ACCO Brands (ACCO) AI Stock Analysis

• Market Cap: $299.25M
• Dividend Yield: 9.04%
• Average Volume (3M): 699.48K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.30
• Revenue Growth: -9.53%
• EPS Growth: N/A
• Country: US
• Employees: 5,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.21
• Shares Outstanding: 90,136,130
• 10 Day Avg. Volume: 927,133
• 30 Day Avg. Volume: 699,481
• PEG Ratio: -0.01
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 3.79
• Enterprise Value/Market Cap: 4.18
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: 8.41
• 1Y Price Target: $7.50
• Price Target Upside: 125.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.85
• Revenue Forecast (FY): $1.53B

• Rating: 59 Neutral
• Price Target: $3.50 ▲(5.42% Upside)

ACCO Brands' overall stock score reflects a mixed financial performance with some positive operational improvements but ongoing challenges in revenue and profitability. The technical analysis indicates bearish momentum, though the stock is currently oversold. Valuation metrics suggest the stock is undervalued, offering a high dividend yield. The earnings call highlighted strategic progress but also underscored significant sales and demand challenges.

Positive Factors

Cost Reduction Program

ACCO's $100 million cost reduction program enhances operational efficiency, improving margins and positioning the company for sustainable growth.

Market Share Growth

Increased market share in key brands indicates strong competitive positioning and brand loyalty, supporting long-term revenue stability.

Debt Reduction

Significant debt reduction strengthens ACCO's balance sheet, reducing leverage risk and enhancing financial flexibility for future investments.

Negative Factors

Declining Revenue

Continued revenue decline suggests challenges in market demand and competitive pressures, potentially impacting long-term profitability.

Demand Constraints

Global demand constraints due to macroeconomic factors may limit growth opportunities and affect ACCO's revenue potential in the near term.

Sales Decline in Key Regions

Sales declines in Brazil and Europe highlight regional challenges that could hinder ACCO's international growth and market expansion efforts.

ACCO Brands Business Overview & Revenue Model

Company Description

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. 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 Money

ACCO Brands generates revenue through the sale of its diverse portfolio of office and school supplies across multiple distribution channels, including retail, wholesale, and direct-to-consumer. The company's key revenue streams are derived from the sales of its branded products, which include office accessories, binding and laminating equipment, and presentation tools. ACCO also benefits from strategic partnerships with major retailers and distributors, enhancing its market reach and visibility. Additionally, the company invests in product innovation and marketing initiatives to drive customer engagement and sales growth, while managing its supply chain efficiently to control costs and maximize profitability.

ACCO Brands Financial Statement Overview

Summary

ACCO Brands shows a mixed financial performance. Improvements in operational efficiency and a stronger balance sheet due to reduced debt are positive. However, challenges remain with declining revenue and limited profitability. The cash flow position is stable but shows room for improvement in growth.

Income Statement

ACCO Brands shows a mixed performance in its income statement. The TTM data indicates a gross profit margin of 33.12%, which is relatively stable compared to previous years. However, the net profit margin is low at 2.63%, reflecting challenges in converting revenue into profit. The revenue growth rate is negative, indicating a decline in sales. Despite these challenges, the company has improved its EBIT and EBITDA margins compared to the previous year, suggesting better operational efficiency.

Balance Sheet

The balance sheet reveals a significant reduction in total debt, leading to a much-improved debt-to-equity ratio of 0.19 in the TTM period, down from 1.52 in the previous year. This indicates a stronger financial position and reduced leverage risk. However, the return on equity is modest at 6.51%, suggesting limited profitability relative to shareholder equity. The equity ratio is not explicitly calculated but appears stable given the reduction in debt.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative rate of -24.58% in the TTM period. The operating cash flow to net income ratio is 0.21, indicating that operating cash flow is not significantly higher than net income, which could limit reinvestment opportunities. The free cash flow to net income ratio is relatively strong at 78.41%, suggesting that a good portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.54B	1.67B	1.83B	1.95B	2.03B	1.66B
Gross Profit	511.40M	555.40M	598.30M	552.30M	614.90M	492.40M
EBITDA	148.80M	38.40M	121.60M	139.90M	243.40M	188.10M
Net Income	40.60M	-101.60M	-21.80M	-13.20M	101.90M	62.00M
Balance Sheet
Total Assets	2.26B	2.23B	2.64B	2.79B	3.09B	3.05B
Cash, Cash Equivalents and Short-Term Investments	82.50M	74.10M	66.40M	62.20M	41.20M	36.60M
Total Debt	962.30M	923.00M	1.02B	1.09B	1.11B	1.23B
Total Liabilities	1.61B	1.62B	1.86B	1.98B	2.23B	2.31B
Stockholders Equity	644.00M	606.10M	787.00M	810.10M	864.80M	742.70M
Cash Flow
Free Cash Flow	71.20M	132.30M	114.90M	61.10M	138.40M	103.90M
Operating Cash Flow	90.80M	148.20M	128.70M	77.60M	159.60M	119.20M
Investing Cash Flow	-9.70M	-12.30M	-11.20M	-9.30M	-5.80M	-354.70M
Financing Cash Flow	-105.40M	-122.60M	-117.70M	-48.30M	-147.20M	244.70M

ACCO Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.32 is below the 20-day moving average (MA) of 3.49, below the 50-day MA of 3.74, and below the 200-day MA of 3.77, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 37.88 is Neutral, neither overbought nor oversold. The STOCH value of -3.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACCO.

ACCO Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBF	73 Outperform	$437.50M	10.51	12.71%	5.96%	-3.92%	3.04%
SCS	73 Outperform	$1.85B	20.32	9.46%	2.54%	3.92%	-24.47%
AVY	73 Outperform	$13.18B	19.36	30.21%	2.00%	1.03%	5.52%
HNI	72 Outperform	$1.80B	13.15	16.83%	3.30%	1.15%	16.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACTG	63 Neutral	$316.34M	―	0.90%	―	71.28%	-89.20%
ACCO	59 Neutral	$299.25M	7.72	6.45%	9.04%	-9.53%	―