ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACN - IE00B4BNMY34 - Common Stock
270 USD
-1.34 (-0.49%)
270.3 USD
+0.3 (+0.11%)
Overall ACN gets a fundamental rating of 6 out of 10. We evaluated ACN against 88 industry peers in the IT Services industry. ACN gets an excellent profitability rating and is at the same time showing great financial health properties. ACN has a decent growth rate and is not valued too expensively. 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.
ACN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.76%, ACN belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
With an excellent Return On Equity value of 24.66%, ACN belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
ACN has a better Return On Invested Capital (18.88%) than 93.18% of its industry peers.
ACN had an Average Return On Invested Capital over the past 3 years of 20.60%. This is significantly below the industry average of 29.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.76% | ||
| ROE | 24.66% | ||
| ROIC | 18.88% |
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
With a decent Profit Margin value of 10.76%, ACN is doing good in the industry, outperforming 79.55% of the companies in the same industry.
ACN's Profit Margin has been stable in the last couple of years.
ACN has a better Operating Margin (15.66%) than 81.82% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
ACN has a Gross Margin of 31.97%. This is comparable to the rest of the industry: ACN outperforms 46.59% of its industry peers.
ACN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 31.97% |
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
ACN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ACN has less shares outstanding than it did 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
An Altman-Z score of 5.32 indicates that ACN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.32, ACN is in the better half of the industry, outperforming 76.14% of the companies in the same industry.
The Debt to FCF ratio of ACN is 0.45, which is an excellent value as it means it would take ACN, only 0.45 years of fcf income to pay off all of its debts.
ACN's Debt to FCF ratio of 0.45 is amongst the best of the industry. ACN outperforms 84.09% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that ACN is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.16, ACN is doing good in the industry, outperforming 61.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.32 |
ROIC/WACC2.53
WACC7.47%
2.3 Liquidity
ACN has a Current Ratio of 1.41. 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 Current ratio of 1.41 is on the low side compared to the rest of the industry. ACN is outperformed by 60.23% of its industry peers.
ACN has a Quick Ratio of 1.41. This is a normal value and indicates that ACN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.41, ACN perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.14% 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 11.21% on average per year.
The Revenue has been growing slightly by 6.58% 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)8.14%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%9.75%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%5.95%
3.2 Future
The Earnings Per Share is expected to grow by 8.14% 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 4.94% yearly.
EPS Next Y7.98%
EPS Next 2Y7.77%
EPS Next 3Y7.93%
EPS Next 5Y8.14%
Revenue Next Year6.21%
Revenue Next 2Y5.8%
Revenue Next 3Y5.88%
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
ACN is valuated rather expensively with a Price/Earnings ratio of 20.33.
67.05% 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 26.77, ACN is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.98, which indicates a rather expensive current valuation of ACN.
Based on the Price/Forward Earnings ratio, ACN is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, ACN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 17.98 |
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 73.86% of the companies listed in the same industry.
75.00% 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 | 14.55 | ||
| EV/EBITDA | 12.04 |
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)2.55
PEG (5Y)1.81
EPS Next 2Y7.77%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, ACN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.43, ACN pays a better dividend. On top of this ACN pays more dividend than 94.32% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, ACN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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.
ACN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.12%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ACN pays out 49.72% 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.
DP49.72%
EPS Next 2Y7.77%
EPS Next 3Y7.93%
270
-1.34 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners82.02%
Inst Owner Change1.2%
Ins Owners0.07%
Ins Owner Change1.96%
Market Cap167.44B
Revenue(TTM)70.73B
Net Income(TTM)7.61B
Analysts76.25
Price Target294.03 (8.9%)
Short Float %1.89%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend5.93
Dividend Growth(5Y)13.12%
DP49.72%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.79%
Min EPS beat(2)1.25%
Max EPS beat(2)4.33%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-0.84%
Max EPS beat(4)4.33%
EPS beat(8)5
Avg EPS beat(8)1.76%
EPS beat(12)9
Avg EPS beat(12)2.39%
EPS beat(16)13
Avg EPS beat(16)2.61%
Revenue beat(2)2
Avg Revenue beat(2)0.3%
Min Revenue beat(2)0.23%
Max Revenue beat(2)0.37%
Revenue beat(4)3
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-0.74%
Max Revenue beat(4)1.45%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)7
Avg Revenue beat(16)-0.12%
PT rev (1m)3.84%
PT rev (3m)-8.53%
EPS NQ rev (1m)-4.38%
EPS NQ rev (3m)-4.56%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 17.98 | ||
| P/S | 2.37 | ||
| P/FCF | 14.55 | ||
| P/OCF | 13.82 | ||
| P/B | 5.42 | ||
| P/tB | 28.31 | ||
| EV/EBITDA | 12.04 |
EPS(TTM)13.28
EY4.92%
EPS(NY)15.02
Fwd EY5.56%
FCF(TTM)18.56
FCFY6.88%
OCF(TTM)19.54
OCFY7.24%
SpS114.05
BVpS49.78
TBVpS9.54
PEG (NY)2.55
PEG (5Y)1.81
Graham Number121.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.76% | ||
| ROE | 24.66% | ||
| ROCE | 24.72% | ||
| ROIC | 18.88% | ||
| ROICexc | 24.06% | ||
| ROICexgc | 82.97% | ||
| OM | 15.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 31.97% | ||
| FCFM | 16.28% |
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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 24.63% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.56% | ||
| Profit Quality | 151.25% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 5.32 |
F-Score5
WACC7.47%
ROIC/WACC2.53
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)8.14%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%9.75%
EPS Next Y7.98%
EPS Next 2Y7.77%
EPS Next 3Y7.93%
EPS Next 5Y8.14%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%5.95%
Revenue Next Year6.21%
Revenue Next 2Y5.8%
Revenue Next 3Y5.88%
Revenue Next 5Y4.94%
EBIT growth 1Y7.74%
EBIT growth 3Y4.99%
EBIT growth 5Y10.73%
EBIT Next Year28.83%
EBIT Next 3Y13.99%
EBIT Next 5Y9.01%
FCF growth 1Y27.49%
FCF growth 3Y7.22%
FCF growth 5Y7.38%
OCF growth 1Y27.17%
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 7.98% 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 49.72%.