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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ACCO

ACCO Brands Corporation's recent performance was negatively impacted by its Q3 earnings miss, with quarterly earnings of $0.21 per share, falling short of the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.23 per share a year ago. The company's third-quarter results, reported on October 30, 2025, seem to have disappointed investors. Additionally, while not directly related to ACCO Brands' performance, a recent product launch by Kensington, a subsidiary, may not have contributed to the parent company's earnings.

1.c. Company Highlights

2. ACCO Brands' Q3 2025 Earnings: Navigating a Challenging Environment

ACCO Brands reported a decline in third-quarter sales of 9% due to softer demand globally, trade down in some categories, and slower implementation of tariff-related price increases. However, the company managed to meet its adjusted EPS outlook, with a reported EPS of $0.21, slightly below estimates of $0.22. Gross margin rate improved by 50 basis points, driven by the company's footprint rationalization and cost reductions. Adjusted operating income for the third quarter was $39 million, down from $45 million a year ago.

Publication Date: Nov -18

📋 Highlights
  • Sales Decline and Margin Improvement:: Q3 sales fell 9% year-over-year, but gross margins improved 50 basis points, with adjusted operating income at $39M (down from $45M in prior year).
  • Full-Year Guidance Reaffirmed:: Full-year sales expected to decline 7-8.5%, with adjusted EPS of $0.83-$0.90 and adjusted free cash flow of $90M-$100M (including $17M from asset sales).
  • Back-to-School Success in Americas:: U.S. and Canadian sales met expectations, with Five Star and Mead gaining market share, despite weaker Latin American performance due to constrained demand.
  • Technology Segment Recovery:: Kensington sales declined modestly in Q3 but anticipate Q4 growth from new product launches, while PowerA expects Q4 growth in gaming accessories.
  • Strategic Focus on Innovation and Expansion:: Pipeline of IP-driven products, exploration of acquisitions, and channel diversification into healthcare and vertical markets to drive future growth.

Segment Performance

The Americas segment saw sales for the back-to-school season in the U.S. and Canada finish in line with expectations, with leading student notetaking brands, Five Star and Mead, growing market share. However, sales in Latin America were weaker than expected due to a constrained consumer and trade down in the quarter. The global technology businesses, including Kensington computer accessories, declined modestly in the quarter but are expected to return to growth in the fourth quarter driven by new product launches.

Outlook and Guidance

ACCO Brands remains cautious about the current environment but is confident in its ability to navigate this dynamic period. The company is reaffirming its sales and adjusted EPS guidance for the full year, with reported sales expected to be down 7% to 8.5% and adjusted EPS to be within the range of $0.83 to $0.90. The company expects adjusted free cash flow to be within a range of approximately $90 million to $100 million.

Valuation and Growth Prospects

With a P/E Ratio of 7.5 and an EV/EBITDA of 2.22, ACCO Brands' valuation appears reasonable. Analysts estimate next year's revenue growth at 0.8%, indicating a slow but steady recovery. The company's strong pipeline of innovative new products and its focus on repositioning the company for growth through organic and inorganic initiatives are expected to drive future growth. The Dividend Yield of 9.04% is also attractive, providing a relatively stable return for investors.

Operational Highlights

The company has an impressive pipeline of new products, including the West Village line by Mead, which offers premium products at accessible price points. ACCO Brands is also shifting its focus to verticals like healthcare and leveraging its Kensington business's end-user selling organization to drive growth. With a balanced channel approach in North America and a strong supply chain, the company is well-positioned for the 2026 season.

3. NewsRoom

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ACCO GROUP HOLDINGS LIMITED ANNOUNCES PARTIAL EXERCISE OF UNDERWRITERS' OVER-ALLOTMENT OPTION

Nov -19

Source: globenewswire.com

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Somnigroup Accelerates, ACCO Brands Stalls Out: Cyclical Pair Trade Idea

Nov -17

Source: seekingalpha.com

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Kensington Thunderbolt 5 Docks Maximize Speed, Storage, and Productivity for Power Users

Nov -12

Source: businesswire.com

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ACCO Brands Corporation (ACCO) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Acco Brands (ACCO) Misses Q3 Earnings and Revenue Estimates

Oct -30

Source: zacks.com

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ACCO Brands Reports Third Quarter Results

Oct -30

Source: businesswire.com

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Kensington Announces Flagship Finger-Operated Trackball for Creative Professionals

