ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACN - IE00B4BNMY34 - Common Stock
251.85 USD
+11.06 (+4.59%)
252 USD
+0.15 (+0.06%)
ACN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. ACN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ACN has a decent growth rate and is not valued too expensively. This makes ACN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ACN was profitable.
ACN had a positive operating cash flow in the past year.
Each year in the past 5 years ACN has been profitable.
ACN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.74%, ACN belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.
The Return On Equity of ACN (24.61%) is better than 85.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.38%, ACN belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACN is significantly below the industry average of 29.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 24.61% | ||
| ROIC | 18.38% |
ROA(3y)12.71%
ROA(5y)13.27%
ROE(3y)25.68%
ROE(5y)27.68%
ROIC(3y)20.6%
ROIC(5y)21.41%
1.3 Margins
ACN has a Profit Margin of 11.02%. This is amongst the best in the industry. ACN outperforms 81.18% of its industry peers.
ACN's Profit Margin has been stable in the last couple of years.
ACN has a Operating Margin of 15.56%. This is amongst the best in the industry. ACN outperforms 81.18% of its industry peers.
In the last couple of years the Operating Margin of ACN has remained more or less at the same level.
With a Gross Margin value of 31.91%, ACN perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
In the last couple of years the Gross Margin of ACN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.56% | ||
| PM (TTM) | 11.02% | ||
| GM | 31.91% |
OM growth 3Y0.77%
OM growth 5Y1.15%
PM growth 3Y-0.43%
PM growth 5Y-0.89%
GM growth 3Y-0.08%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ACN is creating value.
The number of shares outstanding for ACN has been reduced compared to 1 year ago.
Compared to 5 years ago, ACN has less shares outstanding
The debt/assets ratio for ACN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.90 indicates that ACN is not in any danger for bankruptcy at the moment.
ACN has a better Altman-Z score (4.90) than 75.29% of its industry peers.
ACN has a debt to FCF ratio of 0.47. This is a very positive value and a sign of high solvency as it would only need 0.47 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.47, ACN belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.
ACN has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
ACN has a Debt to Equity ratio of 0.16. This is in the better half of the industry: ACN outperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 4.9 |
ROIC/WACC2.45
WACC7.51%
2.3 Liquidity
ACN has a Current Ratio of 1.42. This is a normal value and indicates that ACN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ACN (1.42) is worse than 61.18% of its industry peers.
A Quick Ratio of 1.42 indicates that ACN should not have too much problems paying its short term obligations.
ACN has a worse Quick ratio (1.42) than 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
ACN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
ACN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.21% yearly.
Looking at the last year, ACN shows a small growth in Revenue. The Revenue has grown by 7.36% in the last year.
ACN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.47% yearly.
EPS 1Y (TTM)8.11%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%8.6%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%7.26%
3.2 Future
Based on estimates for the next years, ACN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.14% on average per year.
Based on estimates for the next years, ACN will show a small growth in Revenue. The Revenue will grow by 4.94% on average per year.
EPS Next Y7.57%
EPS Next 2Y7.73%
EPS Next 3Y8.68%
EPS Next 5Y8.14%
Revenue Next Year6.13%
Revenue Next 2Y5.75%
Revenue Next 3Y5.83%
Revenue Next 5Y4.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ACN is valuated rather expensively with a Price/Earnings ratio of 19.48.
ACN's Price/Earnings ratio is a bit cheaper when compared to the industry. ACN is cheaper than 63.53% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, ACN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.11, ACN is valued on the expensive side.
63.53% of the companies in the same industry are more expensive than ACN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.46. ACN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 18.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than 75.29% of the companies in the same industry.
ACN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACN is cheaper than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.36 | ||
| EV/EBITDA | 10.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ACN may justify a higher PE ratio.
PEG (NY)2.57
PEG (5Y)1.74
EPS Next 2Y7.73%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.63%, ACN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.01, ACN pays a better dividend. On top of this ACN pays more dividend than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
The dividend of ACN is nicely growing with an annual growth rate of 13.12%!
ACN has paid a dividend for at least 10 years, which is a reliable track record.
