ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
NYSE:ACN - New York Stock Exchange, Inc. - IE00B4BNMY34 - Common Stock - Currency: USD
Taking everything into account, ACN scores 7 out of 10 in our fundamental rating. ACN was compared to 82 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 correct valuation and a medium growth rate. These ratings could make ACN a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
ACN had positive earnings in the past year.
In the past year ACN had a positive cash flow from operations.
ACN had positive earnings in each of the past 5 years.
Each year in the past 5 years ACN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.64%, ACN belongs to the best of the industry, outperforming 91.03% of the companies in the same industry.
With an excellent Return On Equity value of 25.93%, ACN belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
ACN has a Return On Invested Capital of 18.44%. This is amongst the best in the industry. ACN outperforms 91.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACN is significantly above the industry average of 10.13%.
The 3 year average ROIC (22.55%) for ACN is well above the current ROIC(18.44%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 25.93% | ||
| ROIC | 18.44% |
ROA(3y)13.65%
ROA(5y)13.68%
ROE(3y)27.85%
ROE(5y)28.77%
ROIC(3y)22.55%
ROIC(5y)21.86%
1.3 Margins
Looking at the Profit Margin, with a value of 11.41%, ACN belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
ACN's Profit Margin has been stable in the last couple of years.
ACN's Operating Margin of 15.49% is amongst the best of the industry. ACN outperforms 85.90% of its industry peers.
In the last couple of years the Operating Margin of ACN has remained more or less at the same level.
ACN has a Gross Margin of 32.45%. This is comparable to the rest of the industry: ACN outperforms 44.87% of its industry peers.
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 | 15.49% | ||
| PM (TTM) | 11.41% | ||
| GM | 32.45% |
OM growth 3Y0.83%
OM growth 5Y1.17%
PM growth 3Y-1.43%
PM growth 5Y0.24%
GM growth 3Y0.23%
GM growth 5Y1.14%
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.
The number of shares outstanding for ACN has been reduced compared to 5 years ago.
Compared to 1 year ago, ACN has a worse debt to assets ratio.
2.2 Solvency
ACN has an Altman-Z score of 7.11. This indicates that ACN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ACN (7.11) is better than 82.05% of its industry peers.
ACN has a debt to FCF ratio of 0.57. This is a very positive value and a sign of high solvency as it would only need 0.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.57, ACN belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
ACN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
ACN has a Debt to Equity ratio of 0.17. This is in the better half of the industry: ACN outperforms 67.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 7.11 |
ROIC/WACC2.59
WACC7.12%
2.3 Liquidity
A Current Ratio of 1.47 indicates that ACN should not have too much problems paying its short term obligations.
ACN has a Current ratio (1.47) which is in line with its industry peers.
A Quick Ratio of 1.47 indicates that ACN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.47, ACN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The current and quick ratio evaluation for ACN is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.54% over the past year.
ACN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.20% yearly.
The Revenue has been growing slightly by 2.75% in the past year.
ACN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
EPS 1Y (TTM)3.54%
EPS 3Y10.15%
EPS 5Y10.2%
EPS Q2Q%9.79%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%9.03%
3.2 Future
ACN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.43% yearly.
The Revenue is expected to grow by 7.07% on average over the next years.
EPS Next Y8.19%
EPS Next 2Y8.64%
EPS Next 3Y9.29%
EPS Next 5Y9.43%
Revenue Next Year6.04%
Revenue Next 2Y6.45%
Revenue Next 3Y7.14%
Revenue Next 5Y7.07%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.66, which means the current valuation is very expensive for ACN.
ACN's Price/Earnings is on the same level as the industry average.
ACN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 25.81, ACN can be considered very expensive at the moment.
ACN's Price/Forward Earnings is on the same level as the industry average.
ACN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.66 | ||
| Fwd PE | 25.81 |
4.2 Price Multiples
ACN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACN is cheaper than 65.38% of the companies in the same industry.
62.82% of the companies in the same industry are more expensive than ACN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.16 | ||
| EV/EBITDA | 19.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ACN does not grow enough to justify the current Price/Earnings ratio.
ACN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.62
PEG (5Y)2.91
EPS Next 2Y8.64%
EPS Next 3Y9.29%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
ACN's Dividend Yield is rather good when compared to the industry average which is at 2.96. ACN pays more dividend than 85.90% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.29, ACN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
The dividend of ACN is nicely growing with an annual growth rate of 12.11%!
