ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACN - IE00B4BNMY34 - Common Stock
269.53 USD
+3.03 (+1.14%)
269.53 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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ACN is not valued too expensively and it also shows a decent growth rate. This makes ACN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ACN was profitable.
ACN had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 11.74%, ACN belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
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 92.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACN is significantly below the industry average of 29.59%.
| 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
ACN has a better Profit Margin (11.02%) than 80.00% of its industry peers.
ACN's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 15.56%, ACN belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
ACN's Operating Margin has been stable in the last couple of years.
ACN has a Gross Margin (31.91%) 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 | 15.56% | ||
| 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.
The number of shares outstanding for ACN has been reduced compared to 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
ACN has an Altman-Z score of 5.18. This indicates that ACN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.18, ACN is doing good in the industry, outperforming 75.29% of the companies in the same industry.
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 82.35% 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.
Looking at the Debt to Equity ratio, with a value of 0.16, ACN is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 5.18 |
ROIC/WACC2.47
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.42 indicates that ACN should not have too much problems paying its short term obligations.
The Current ratio of ACN (1.42) is worse than 62.35% of its industry peers.
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 61.18% 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.
The Revenue has been growing slightly by 7.36% in the past year.
The Revenue has been growing by 9.47% on average over the past years. This is quite good.
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 Y7.56%
EPS Next 2Y7.74%
EPS Next 3Y7.92%
EPS Next 5Y8.14%
Revenue Next Year6.03%
Revenue Next 2Y5.71%
Revenue Next 3Y5.66%
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.
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
A Price/Earnings ratio of 20.85 indicates a rather expensive valuation of ACN.
65.88% of the companies in the same industry are more expensive than ACN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.28, ACN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.38, the valuation of ACN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ACN is valued a bit cheaper than the industry average as 62.35% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ACN to the average of the S&P500 Index (23.52), we can say ACN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than 71.76% of the companies in the same industry.
70.59% 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 | 15.37 | ||
| EV/EBITDA | 11.96 |
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)2.76
PEG (5Y)1.86
EPS Next 2Y7.74%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.42%.
ACN's Dividend Yield is rather good when compared to the industry average which is at 1.95. ACN pays more dividend than 92.94% of the companies in the same industry.
ACN's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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 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 2Y7.74%
EPS Next 3Y7.92%
269.53
+3.03 (+1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners82.02%
Inst Owner Change1.19%
Ins Owners0.07%
Ins Owner Change1.24%
Market Cap167.15B
Revenue(TTM)69.67B
Net Income(TTM)7.68B
Analysts76.25
Price Target283.15 (5.05%)
Short Float %2.3%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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)0%
PT rev (3m)-14.96%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 19.38 | ||
| P/S | 2.4 | ||
| P/FCF | 15.37 | ||
| P/OCF | 14.57 | ||
| P/B | 5.36 | ||
| P/tB | 26.75 | ||
| EV/EBITDA | 11.96 |
EPS(TTM)12.93
EY4.8%
EPS(NY)13.91
Fwd EY5.16%
FCF(TTM)17.54
FCFY6.51%
OCF(TTM)18.5
OCFY6.86%
SpS112.35
BVpS50.3
TBVpS10.08
PEG (NY)2.76
PEG (5Y)1.86
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 | 5.18 |
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 Y7.56%
EPS Next 2Y7.74%
EPS Next 3Y7.92%
EPS Next 5Y8.14%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%7.26%
Revenue Next Year6.03%
Revenue Next 2Y5.71%
Revenue Next 3Y5.66%
Revenue Next 5Y4.94%
EBIT growth 1Y8.04%
EBIT growth 3Y4.99%
EBIT growth 5Y10.73%
EBIT Next Year29.46%
EBIT Next 3Y13.15%
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 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.
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 7.56% 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%.