ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
NYSE:ACN - New York Stock Exchange, Inc. - IE00B4BNMY34 - Common Stock - Currency: USD
Taking everything into account, ACN scores 6 out of 10 in our fundamental rating. ACN was compared to 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACN was profitable.
In the past year ACN had a positive cash flow from operations.
ACN had positive earnings in each of the past 5 years.
In the past 5 years ACN always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.55%, ACN belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
ACN has a better Return On Equity (26.01%) than 89.02% 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 89.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACN is in line with the industry average of 21.60%.
The 3 year average ROIC (22.55%) for ACN is well above the current ROIC(18.26%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 11.61%, ACN belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
ACN's Profit Margin has been stable in the last couple of years.
ACN's Operating Margin of 15.53% is amongst the best of the industry. ACN outperforms 84.15% of its industry peers.
In the last couple of years the Operating Margin of ACN has remained more or less at the same level.
ACN has a Gross Margin (32.07%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ACN is creating value.
ACN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ACN has less shares outstanding
ACN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.57 indicates that ACN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.57, ACN is in the better half of the industry, outperforming 78.05% 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.
ACN has a Debt to FCF ratio of 0.50. This is amongst the best in the industry. ACN outperforms 86.59% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that ACN is not too dependend on debt financing.
ACN has a better Debt to Equity ratio (0.16) than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 5.57 |
ROIC/WACC2.43
WACC7.52%
2.3 Liquidity
ACN has a Current Ratio of 1.46. 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 1.46. This is in the lower half of the industry: ACN underperforms 60.98% of its industry peers.
A Quick Ratio of 1.46 indicates that ACN should not have too much problems paying its short term obligations.
ACN's Quick ratio of 1.46 is on the low side compared to the rest of the industry. ACN is outperformed by 60.98% 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 | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.82% over the past year.
ACN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.20% yearly.
Looking at the last year, ACN shows a small growth in Revenue. The Revenue has grown by 6.21% in the last year.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 7.30% on average over the next years.
The Revenue is expected to grow by 6.19% on average over the next years.
EPS Next Y8.75%
EPS Next 2Y7.91%
EPS Next 3Y8.12%
EPS Next 5Y7.3%
Revenue Next Year6.98%
Revenue Next 2Y6.24%
Revenue Next 3Y6.28%
Revenue Next 5Y6.19%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.75, the valuation of ACN can be described as rather expensive.
63.41% of the companies in the same industry are more expensive than ACN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. ACN is around the same levels.
With a Price/Forward Earnings ratio of 19.82, 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 62.20% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ACN to the average of the S&P500 Index (35.33), we can say ACN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 19.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than the industry average as 69.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ACN is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.79 | ||
| EV/EBITDA | 13.16 |
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 excellent profitability rating of ACN may justify a higher PE ratio.
PEG (NY)2.49
PEG (5Y)2.13
EPS Next 2Y7.91%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.45, ACN pays a better dividend. On top of this ACN pays more dividend than 90.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of ACN is nicely growing with an annual growth rate of 12.12%!
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)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 2Y7.91%
EPS Next 3Y8.12%
276.07
-3.92 (-1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners79.8%
Inst Owner Change-0.17%
Ins Owners0.07%
Ins Owner Change-2.49%
Market Cap171.95B
Analysts80.69
Price Target362.26 (31.22%)
Short Float %1.72%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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)-0.94%
PT rev (3m)-3.07%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)1.42%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)1.98%
Revenue NQ rev (3m)1.74%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 19.82 | ||
| P/S | 2.51 | ||
| P/FCF | 16.79 | ||
| P/OCF | 15.7 | ||
| P/B | 5.63 | ||
| P/tB | 27.91 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)12.69
EY4.6%
EPS(NY)13.93
Fwd EY5.04%
FCF(TTM)16.45
FCFY5.96%
OCF(TTM)17.58
OCFY6.37%
SpS109.95
BVpS49.06
TBVpS9.89
PEG (NY)2.49
PEG (5Y)2.13
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 | 5.57 |
F-Score5
WACC7.52%
ROIC/WACC2.43
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 Y8.75%
EPS Next 2Y7.91%
EPS Next 3Y8.12%
EPS Next 5Y7.3%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%7.66%
Revenue Next Year6.98%
Revenue Next 2Y6.24%
Revenue Next 3Y6.28%
Revenue Next 5Y6.19%
EBIT growth 1Y6.79%
EBIT growth 3Y9.6%
EBIT growth 5Y9.74%
EBIT Next Year29.28%
EBIT Next 3Y14.16%
EBIT Next 5Y9.9%
FCF growth 1Y9.21%
FCF growth 3Y0.86%
FCF growth 5Y7.4%
OCF growth 1Y10.55%
OCF growth 3Y0.58%
OCF growth 5Y6.62%