ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - NYSE:ACN - IE00B4BNMY34 - Common Stock
237.3 USD
-1.24 (-0.52%)
ACN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows a decent 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.
ACN had positive earnings in each of the past 5 years.
Each year in the past 5 years ACN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.55%, ACN belongs to the top of the industry, outperforming 91.86% of the companies in the same industry.
ACN has a better Return On Equity (26.01%) than 89.53% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.26%, ACN belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
ACN had an Average Return On Invested Capital over the past 3 years of 22.55%. This is in line with the industry average of 21.79%.
The last Return On Invested Capital (18.26%) for ACN is well below the 3 year average (22.55%), which needs to be investigated, but indicates that ACN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.55% | ||
| ROE | 26.01% | ||
| ROIC | 18.26% |
ROA(3y)13.65%
ROA(5y)13.68%
ROE(3y)27.85%
ROE(5y)28.77%
ROIC(3y)22.55%
ROIC(5y)21.86%
1.3 Margins
ACN's Profit Margin of 11.61% is amongst the best of the industry. ACN outperforms 81.40% of its industry peers.
In the last couple of years the Profit Margin of ACN has remained more or less at the same level.
The Operating Margin of ACN (15.53%) is better than 83.72% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
ACN has a Gross Margin (32.07%) which is in line with its industry peers.
ACN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.53% | ||
| PM (TTM) | 11.61% | ||
| GM | 32.07% |
OM growth 3Y0.83%
OM growth 5Y1.17%
PM growth 3Y-1.43%
PM growth 5Y0.24%
GM growth 3Y0.23%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
ACN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ACN has less shares outstanding than it did 1 year ago.
ACN has less shares outstanding than it did 5 years ago.
ACN has a worse debt/assets ratio than last year.
2.2 Solvency
ACN has an Altman-Z score of 5.10. This indicates that ACN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.10, ACN is doing good in the industry, outperforming 76.74% of the companies in the same industry.
ACN has a debt to FCF ratio of 0.50. This is a very positive value and a sign of high solvency as it would only need 0.50 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.50, ACN belongs to the top of the industry, outperforming 88.37% 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 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 | 0.5 | ||
| Altman-Z | 5.1 |
ROIC/WACC1.27
WACC14.41%
2.3 Liquidity
A Current Ratio of 1.46 indicates that ACN should not have too much problems paying its short term obligations.
ACN has a Current ratio of 1.46. This is in the lower half of the industry: ACN underperforms 63.95% of its industry peers.
A Quick Ratio of 1.46 indicates that ACN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.46, ACN is not doing good in the industry: 63.95% of the companies in the same industry are doing better.
The current and quick ratio evaluation for ACN is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.82% 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 10.20% on average per year.
The Revenue has been growing slightly by 6.21% in the past year.
Measured over the past years, ACN shows a quite strong growth in Revenue. The Revenue has been growing by 8.47% on average per year.
EPS 1Y (TTM)6.82%
EPS 3Y10.15%
EPS 5Y10.2%
EPS Q2Q%11.5%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%7.66%
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 8.43% yearly.
Based on estimates for the next years, ACN will show a small growth in Revenue. The Revenue will grow by 5.58% on average per year.
EPS Next Y8.69%
EPS Next 2Y7.94%
EPS Next 3Y8.1%
EPS Next 5Y8.43%
Revenue Next Year7.01%
Revenue Next 2Y6.2%
Revenue Next 3Y6.2%
Revenue Next 5Y5.58%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 18.70, ACN is valued on the expensive side.
Based on the Price/Earnings ratio, ACN is valued a bit cheaper than the industry average as 67.44% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. ACN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.03, ACN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 67.44% of the companies listed in the same industry.
ACN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than the industry average as 70.93% of the companies are valued more expensively.
83.72% 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 | 14.43 | ||
| EV/EBITDA | 11.16 |
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 excellent profitability rating of ACN may justify a higher PE ratio.
PEG (NY)2.15
PEG (5Y)1.83
EPS Next 2Y7.94%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, ACN has a reasonable but not impressive dividend return.
The stock price of ACN dropped by -23.47% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
ACN's Dividend Yield is rather good when compared to the industry average which is at 2.36. ACN pays more dividend than 91.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
On average, the dividend of ACN grows each year by 12.12%, 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)12.12%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ACN pays out 45.12% 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.
