ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - NYSE:ACN - IE00B4BNMY34 - Common Stock
245.76 USD
+4.42 (+1.83%)
245.76 USD
0 (0%)
Overall ACN gets a fundamental rating of 6 out of 10. We evaluated ACN against 85 industry peers in the IT Services industry. ACN has an excellent profitability rating, but there are some minor concerns on its financial health. ACN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACN was profitable.
In the past year ACN had a positive cash flow from operations.
Each year in the past 5 years ACN has been profitable.
Each year in the past 5 years ACN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ACN (11.74%) is better than 91.76% of its industry peers.
The Return On Equity of ACN (24.61%) is better than 87.06% of its industry peers.
ACN has a Return On Invested Capital of 18.38%. This is amongst the best in the industry. ACN outperforms 90.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACN is significantly below the industry average of 27.96%.
| 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
With an excellent Profit Margin value of 11.02%, ACN belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
ACN's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 15.56%, ACN belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
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 31.91%. This is comparable to the rest of the industry: ACN outperforms 44.71% of its industry peers.
ACN's Gross Margin has been stable in the last couple of years.
| 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
ACN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ACN has less shares outstanding
Compared to 5 years ago, ACN has less shares outstanding
Compared to 1 year ago, ACN has a worse debt to assets ratio.
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.
Looking at the Debt to FCF ratio, with a value of 0.47, ACN belongs to the top of the industry, outperforming 85.88% 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 better Debt to Equity ratio (0.16) than 62.35% 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.
Looking at the Current ratio, with a value of 1.42, ACN is doing worse than 61.18% of the companies in the same industry.
A Quick Ratio of 1.42 indicates that ACN should not have too much problems paying its short term obligations.
ACN has a Quick ratio of 1.42. This is in the lower half of the industry: ACN underperforms 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.11% 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 7.36%.
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 2Y7.65%
EPS Next 3Y7.77%
EPS Next 5Y8.14%
Revenue Next Year6.11%
Revenue Next 2Y5.75%
Revenue Next 3Y5.79%
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 19.01, ACN is valued on the expensive side.
Based on the Price/Earnings ratio, ACN is valued a bit cheaper than 68.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, ACN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.67, ACN is valued on the expensive side.
68.24% 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 32.68. ACN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 17.67 |
4.2 Price Multiples
71.76% of the companies in the same industry are more expensive than ACN, based on the Enterprise Value to EBITDA ratio.
82.35% 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 | 14.02 | ||
| EV/EBITDA | 10.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ACN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.51
PEG (5Y)1.7
EPS Next 2Y7.65%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.62%. 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 2.57. ACN pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
The dividend of ACN is nicely growing with an annual growth rate of 13.10%!
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)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.
The dividend of ACN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.19%
EPS Next 2Y7.65%
EPS Next 3Y7.77%
245.76
+4.42 (+1.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-0.83%
Ins Owners0.07%
Ins Owner Change1.41%
Market Cap152.41B
Revenue(TTM)69.67B
Net Income(TTM)7.68B
Analysts77.33
Price Target283.15 (15.21%)
Short Float %2.15%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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)-3.16%
PT rev (3m)-19.16%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)0.83%
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)0.03%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 17.67 | ||
| P/S | 2.19 | ||
| P/FCF | 14.02 | ||
| P/OCF | 13.28 | ||
| P/B | 4.89 | ||
| P/tB | 17.6 | ||
| EV/EBITDA | 10.79 |
EPS(TTM)12.93
EY5.26%
EPS(NY)13.91
Fwd EY5.66%
FCF(TTM)17.54
FCFY7.14%
OCF(TTM)18.5
OCFY7.53%
SpS112.35
BVpS50.3
TBVpS13.96
PEG (NY)2.51
PEG (5Y)1.7
Graham Number120.97
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%
ROICexgc growth 3Y-10.7%
ROICexgc 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 Y7.57%
EPS Next 2Y7.65%
EPS Next 3Y7.77%
EPS Next 5Y8.14%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%7.26%
Revenue Next Year6.11%
Revenue Next 2Y5.75%
Revenue Next 3Y5.79%
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%
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 5 / 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%.