ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
NYSE:ACN - New York Stock Exchange, Inc. - IE00B4BNMY34 - Common Stock
ACN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. ACN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ACN is not valued too expensively and it also shows a decent growth rate. These ratings would make ACN suitable 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.
In the past 5 years ACN has always been profitable.
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 12.64%, ACN belongs to the top of the industry, outperforming 92.41% of the companies in the same industry.
ACN's Return On Equity of 25.93% is amongst the best of the industry. ACN outperforms 88.61% of its industry peers.
The Return On Invested Capital of ACN (18.44%) is better than 92.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACN is significantly above the industry average of 9.86%.
The 3 year average ROIC (22.55%) for ACN is well above the current ROIC(18.44%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 25.93% | ||
| ROIC | 18.44% |
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 has a better Profit Margin (11.41%) than 82.28% 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 (15.49%) is better than 87.34% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 32.45%, ACN perfoms like the industry average, outperforming 44.30% of the companies in the same industry.
ACN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.49% | ||
| PM (TTM) | 11.41% | ||
| GM | 32.45% |
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 well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ACN has less shares outstanding
The number of shares outstanding for ACN has been reduced compared to 5 years ago.
ACN has a worse debt/assets ratio than last year.
2.2 Solvency
ACN has an Altman-Z score of 7.11. This indicates that ACN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ACN (7.11) is better than 86.08% of its industry peers.
The Debt to FCF ratio of ACN is 0.57, which is an excellent value as it means it would take ACN, only 0.57 years of fcf income to pay off all of its debts.
ACN has a Debt to FCF ratio of 0.57. This is amongst the best in the industry. ACN outperforms 83.54% of its industry peers.
ACN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, ACN is in the better half of the industry, outperforming 65.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | 7.11 |
ROIC/WACC2.59
WACC7.13%
2.3 Liquidity
ACN has a Current Ratio of 1.47. 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 (1.47) which is in line with its industry peers.
ACN has a Quick Ratio of 1.47. This is a normal value and indicates that ACN is financially healthy and should not expect problems in meeting its short term obligations.
ACN's Quick ratio of 1.47 is in line compared to the rest of the industry. ACN outperforms 46.84% of its industry peers.
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 | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.54% 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.
ACN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.75%.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
EPS 1Y (TTM)3.54%
EPS 3Y10.15%
EPS 5Y10.2%
EPS Q2Q%9.79%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%9.03%
3.2 Future
The Earnings Per Share is expected to grow by 9.43% on average over the next years. This is quite good.
ACN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.07% yearly.
EPS Next Y7.16%
EPS Next 2Y8.45%
EPS Next 3Y9.14%
EPS Next 5Y9.43%
Revenue Next Year5.98%
Revenue Next 2Y6.36%
Revenue Next 3Y7.07%
Revenue Next 5Y7.07%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.02, which means the current valuation is very expensive for ACN.
ACN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. ACN is around the same levels.
A Price/Forward Earnings ratio of 25.34 indicates a quite expensive valuation of ACN.
ACN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ACN to the average of the S&P500 Index (24.44), we can say ACN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.02 | ||
| Fwd PE | 25.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 63.29% of the companies listed in the same industry.
ACN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACN is cheaper than 62.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.56 | ||
| EV/EBITDA | 19 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.06
PEG (5Y)2.85
EPS Next 2Y8.45%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, ACN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.88, ACN pays a better dividend. On top of this ACN pays more dividend than 89.87% of the companies listed in the same industry.
ACN's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
On average, the dividend of ACN grows each year by 12.11%, 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)12.11%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
44.34% of the earnings are spent on dividend by ACN. 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.
DP44.34%
EPS Next 2Y8.45%
EPS Next 3Y9.14%
ACCENTURE PLC-CL A
NYSE:ACN (1/21/2025, 7:39:01 PM)
After market: 356.42 0 (0%)356.42
+3.83 (+1.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners72.75%
Inst Owner Change0.07%
Ins Owners0.06%
Ins Owner Change1.34%
Market Cap240.54B
Analysts78.71
Price Target406.48 (14.05%)
Short Float %0.8%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend5.17
Dividend Growth(5Y)12.11%
DP44.34%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.87%
Min EPS beat(2)-0.68%
Max EPS beat(2)4.43%
EPS beat(4)2
Avg EPS beat(4)1.28%
Min EPS beat(4)-1.64%
Max EPS beat(4)4.43%
EPS beat(8)6
Avg EPS beat(8)2.46%
EPS beat(12)10
Avg EPS beat(12)2.73%
EPS beat(16)13
Avg EPS beat(16)3.08%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-0.86%
Max Revenue beat(2)1.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.54%
Revenue beat(12)4
Avg Revenue beat(12)-0.3%
Revenue beat(16)7
Avg Revenue beat(16)0.22%
PT rev (1m)4%
PT rev (3m)12.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.02 | ||
| Fwd PE | 25.34 | ||
| P/S | 3.62 | ||
| P/FCF | 26.56 | ||
| P/OCF | 24.91 | ||
| P/B | 8.24 | ||
| P/tB | 43.1 | ||
| EV/EBITDA | 19 |
EPS(TTM)12.28
EY3.45%
EPS(NY)14.07
Fwd EY3.95%
FCF(TTM)13.42
FCFY3.76%
OCF(TTM)14.31
OCFY4.01%
SpS98.33
BVpS43.25
TBVpS8.27
PEG (NY)4.06
PEG (5Y)2.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 25.93% | ||
| ROCE | 24.08% | ||
| ROIC | 18.44% | ||
| ROICexc | 22.9% | ||
| ROICexgc | 73.13% | ||
| OM | 15.49% | ||
| PM (TTM) | 11.41% | ||
| GM | 32.45% | ||
| FCFM | 13.65% |
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 5Y2.2%
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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.57 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 27.07% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.28% | ||
| Profit Quality | 119.62% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 7.11 |
F-Score5
WACC7.13%
ROIC/WACC2.59
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)3.54%
EPS 3Y10.15%
EPS 5Y10.2%
EPS Q2Q%9.79%
EPS Next Y7.16%
EPS Next 2Y8.45%
EPS Next 3Y9.14%
EPS Next 5Y9.43%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%9.03%
Revenue Next Year5.98%
Revenue Next 2Y6.36%
Revenue Next 3Y7.07%
Revenue Next 5Y7.07%
EBIT growth 1Y2.94%
EBIT growth 3Y9.6%
EBIT growth 5Y9.74%
EBIT Next Year30.71%
EBIT Next 3Y15.7%
EBIT Next 5Y12.14%
FCF growth 1Y2.08%
FCF growth 3Y0.86%
FCF growth 5Y7.4%
OCF growth 1Y1.57%
OCF growth 3Y0.58%
OCF growth 5Y6.62%