NEW YORK (
-- ACCO Brands
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- ABD's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 6.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.16 is sturdy.
- Net operating cash flow has significantly increased by 137.63% to $7.00 million when compared to the same quarter last year. In addition, ACCO BRANDS CORP has also vastly surpassed the industry average cash flow growth rate of 2.03%.
- The gross profit margin for ACCO BRANDS CORP is currently lower than what is desirable, coming in at 33.50%. Regardless of ABD's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.50% trails the industry average.
ACCO Brands Corporation designs, develops, manufactures, and markets traditional and computer-related office products and supplies principally in North America, Europe, and Australia. The company has a P/E ratio of 29.9, above the average consumer non-durables industry P/E ratio of 3.1 and above the S&P 500 P/E ratio of 17.7. ACCO has a market cap of $497.9 million and is part of the
industry. Shares are up 5.4% year to date as of the close of trading on Tuesday.
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