Felix Boisse

ACCO Brands: Value Trap In A Tight Spot

Co-authored by: Bowen Qian and Felix Boisse

Search for Value

ACCO Brands (ACCO; "ACCO" or "the Company") appears cheap on all value screens. It has a P/E of 8.9x, P/B of 1.0x, and a market capitalization valued at $683.5 million. ACCO Brands is the world's largest manufacturer and marketer of branded office and school supplies, including staplers, notepads, and binders. Additionally, ACCO's product categories include certain computer and electronic accessories. Overall, this makes ACCO a relatively obscure company; consequently, it has limited analyst coverage, and does not have any notable institutional investors. 2012's "Reverse Morris Trust" merger with MeadWestvaco Corporation's (MWV) consumer and office products businesses, where MWV shareholders received 50.5% of ACCO shares outstanding, may have put...

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