ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACN - IE00B4BNMY34 - Common Stock
280.67 USD
-1.15 (-0.41%)
280.67 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ACN. ACN was compared to 88 industry peers in the IT Services industry. ACN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ACN has a correct valuation and a medium growth rate. This makes ACN very considerable 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.
In the past 5 years ACN has always been profitable.
Each year in the past 5 years ACN had a positive operating cash flow.
1.2 Ratios
ACN has a better Return On Assets (11.76%) than 88.64% of its industry peers.
The Return On Equity of ACN (24.66%) is better than 86.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.88%, ACN belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
ACN had an Average Return On Invested Capital over the past 3 years of 20.60%. This is significantly below the industry average of 28.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.76% | ||
| ROE | 24.66% | ||
| ROIC | 18.88% |
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
The Profit Margin of ACN (10.76%) is better than 79.55% of its industry peers.
In the last couple of years the Profit Margin of ACN has remained more or less at the same level.
ACN has a better Operating Margin (15.66%) than 81.82% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
ACN has a Gross Margin (31.97%) which 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 | 15.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 31.97% |
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.
ACN has less shares outstanding than it did 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
ACN has an Altman-Z score of 5.45. This indicates that ACN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.45, ACN is doing good in the industry, outperforming 78.41% of the companies in the same industry.
ACN has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
ACN's Debt to FCF ratio of 0.45 is amongst the best of the industry. ACN outperforms 85.23% of its industry peers.
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 better Debt to Equity ratio (0.16) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.45 |
ROIC/WACC2.53
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ACN should not have too much problems paying its short term obligations.
ACN has a worse Current ratio (1.41) than 61.36% of its industry peers.
A Quick Ratio of 1.41 indicates that ACN should not have too much problems paying its short term obligations.
ACN has a worse Quick ratio (1.41) than 60.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.14% over the past year.
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.
ACN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.58%.
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)8.14%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%9.75%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%5.95%
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.
ACN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.94% yearly.
EPS Next Y7.98%
EPS Next 2Y7.77%
EPS Next 3Y7.93%
EPS Next 5Y8.14%
Revenue Next Year6.21%
Revenue Next 2Y5.8%
Revenue Next 3Y5.88%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.13, ACN is valued on the expensive side.
ACN's Price/Earnings ratio is a bit cheaper when compared to the industry. ACN is cheaper than 64.77% of the companies in the same industry.
ACN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 18.69, which indicates a rather expensive current valuation of ACN.
ACN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ACN is cheaper than 65.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, ACN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
ACN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACN is cheaper than 73.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACN is valued a bit cheaper than 76.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 12.59 |
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)2.65
PEG (5Y)1.88
EPS Next 2Y7.77%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.31%.
ACN's Dividend Yield is rather good when compared to the industry average which is at 0.43. ACN pays more dividend than 93.18% of the companies in the same industry.
ACN's Dividend Yield is a higher than the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 49.72% 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.
DP49.72%
EPS Next 2Y7.77%
EPS Next 3Y7.93%
280.67
-1.15 (-0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners82.73%
Inst Owner Change0%
Ins Owners0.06%
Ins Owner Change2.08%
Market Cap174.05B
Revenue(TTM)70.73B
Net Income(TTM)7.61B
Analysts76.25
Price Target294.03 (4.76%)
Short Float %1.89%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend5.93
Dividend Growth(5Y)13.12%
DP49.72%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.79%
Min EPS beat(2)1.25%
Max EPS beat(2)4.33%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-0.84%
Max EPS beat(4)4.33%
EPS beat(8)5
Avg EPS beat(8)1.76%
EPS beat(12)9
Avg EPS beat(12)2.39%
EPS beat(16)13
Avg EPS beat(16)2.61%
Revenue beat(2)2
Avg Revenue beat(2)0.3%
Min Revenue beat(2)0.23%
Max Revenue beat(2)0.37%
Revenue beat(4)3
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-0.74%
Max Revenue beat(4)1.45%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)7
Avg Revenue beat(16)-0.12%
PT rev (1m)3.84%
PT rev (3m)0.56%
EPS NQ rev (1m)-4.4%
EPS NQ rev (3m)-3.2%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 18.69 | ||
| P/S | 2.46 | ||
| P/FCF | 15.12 | ||
| P/OCF | 14.37 | ||
| P/B | 5.64 | ||
| P/tB | 29.43 | ||
| EV/EBITDA | 12.59 |
EPS(TTM)13.28
EY4.73%
EPS(NY)15.02
Fwd EY5.35%
FCF(TTM)18.56
FCFY6.61%
OCF(TTM)19.54
OCFY6.96%
SpS114.05
BVpS49.78
TBVpS9.54
PEG (NY)2.65
PEG (5Y)1.88
Graham Number121.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.76% | ||
| ROE | 24.66% | ||
| ROCE | 24.72% | ||
| ROIC | 18.88% | ||
| ROICexc | 24.06% | ||
| ROICexgc | 82.97% | ||
| OM | 15.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 31.97% | ||
| FCFM | 16.28% |
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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 24.63% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.56% | ||
| Profit Quality | 151.25% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 5.45 |
F-Score5
WACC7.47%
ROIC/WACC2.53
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)8.14%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%9.75%
EPS Next Y7.98%
EPS Next 2Y7.77%
EPS Next 3Y7.93%
EPS Next 5Y8.14%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%5.95%
Revenue Next Year6.21%
Revenue Next 2Y5.8%
Revenue Next 3Y5.88%
Revenue Next 5Y4.94%
EBIT growth 1Y7.74%
EBIT growth 3Y4.99%
EBIT growth 5Y10.73%
EBIT Next Year28.83%
EBIT Next 3Y13.99%
EBIT Next 5Y9.01%
FCF growth 1Y27.49%
FCF growth 3Y7.22%
FCF growth 5Y7.38%
OCF growth 1Y27.17%
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.
Can you provide the valuation status for ACCENTURE PLC-CL A?
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.
Can you provide the financial health for ACN stock?
The financial health rating of ACCENTURE PLC-CL A (ACN) is 7 / 10.
Is the dividend of ACCENTURE PLC-CL A sustainable?
The dividend rating of ACCENTURE PLC-CL A (ACN) is 6 / 10 and the dividend payout ratio is 49.72%.