ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - NYSE:ACN - IE00B4BNMY34 - Common Stock
238.39 USD
+4.37 (+1.87%)
238.39 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ACN. ACN was compared to 86 industry peers in the IT Services industry. While ACN has a great profitability rating, there are some minor concerns on its financial health. ACN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ACN had positive earnings in the past year.
ACN had a positive operating cash flow in the past year.
In the past 5 years ACN has always been profitable.
ACN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ACN (11.74%) is better than 90.70% of its industry peers.
ACN has a better Return On Equity (24.61%) than 89.53% of its industry peers.
With an excellent Return On Invested Capital value of 18.38%, ACN belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACN is in line with the industry average of 21.42%.
| 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
Looking at the Profit Margin, with a value of 11.02%, ACN belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
ACN's Profit Margin has been stable in the last couple of years.
ACN has a better Operating Margin (15.56%) than 83.72% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
The Gross Margin of ACN (31.91%) is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ACN is creating value.
Compared to 1 year ago, ACN has less shares outstanding
ACN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ACN is higher compared to a year ago.
2.2 Solvency
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.
The Debt to FCF ratio of ACN (0.47) is better than 86.05% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that ACN is not too dependend on debt financing.
ACN has a Debt to Equity ratio of 0.16. This is in the better half of the industry: ACN outperforms 63.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | N/A |
ROIC/WACC2.45
WACC7.51%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ACN should not have too much problems paying its short term obligations.
The Current ratio of ACN (1.42) is worse than 61.63% 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 61.63% 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.
Measured over the past years, ACN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.21% on average per year.
The Revenue has been growing slightly by 7.36% in the past 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
ACN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.14% yearly.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y7.64%
EPS Next 2Y7.96%
EPS Next 3Y8.61%
EPS Next 5Y8.14%
Revenue Next Year6.08%
Revenue Next 2Y5.79%
Revenue Next 3Y5.99%
Revenue Next 5Y4.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 18.44 indicates a rather expensive valuation of ACN.
67.44% of the companies in the same industry are more expensive than ACN, based on the Price/Earnings ratio.
ACN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.13, ACN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ACN is valued a bit cheaper than 66.28% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ACN to the average of the S&P500 Index (22.94), we can say ACN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 17.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 69.77% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACN is valued cheaper than 80.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.59 | ||
| EV/EBITDA | 10.65 |
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.
The decent profitability rating of ACN may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)1.64
EPS Next 2Y7.96%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.79%.
Compared to an average industry Dividend Yield of 2.52, ACN pays a better dividend. On top of this ACN pays more dividend than 94.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
On average, the dividend of ACN grows each year by 13.10%, which is quite nice.
ACN has been paying a dividend for at least 10 years, so it has 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)13.1%
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 2Y7.96%
EPS Next 3Y8.61%
238.39
+4.37 (+1.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-0.07%
Ins Owners0.07%
Ins Owner Change-0.17%
Market Cap147.84B
Analysts77.33
Price Target292.4 (22.66%)
Short Float %2.35%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend5.93
Dividend Growth(5Y)13.1%
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)-9.04%
PT rev (3m)-16.52%
EPS NQ rev (1m)1.44%
EPS NQ rev (3m)1.62%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.44 | ||
| Fwd PE | 17.13 | ||
| P/S | 2.12 | ||
| P/FCF | 13.59 | ||
| P/OCF | 12.88 | ||
| P/B | 4.74 | ||
| P/tB | 17.07 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)12.93
EY5.42%
EPS(NY)13.92
Fwd EY5.84%
FCF(TTM)17.54
FCFY7.36%
OCF(TTM)18.5
OCFY7.76%
SpS112.35
BVpS50.3
TBVpS13.96
PEG (NY)2.41
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 24.61% | ||
| ROCE | 24.07% | ||
| ROIC | 18.38% | ||
| ROICexc | 24.67% | ||
| ROICexgc | 75.12% | ||
| 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)95.72%
ROICexgc(5y)96.56%
ROCE(3y)26.98%
ROCE(5y)28.03%
ROICexcg growth 3Y-10.7%
ROICexcg growth 5Y1.59%
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 | 250 | ||
| Cash Conversion | 86.39% | ||
| Profit Quality | 141.62% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | N/A |
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 Y7.64%
EPS Next 2Y7.96%
EPS Next 3Y8.61%
EPS Next 5Y8.14%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%7.26%
Revenue Next Year6.08%
Revenue Next 2Y5.79%
Revenue Next 3Y5.99%
Revenue Next 5Y4.94%
EBIT growth 1Y8.04%
EBIT growth 3Y4.99%
EBIT growth 5Y10.73%
EBIT Next Year27.65%
EBIT Next 3Y13.5%
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%