ACCO Brands Q3 Earnings: Is NYSE:ACCO Cheap at 8.8x Forward P/E?


ACCO Brands Corporation (NYSE:ACCO) is scheduled to report Q3 earnings results after markets close for trading on October 27, 2020.

The company is expected to report earnings of $0.15/share on revenue of $410.3 million. The consensus earnings per share (EPS) of $0.15/share is based on a poll of 5 analysts and represents a decline in eps of −53.1% over the same quarter last year, when the company reported earnings of $0.32/share.

The revenue forecast of $410.3 million based on a poll of 6 analysts implies a year-over-year (YoY) decline in revenue of −18.9%. Last year the company reported $505.7 million in revenue for the quarter.

Expected to report EPS contraction of −53.1% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $410.33 $505.70 −18.9%
EPS $0.15 $0.32 −53.1%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.

What are your expectations from ACCO Brands Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0 $0.12 Beat
Q1, 2020 $0.09 $0.07 −23.9% Missed
Q4, 2019 $0.41 $0.46 11.1% Beat
Q3, 2019 $0.34 $0.32 −5.9% Missed
Q2, 2019 $0.32 $0.36 13.2% Beat
Q1, 2019 $0.06 $0.08 37.9% Beat
Q4, 2018 $0.43 $0.41 −5.1% Missed
Q3, 2018 $0.35 $0.34 −4.0% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 1.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 28, 2020 $6.86 $6.99 1.9% Increase
May 4, 2020 $7.11 $6.30 −11.4% Decline
February 11, 2020 $9.11 $10.31 13.2% Increase
October 29, 2019 $10.05 $8.92 −11.2% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.96, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.96 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

ACCO Brands Corporation is currently trading at $6.40/share, down −0.6% for the day. The company is trading at approximately 56.2% of its 52-week high of $11.38/share. The company’s stock price is down −8.4% since the last earnings report and down −4.2% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 49.32 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:ACCO Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 7.12 and a forward P/E multiple of 8.82.

ACCO Brands Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.85. The following table summarizes some other key fundamental ratios:

Data as of October 21, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $6.40
P/E Ratio 7.1x
P/E Ratio (Fwd) 8.8x
PEG Ratio −0.5
Total Debt / Total Capital 64.8%
Levered Free Cash Flow $225.1 million
EV / EBITDA 6.7x


ACCO Brands Corporation is a small-cap stock with a market capitalization of $604.6 million and a total enterprise value of $1.597 billion. The company operates in the Industrials sector and the Commercial Services & Supplies industry.

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. The company offers school notebooks, calendars, planners, dry erase boards, and janitorial supplies; storage and organization products, such as three-ring and lever-arch binders, sheet protectors, and indexes; laminating, binding, and shredding machines; writing instruments; stapling and punching products; do-it-yourself tools; and computer accessories and others used in schools, homes, and businesses. It offers its products primarily under the AT-A-GLANCE, Barrilito, Derwent, Esselte, Five Star, Foroni, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Spirax, and Wilson Jones 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; and contract stationers, 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.

Expertise: financial technology, analyzing market trends. Brian is a founder at, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at or at +1 (516) 778-6257.

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