ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - NYSE:ACN - IE00B4BNMY34 - Common Stock
234.02 USD
-5.69 (-2.37%)
234.9 USD
+0.88 (+0.38%)
Taking everything into account, ACN scores 6 out of 10 in our fundamental rating. ACN was compared to 86 industry peers in the IT Services industry. ACN has an excellent profitability rating, but there are some minor concerns on its financial health. ACN has a decent growth rate and is not valued too expensively.
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.
ACN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ACN's Return On Assets of 11.74% is amongst the best of the industry. ACN outperforms 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.
Measured over the past 3 years, the Average Return On Invested Capital 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.
In the last couple of years the Profit Margin of ACN has remained more or less at the same level.
With an excellent Operating Margin value of 15.56%, ACN belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
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.
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 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 86.05% 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's Debt to Equity ratio of 0.16 is fine compared to the rest 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.
Looking at the Current ratio, with a value of 1.42, ACN is doing worse than 61.63% 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 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
The Earnings Per Share has grown by an nice 8.11% over the past year.
The Earnings Per Share has been growing by 11.21% on average over the past years. This is quite good.
ACN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.36%.
Measured over the past years, ACN shows a quite strong growth in Revenue. The Revenue has been growing by 9.47% on average per year.
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
The Earnings Per Share is expected to grow by 8.14% on average over the next years. This is quite good.
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 Y7.64%
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.
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
A Price/Earnings ratio of 18.10 indicates a rather expensive valuation of ACN.
ACN's Price/Earnings ratio is a bit cheaper when compared to the industry. ACN is cheaper than 68.60% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.31, ACN is valued a bit cheaper.
ACN is valuated correctly with a Price/Forward Earnings ratio of 16.81.
ACN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ACN is cheaper than 68.60% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ACN to the average of the S&P500 Index (22.85), we can say ACN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.1 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
ACN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACN is cheaper than 70.93% of the companies in the same industry.
ACN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ACN is cheaper than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.4 | ||
| 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.
ACN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)1.61
EPS Next 2Y7.96%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.59%, ACN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.49, ACN pays a better dividend. On top of this ACN pays more dividend than 94.19% of the companies listed in the same industry.
ACN's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
On average, the dividend of ACN grows each year by 13.10%, which is quite nice.
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)13.1%
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%
234.02
-5.69 (-2.37%)
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 Cap145.76B
Analysts77.33
Price Target292.4 (24.95%)
Short Float %2.35%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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)-12.18%
PT rev (3m)-19.28%
EPS NQ rev (1m)1.17%
EPS NQ rev (3m)1.36%
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 | 18.1 | ||
| Fwd PE | 16.81 | ||
| P/S | 2.09 | ||
| P/FCF | 13.4 | ||
| P/OCF | 12.7 | ||
| P/B | 4.67 | ||
| P/tB | 16.83 | ||
| EV/EBITDA | 10.76 |
EPS(TTM)12.93
EY5.53%
EPS(NY)13.92
Fwd EY5.95%
FCF(TTM)17.46
FCFY7.46%
OCF(TTM)18.42
OCFY7.87%
SpS111.86
BVpS50.09
TBVpS13.9
PEG (NY)2.37
PEG (5Y)1.61
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%