DP45.12%
EPS Next 2Y7.94%
EPS Next 3Y8.1%
NYSE:ACN (9/15/2025, 3:07:05 PM)
237.3
-1.24 (-0.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners80.21%
Inst Owner Change-0.43%
Ins Owners0.07%
Ins Owner Change-0.59%
Market Cap147.80B
Analysts77.33
Price Target321.47 (35.47%)
Short Float %2.12%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend5.17
Dividend Growth(5Y)12.12%
DP45.12%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-0.84%
Max EPS beat(2)3.99%
EPS beat(4)2
Avg EPS beat(4)1.78%
Min EPS beat(4)-0.84%
Max EPS beat(4)4.66%
EPS beat(8)5
Avg EPS beat(8)1.56%
EPS beat(12)9
Avg EPS beat(12)2.33%
EPS beat(16)12
Avg EPS beat(16)2.52%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-0.74%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-0.86%
Max Revenue beat(4)2.29%
Revenue beat(8)2
Avg Revenue beat(8)-0.35%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)0.05%
PT rev (1m)-5.32%
PT rev (3m)-12.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.7 | ||
| Fwd PE | 17.03 | ||
| P/S | 2.16 | ||
| P/FCF | 14.43 | ||
| P/OCF | 13.5 | ||
| P/B | 4.84 | ||
| P/tB | 23.99 | ||
| EV/EBITDA | 11.16 |
EPS(TTM)12.69
EY5.35%
EPS(NY)13.93
Fwd EY5.87%
FCF(TTM)16.45
FCFY6.93%
OCF(TTM)17.58
OCFY7.41%
SpS109.95
BVpS49.06
TBVpS9.89
PEG (NY)2.15
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.55% | ||
| ROE | 26.01% | ||
| ROCE | 23.85% | ||
| ROIC | 18.26% | ||
| ROICexc | 23.29% | ||
| ROICexgc | 77.09% | ||
| OM | 15.53% | ||
| PM (TTM) | 11.61% | ||
| GM | 32.07% | ||
| FCFM | 14.96% |
ROA(3y)13.65%
ROA(5y)13.68%
ROE(3y)27.85%
ROE(5y)28.77%
ROIC(3y)22.55%
ROIC(5y)21.86%
ROICexc(3y)29.38%
ROICexc(5y)29.94%
ROICexgc(3y)106.1%
ROICexgc(5y)95.64%
ROCE(3y)29.45%
ROCE(5y)28.56%
ROICexcg growth 3Y2.38%
ROICexcg growth 5Y2.21%
ROICexc growth 3Y-7.36%
ROICexc growth 5Y-8.9%
OM growth 3Y0.83%
OM growth 5Y1.17%
PM growth 3Y-1.43%
PM growth 5Y0.24%
GM growth 3Y0.23%
GM growth 5Y1.14%
F-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.5 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 30.97% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.78% | ||
| Profit Quality | 128.87% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 5.1 |
F-Score5
WACC14.41%
ROIC/WACC1.27
Cap/Depr(3y)27.12%
Cap/Depr(5y)29.17%
Cap/Sales(3y)0.93%
Cap/Sales(5y)1.06%
Profit Quality(3y)125.93%
Profit Quality(5y)133.8%
High Growth Momentum
Growth
EPS 1Y (TTM)6.82%
EPS 3Y10.15%
EPS 5Y10.2%
EPS Q2Q%11.5%
EPS Next Y8.69%
EPS Next 2Y7.94%
EPS Next 3Y8.1%
EPS Next 5Y8.43%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%7.66%
Revenue Next Year7.01%
Revenue Next 2Y6.2%
Revenue Next 3Y6.2%
Revenue Next 5Y5.58%
EBIT growth 1Y6.79%
EBIT growth 3Y9.6%
EBIT growth 5Y9.74%
EBIT Next Year29.86%
EBIT Next 3Y14.23%
EBIT Next 5Y9.41%
FCF growth 1Y9.21%
FCF growth 3Y0.86%
FCF growth 5Y7.4%
OCF growth 1Y10.55%
OCF growth 3Y0.58%
OCF growth 5Y6.62%