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.04
Price Trends
50DMA
3.77
Positive
100DMA
3.66
Positive
200DMA
4.24
Negative
Market Momentum
MACD
0.08
Negative
RSI
62.47
Neutral
STOCH
66.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACCO, the sentiment is Positive. The current price of 4.04 is above the 20-day moving average (MA) of 3.87, above the 50-day MA of 3.77, and below the 200-day MA of 4.24, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.47 is Neutral, neither overbought nor oversold. The STOCH value of 66.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$480.05M12.3312.00%18.94%-5.64%-5.74%
75
Outperform
$1.96B16.5212.87%2.33%2.64%37.59%
74
Outperform
$2.12B15.0318.50%2.87%-0.83%28.96%
70
Outperform
$13.03B18.7031.68%2.17%1.66%14.38%
67
Neutral
$363.23M8.357.32%7.43%-8.80%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
56
Neutral
$322.13M7.73-1.17%62.44%-109.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ACCO
ACCO Brands
4.04
-0.86
-17.55%
ACTG
Acacia Research
3.30
-1.40
-29.79%
AVY
Avery Dennison
168.06
-47.18
-21.92%
EBF
Ennis
18.48
-0.96
-4.94%
HNI
HNI
46.72
-2.01
-4.12%
SCS
Steelcase
17.14
4.50
35.60%

ACCO Brands Corporate Events

Business Operations and StrategyFinancial Disclosures
ACCO Brands Reports Q2 Results Amid Cost Savings
Neutral
Jul 31, 2025

On July 31, 2025, ACCO Brands Corporation reported its second quarter financial results, noting net sales of $395 million and adjusted earnings per share of $0.28, both within the company’s outlook. Despite a 9.9% decline in net sales compared to the previous year, the company benefited from a multi-year cost reduction program yielding over $40 million in savings. ACCO Brands also amended its credit agreement to increase its maximum consolidated leverage ratio through 2026. The company expects sales to improve in the third quarter as economies stabilize and plans to launch new products across multiple categories, aiming to enhance long-term shareholder value.

Executive/Board Changes
ACCO Brands Announces Leadership Transition with New Appointment
Neutral
Jul 3, 2025

ACCO Brands Corporation announced that Pamela R. Schneider, Senior Vice President, General Counsel and Corporate Secretary, will retire, with her resignation effective August 4, 2025. Kathryn D. Ingraham has been appointed as her successor, and Schneider will assist in the transition until September 30, 2025.

Executive/Board ChangesBusiness Operations and Strategy
ACCO Brands Restructures Leadership for Cost Reduction
Neutral
Jun 10, 2025

On June 4, 2025, ACCO Brands Corporation announced a restructuring of its executive leadership as part of a multi-year cost reduction initiative. The roles of Executive Vice President and President for both the Americas and International segments will be eliminated, with Patrick Buchenroth and Cezary Monko resigning from their positions. This move aims to simplify the company’s operating structure and enhance global sourcing capabilities. New leadership appointments include John ‘Jed’ Peters and Rubens Passos for the Americas segment, and Ard-Jen ‘AJ’ Spijkervet for the International segment. These changes are expected to position the company for sustained, profitable growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 22, 2025