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ACCO Brands (ACCO) – Post Call Commentary: Looking for More Growth in 2022

Industrials
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Thursday, February 17, 2022

ACCO Brands (ACCO)
Post Call Commentary: Looking for More Growth in 2022

ACCO Brands Corporation designs, manufactures, sources, markets, and sells office products, academic supplies, and calendar products primarily in the United States, Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Transformation to Lead to More Growth. Over the past years, ACCO has pivoted the business to consumer and technology products, with these faster growing categories accounting for almost 60% of sales. In addition, ACCO has moved into faster growing channels, such as retail and e-tail. We note Walmart is now the largest customer accounting for nearly 10% of revenue, with Amazon not far behind. We believe this combination will lead to faster growth going forward.

    Impressive Comp Sales.  ACCO posted impressive comp sales during 2021, even with numerous headwinds. North America comp sales grew a reported 2%, but were up 7% excluding the large non-recurring tech order in 2020. EMEA comp sales grew 15%, and while International comp sales fell 3%, this reflects the near closure of two key markets during 2021 due to COVID …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

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