Oct -28

Source: businesswire.com

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ACCO GROUP HOLDINGS LIMITED ANNOUNCES CLOSING OF INITIAL PUBLIC OFFERING

Oct -20

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.88%)

6. Segments

ACCO Brands North America

Expected Growth: 4.83%

ACCO Brands North America's 4.83% growth is driven by increasing demand for back-to-school and office supplies, strategic acquisitions, and effective cost management. The segment benefits from a strong brand portfolio, including Mead, Five Star, and Trapper Keeper, which enables market share gains and pricing power. Additionally, investments in e-commerce and digital marketing contribute to growth.

ACCO Brands EMEA

Expected Growth: 4.77%

ACCO Brands EMEA's 4.77% growth is driven by increasing demand for office supplies, expansion in emerging markets, and strategic acquisitions. The segment benefits from a strong brand portfolio, including Swingline, Quartet, and Rexel, and a diversified customer base across Europe, Middle East, and Africa. Additionally, investments in e-commerce and digital marketing have enhanced customer engagement and fueled growth.

ACCO Brands International

Expected Growth: 5.15%

ACCO Brands International's 5.15% growth is driven by increasing demand for office supplies, expansion in emerging markets, and strategic acquisitions. The segment benefits from a diversified product portfolio, including popular brands like Swingline, Quartet, and Kensington. Additionally, the company's focus on e-commerce and digital marketing initiatives has contributed to its growth momentum.

7. Detailed Products

Five Star Notebooks

High-quality notebooks designed for students and professionals, offering durable bindings, premium paper, and stylish covers.

Swingline Staplers

Reliable and efficient stapling solutions for offices, homes, and schools, offering a range of stapling capacities and features.

Quartet Whiteboards

Durable and versatile whiteboards designed for presentations, brainstorming, and collaboration in offices, schools, and homes.

Kensington Computer Accessories

Innovative and functional computer accessories, including laptop locks, trackballs, and docking stations, designed for security and productivity.

Day-Timer Planners

Customizable and organized planners designed to help individuals manage time, prioritize tasks, and increase productivity.

Wilson Jones Binders

High-quality binders and accessories designed for organizing, storing, and presenting documents, reports, and presentations.

8. ACCO Brands Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

ACCO Brands Corporation operates in a market with moderate threat of substitutes. While there are some alternatives to its office products, the company's strong brand recognition and quality products mitigate the threat.

Bargaining Power Of Customers

ACCO Brands Corporation's customers have limited bargaining power due to the company's diversified product portfolio and strong distribution network.

Bargaining Power Of Suppliers

ACCO Brands Corporation's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is low in the office products industry due to high barriers to entry, including significant capital requirements and established distribution networks.

Intensity Of Rivalry

The office products industry is highly competitive, with several established players competing for market share. ACCO Brands Corporation faces intense rivalry from competitors such as 3M and Newell Brands.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.36%
Debt Cost 3.95%
Equity Weight 43.64%
Equity Cost 12.00%
WACC 7.46%
Leverage 129.12%

11. Quality Control: ACCO Brands Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ennis

A-Score: 6.7/10

Value: 7.2

Growth: 4.1

Quality: 7.2

Yield: 10.0

Momentum: 2.5

Volatility: 9.0

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REV Group

A-Score: 5.8/10

Value: 4.1

Growth: 6.2

Quality: 6.3

Yield: 4.0

Momentum: 10.0

Volatility: 4.0

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HNI

A-Score: 5.7/10

Value: 7.3

Growth: 4.6

Quality: 5.6

Yield: 6.0

Momentum: 3.0

Volatility: 7.7

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ACCO Brands

A-Score: 5.6/10

Value: 9.2

Growth: 1.8

Quality: 5.6

Yield: 9.0

Momentum: 2.5

Volatility: 5.3

1-Year Total Return ->

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Steelcase

A-Score: 5.5/10

Value: 6.9

Growth: 4.6

Quality: 4.5

Yield: 7.0

Momentum: 8.0

Volatility: 2.0

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Apogee Enterprises

A-Score: 4.7/10

Value: 6.3

Growth: 6.1

Quality: 4.7

Yield: 5.0

Momentum: 0.5

Volatility: 5.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.59$

Current Price

3.59$

Potential

-0.00%

Expected Cash-Flows