The purpose of our “In Focus” reports is to focus in on one company out of the 2,000 we cover, and to do a much more in-depth analysis of that one company. In this way, we can determine if that company deserves to be classified as one of the best stocks to buy now. In this report, we focus on ACCO Brands Corporation.
ACCO Brands Corporation (ACCO) supplies branded office products to the office products resale industry. Specifically, it designs, develops, manufactures, and markets a variety of traditional and computer-related office products. ACCO operates in three segments: ACCO Brands America, ACCO Brands International, and Computer Products Group.
ACCO is headquartered in Lincolnshire, Illinois. It sells its products mainly in markets located in North America, Europe, and Australia.
Occasionally a firm will exhibit weak growth, but (in a sense) make up for that weak growth by also exhibiting solid and steady growth. ACCO is not one of those firms. Its growth has been both weak and erratic.
Its paper profits, cash flows, and even free cash flows have been mostly positive. This is good, but it is debatable how real these are and whether they will continue since ACCO does not have the confidence to pay a dividend. Furthermore, its financial strength is average at best. ACCO is clearly an inferior firm.
Its future growth does not look much brighter since its two biggest customers, Staples and Office Depot, will likely merge into one. This will only give its customers even more market power. It will also likely dent its sales, and reduce its margins.
The one redeeming quality ACCO has is that it is fairly cheap. Its P/E is about 11, and its other price multiples are equally low. However, this redeeming quality only makes its overall fundamentals average. We do not consider ACCO one of the best stocks to buy now.
Stat Sheet – ACCO Brands Corporation 5/2/16
|Market Cap||$ 1,064|
|Price Volatility||Above Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)
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Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.