ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACN - IE00B4BNMY34 - Common Stock
250 USD
+2.15 (+0.87%)
250.5 USD
+0.5 (+0.2%)
Overall ACN gets a fundamental rating of 6 out of 10. We evaluated ACN against 86 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making ACN a very profitable company, without any liquidiy or solvency issues. ACN has a correct valuation and a medium growth rate. With these ratings, ACN could be worth investigating further 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.
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
ACN has a better Return On Assets (11.74%) than 89.41% of its industry peers.
The Return On Equity of ACN (24.61%) is better than 85.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.38%, ACN belongs to the top of the industry, outperforming 91.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACN is significantly below the industry average of 29.77%.
| 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
The Profit Margin of ACN (11.02%) is better than 81.18% 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 (15.56%) than 81.18% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 31.91%, ACN perfoms like the industry average, outperforming 45.88% of the companies in the same 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
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.
ACN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.00 indicates that ACN is not in any danger for bankruptcy at the moment.
ACN has a Altman-Z score of 5.00. This is in the better half of the industry: ACN outperforms 74.12% of its industry peers.
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.
ACN has a better Debt to FCF ratio (0.47) than 83.53% 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 Debt to Equity ratio of 0.16. This is in the better half of the industry: ACN outperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 5 |
ROIC/WACC2.47
WACC7.44%
2.3 Liquidity
ACN has a Current Ratio of 1.42. This is a normal value and indicates that ACN is financially healthy and should not expect problems in meeting its short term obligations.
ACN has a Current ratio of 1.42. This is in the lower half of the industry: ACN underperforms 61.18% of its industry peers.
A Quick Ratio of 1.42 indicates that ACN should not have too much problems paying its short term obligations.
The Quick ratio of ACN (1.42) is worse than 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.
ACN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.21% yearly.
Looking at the last year, ACN shows a small growth in Revenue. The Revenue has grown by 7.36% in the last 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
The Earnings Per Share is expected to grow by 8.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y7.57%
EPS Next 2Y7.73%
EPS Next 3Y8.46%
EPS Next 5Y8.14%
Revenue Next Year6.13%
Revenue Next 2Y5.75%
Revenue Next 3Y5.77%
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.
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
Based on the Price/Earnings ratio of 19.33, the valuation of ACN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 67.06% of the companies listed in the same industry.
ACN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
ACN is valuated rather expensively with a Price/Forward Earnings ratio of 17.97.
ACN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ACN is cheaper than 63.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, ACN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
ACN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACN is cheaper than 75.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACN is valued a bit cheaper than the industry average as 72.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 11.19 |
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)2.55
PEG (5Y)1.72
EPS Next 2Y7.73%
EPS Next 3Y8.46%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.63%. 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 2.03. ACN pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
The dividend of ACN is nicely growing with an annual growth rate of 13.12%!
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)13.12%
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 2Y7.73%
EPS Next 3Y8.46%
250
+2.15 (+0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change1.12%
Ins Owners0.07%
Ins Owner Change1.27%
Market Cap155.03B
Revenue(TTM)69.67B
Net Income(TTM)7.68B
Analysts76.25
Price Target283.15 (13.26%)
Short Float %2.25%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend5.93
Dividend Growth(5Y)13.12%
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)-14.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 17.97 | ||
| P/S | 2.23 | ||
| P/FCF | 14.26 | ||
| P/OCF | 13.51 | ||
| P/B | 4.97 | ||
| P/tB | 24.81 | ||
| EV/EBITDA | 11.19 |
EPS(TTM)12.93
EY5.17%
EPS(NY)13.91
Fwd EY5.56%
FCF(TTM)17.54
FCFY7.01%
OCF(TTM)18.5
OCFY7.4%
SpS112.35
BVpS50.3
TBVpS10.08
PEG (NY)2.55
PEG (5Y)1.72
Graham Number120.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 24.61% | ||
| ROCE | 24.07% | ||
| ROIC | 18.38% | ||
| ROICexc | 24.67% | ||
| ROICexgc | 96.16% | ||
| 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)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 Turnover1.07
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 | 69.75 | ||
| Cash Conversion | 86.39% | ||
| Profit Quality | 141.62% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 5 |
F-Score5
WACC7.44%
ROIC/WACC2.47
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 2Y7.73%
EPS Next 3Y8.46%
EPS Next 5Y8.14%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%7.26%
Revenue Next Year6.13%
Revenue Next 2Y5.75%
Revenue Next 3Y5.77%
Revenue Next 5Y4.94%
EBIT growth 1Y8.04%
EBIT growth 3Y4.99%
EBIT growth 5Y10.73%
EBIT Next Year27.65%
EBIT Next 3Y13.45%
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%.