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ACCO Brands (NYSE:ACCO) Corp, a leading manufacturer of office products, has seen its stock price touch a 52-week low, dipping to $3.75. According to InvestingPro analysis, the stock appears undervalued at current levels, with technical indicators suggesting oversold conditions. The company maintains a notable 7.73% dividend yield, offering potential value for income-focused investors. This latest price level reflects a significant downturn for the company, which has experienced a 1-year change with a decline of -28.9%. The drop to this year's low showcases the pressures faced by ACCO in a competitive market, where shifts in consumer demand and operational challenges have weighed heavily on the company's financial performance. Despite these challenges, ACCO maintains strong liquidity with a current ratio of 1.49, and management has been actively buying back shares. Investors are closely monitoring ACCO's strategies for recovery and stabilization in the face of these persistent headwinds. For deeper insights into ACCO's valuation and prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, ACCO Brands Corporation reported a 9.1% decrease in net sales for the fiscal year 2024, ending on December 31, 2024. The company also missed analyst expectations with fourth-quarter adjusted earnings per share of $0.39, falling short of the consensus estimate of $0.41. Revenue for the quarter was $448.1 million, below the expected $455.07 million and down 8.3% year-over-year. ACCO's guidance for 2025 disappointed investors, with a forecasted first-quarter adjusted loss per share between -$0.03 and -$0.05, compared to analysts' expectations of a $0.06 profit. For the full year 2025, ACCO projects adjusted EPS of $1.00 to $1.05, below the consensus of $1.13.
S&P Global Ratings downgraded ACCO's credit rating to 'B+' from 'BB-', citing sustained sales declines and challenging operating environments in its Americas and International segments. Despite these challenges, ACCO Brands expanded its multi-year cost reduction program, targeting approximately $100 million in annualized savings by the end of 2026. The company realized about $25 million in cost savings in 2024 and anticipates generating about $40 million of additional cost savings in 2025. ACCO also repurchased $15 million in shares and reduced its net debt by $94 million in 2024. Additionally, the company maintained its quarterly dividend of $0.075 per share, payable on March 26, 2025.
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