ACCO Brands Corporation
ACCO Brands Corporation Fundamental Analysis
ACCO Brands Corporation (ACCO) shows moderate financial fundamentals with a PE ratio of 4.79, profit margin of 4.76%, and ROE of 11.26%. The company generates $1.5B in annual revenue with weak year-over-year growth of -8.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ACCO's fundamental strength across five key dimensions:
Efficiency Score
WeakACCO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentACCO trades at attractive valuation levels.
Growth Score
WeakACCO faces weak or negative growth trends.
Financial Health Score
ExcellentACCO maintains a strong and stable balance sheet.
Profitability Score
WeakACCO struggles to sustain strong margins.
Key Financial Metrics
Is ACCO Expensive or Cheap?
P/E Ratio
ACCO trades at 4.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ACCO's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values ACCO Brands Corporation at 0.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.94 times EBITDA. This is generally considered low.
How Well Does ACCO Make Money?
Net Profit Margin
For every $100 in sales, ACCO Brands Corporation keeps $4.76 as profit after all expenses.
Operating Margin
Core operations generate 6.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.26 in profit for every $100 of shareholder equity.
ROA
ACCO Brands Corporation generates $3.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ACCO Brands Corporation generates limited operating cash flow of $66.45M, signaling weaker underlying cash strength.
Free Cash Flow
ACCO Brands Corporation produces free cash flow of $48.72M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.53 in free cash annually.
FCF Yield
ACCO converts 13.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ACCO Stacks Against Its Sector Peers
| Metric | ACCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.79 | 26.09 | Better (Cheaper) |
| ROE | 11.26% | 1258.00% | Weak |
| Net Margin | 4.76% | -33493.00% (disorted) | Weak |
| Debt/Equity | 0.19 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.77 | 10.37 | Neutral |
| ROA | 3.24% | -1482877.00% (disorted) | Weak |
ACCO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ACCO Brands Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.08%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-31.36%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-40.61%
Industry Style: Cyclical, Value, Infrastructure
Declining