Thursday, February 18, 2021
ACCO Brands Corporation (ACCO)
Post Call Commentary
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.
Refer to the full report for the price target, fundamental analysis, and rating.
More Consumer Facing. We continue to be impressed with ACCO’s transformation to a more consumer products oriented Company. While we believe ACCO will continue to service the commercial products business, the consumer brands strategy should result in higher top line growth over time. The move also has helped strengthen, improve, and diversify its business. Greater geographic, end market, and product diversification is resulting in a business that is more profitable, more resilient, and more immune to shocks that may occur in a particular geography or product line. We believe the Company is well positioned to benefit as worldwide economies improve from the COVID malaise.
As Seen in 2020 Operating Results. Kensington computer accessories revenues were up strong double digits, while sales of TruSens air purifiers jumped to approximately $20 million in 2020 from $2 million in 2019. In terms of channels, consumer oriented channels such as e-tail, up 17%, and tech specialist, up 31%, showed strength while commercial and B2B channels, were down 25%. Retail and mass …
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.