As ACN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)13.12%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ACN pays out 48.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
ACN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.19%
EPS Next 2Y7.73%
EPS Next 3Y8.68%
251.85
+11.06 (+4.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change1.18%
Ins Owners0.07%
Ins Owner Change4.35%
Market Cap156.18B
Revenue(TTM)69.67B
Net Income(TTM)7.68B
Analysts76.25
Price Target283.15 (12.43%)
Short Float %2.25%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend5.93
Dividend Growth(5Y)13.12%
DP48.19%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.62%
Min EPS beat(2)1.25%
Max EPS beat(2)3.99%
EPS beat(4)3
Avg EPS beat(4)2.26%
Min EPS beat(4)-0.84%
Max EPS beat(4)4.66%
EPS beat(8)5
Avg EPS beat(8)1.59%
EPS beat(12)9
Avg EPS beat(12)2.42%
EPS beat(16)13
Avg EPS beat(16)2.64%
Revenue beat(2)2
Avg Revenue beat(2)0.91%
Min Revenue beat(2)0.37%
Max Revenue beat(2)1.45%
Revenue beat(4)3
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-0.74%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)5
Avg Revenue beat(12)-0.24%
Revenue beat(16)7
Avg Revenue beat(16)0.14%
PT rev (1m)-3.16%
PT rev (3m)-16.6%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.48 | ||
| Fwd PE | 18.11 | ||
| P/S | 2.24 | ||
| P/FCF | 14.36 | ||
| P/OCF | 13.61 | ||
| P/B | 5.01 | ||
| P/tB | 25 | ||
| EV/EBITDA | 10.76 |
EPS(TTM)12.93
EY5.13%
EPS(NY)13.91
Fwd EY5.52%
FCF(TTM)17.54
FCFY6.96%
OCF(TTM)18.5
OCFY7.35%
SpS112.35
BVpS50.3
TBVpS10.08
PEG (NY)2.57
PEG (5Y)1.74
Graham Number120.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 24.61% | ||
| ROCE | 24.07% | ||
| ROIC | 18.38% | ||
| ROICexc | 24.67% | ||
| ROICexgc | 96.16% | ||
| OM | 15.56% | ||
| PM (TTM) | 11.02% | ||
| GM | 31.91% | ||
| FCFM | 15.61% |
ROA(3y)12.71%
ROA(5y)13.27%
ROE(3y)25.68%
ROE(5y)27.68%
ROIC(3y)20.6%
ROIC(5y)21.41%
ROICexc(3y)26.61%
ROICexc(5y)28.55%
ROICexgc(3y)102.73%
ROICexgc(5y)100.76%
ROCE(3y)26.98%
ROCE(5y)28.03%
ROICexgc growth 3Y-3.04%
ROICexgc growth 5Y6.74%
ROICexc growth 3Y-9.01%
ROICexc growth 5Y-4.63%
OM growth 3Y0.77%
OM growth 5Y1.15%
PM growth 3Y-0.43%
PM growth 5Y-0.89%
GM growth 3Y-0.08%
GM growth 5Y0.24%
F-Score5
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.47 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 24.58% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 69.75 | ||
| Cash Conversion | 86.39% | ||
| Profit Quality | 141.62% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 4.9 |
F-Score5
WACC7.51%
ROIC/WACC2.45
Cap/Depr(3y)23.85%
Cap/Depr(5y)27.32%
Cap/Sales(3y)0.83%
Cap/Sales(5y)0.96%
Profit Quality(3y)130.37%
Profit Quality(5y)132.31%
High Growth Momentum
Growth
EPS 1Y (TTM)8.11%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%8.6%
EPS Next Y7.57%
EPS Next 2Y7.73%
EPS Next 3Y8.68%
EPS Next 5Y8.14%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%7.26%
Revenue Next Year6.13%
Revenue Next 2Y5.75%
Revenue Next 3Y5.83%
Revenue Next 5Y4.94%
EBIT growth 1Y8.04%
EBIT growth 3Y4.99%
EBIT growth 5Y10.73%
EBIT Next Year27.65%
EBIT Next 3Y13.45%
EBIT Next 5Y9.01%
FCF growth 1Y26.23%
FCF growth 3Y7.22%
FCF growth 5Y7.38%
OCF growth 1Y25.66%
OCF growth 3Y6.34%
OCF growth 5Y6.91%
ACCENTURE PLC-CL A / ACN FAQ
What is the ChartMill fundamental rating of ACCENTURE PLC-CL A (ACN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ACN.
What is the valuation status of ACCENTURE PLC-CL A (ACN) stock?
ChartMill assigns a valuation rating of 4 / 10 to ACCENTURE PLC-CL A (ACN). This can be considered as Fairly Valued.
How profitable is ACCENTURE PLC-CL A (ACN) stock?
ACCENTURE PLC-CL A (ACN) has a profitability rating of 7 / 10.
What is the expected EPS growth for ACCENTURE PLC-CL A (ACN) stock?
The Earnings per Share (EPS) of ACCENTURE PLC-CL A (ACN) is expected to grow by 7.57% in the next year.
How sustainable is the dividend of ACCENTURE PLC-CL A (ACN) stock?
The dividend rating of ACCENTURE PLC-CL A (ACN) is 6 / 10 and the dividend payout ratio is 48.19%.