ACN has paid a dividend for at least 10 years, which is a reliable track record.
ACN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)12.11%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ACN pays out 44.34% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ACN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.34%
EPS Next 2Y8.64%
EPS Next 3Y9.29%
364.26
-20.58 (-5.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners72.75%
Inst Owner Change1.32%
Ins Owners0.06%
Ins Owner Change0.26%
Market Cap227.84B
Analysts79.33
Price Target404.25 (10.98%)
Short Float %0.87%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend5.17
Dividend Growth(5Y)12.11%
DP44.34%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.99%
Min EPS beat(2)-0.68%
Max EPS beat(2)4.66%
EPS beat(4)2
Avg EPS beat(4)1.34%
Min EPS beat(4)-1.64%
Max EPS beat(4)4.66%
EPS beat(8)6
Avg EPS beat(8)2.49%
EPS beat(12)10
Avg EPS beat(12)2.75%
EPS beat(16)13
Avg EPS beat(16)3.1%
Revenue beat(2)1
Avg Revenue beat(2)0.72%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)2.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)2.29%
Revenue beat(8)2
Avg Revenue beat(8)-0.51%
Revenue beat(12)4
Avg Revenue beat(12)-0.27%
Revenue beat(16)7
Avg Revenue beat(16)0.24%
PT rev (1m)-0.55%
PT rev (3m)3.43%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0.97%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.66 | ||
| Fwd PE | 25.81 | ||
| P/S | 3.43 | ||
| P/FCF | 25.16 | ||
| P/OCF | 23.6 | ||
| P/B | 7.81 | ||
| P/tB | 40.82 | ||
| EV/EBITDA | 19.01 |
EPS(TTM)12.28
EY3.37%
EPS(NY)14.12
Fwd EY3.88%
FCF(TTM)14.48
FCFY3.97%
OCF(TTM)15.44
OCFY4.24%
SpS106.1
BVpS46.67
TBVpS8.92
PEG (NY)3.62
PEG (5Y)2.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 25.93% | ||
| ROCE | 24.08% | ||
| ROIC | 18.44% | ||
| ROICexc | 22.9% | ||
| ROICexgc | 73.13% | ||
| OM | 15.49% | ||
| PM (TTM) | 11.41% | ||
| GM | 32.45% | ||
| FCFM | 13.65% |
ROA(3y)13.65%
ROA(5y)13.68%
ROE(3y)27.85%
ROE(5y)28.77%
ROIC(3y)22.55%
ROIC(5y)21.86%
ROICexc(3y)29.38%
ROICexc(5y)29.94%
ROICexgc(3y)106.1%
ROICexgc(5y)95.64%
ROCE(3y)29.45%
ROCE(5y)28.56%
ROICexcg growth 3Y2.38%
ROICexcg growth 5Y2.2%
ROICexc growth 3Y-7.36%
ROICexc growth 5Y-8.9%
OM growth 3Y0.83%
OM growth 5Y1.17%
PM growth 3Y-1.43%
PM growth 5Y0.24%
GM growth 3Y0.23%
GM growth 5Y1.14%
F-Score5
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.57 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 27.07% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.28% | ||
| Profit Quality | 119.62% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 7.11 |
F-Score5
WACC7.12%
ROIC/WACC2.59
Cap/Depr(3y)27.12%
Cap/Depr(5y)29.17%
Cap/Sales(3y)0.93%
Cap/Sales(5y)1.06%
Profit Quality(3y)125.93%
Profit Quality(5y)133.8%
High Growth Momentum
Growth
EPS 1Y (TTM)3.54%
EPS 3Y10.15%
EPS 5Y10.2%
EPS Q2Q%9.79%
EPS Next Y8.19%
EPS Next 2Y8.64%
EPS Next 3Y9.29%
EPS Next 5Y9.43%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%9.03%
Revenue Next Year6.04%
Revenue Next 2Y6.45%
Revenue Next 3Y7.14%
Revenue Next 5Y7.07%
EBIT growth 1Y2.94%
EBIT growth 3Y9.6%
EBIT growth 5Y9.74%
EBIT Next Year30.71%
EBIT Next 3Y15.7%
EBIT Next 5Y12.14%
FCF growth 1Y2.08%
FCF growth 3Y0.86%
FCF growth 5Y7.4%
OCF growth 1Y1.57%
OCF growth 3Y0.58%
OCF growth 5Y6.62%