ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACN - IE00B4BNMY34 - Common Stock
270.43 USD
-5.37 (-1.95%)
271.01 USD
+0.58 (+0.21%)
We assign a fundamental rating of 6 out of 10 to ACN. ACN was compared to 88 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 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
- In the past year ACN was profitable.
- 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.
- ACN has a Return On Equity of 24.66%. This is amongst the best in the industry. ACN outperforms 86.36% of its industry peers.
- ACN has a better Return On Invested Capital (18.88%) than 93.18% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ACN is significantly below the industry average of 29.06%.
| 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
- The Profit Margin of ACN (10.76%) is better than 79.55% of its industry peers.
- In the last couple of years the Profit Margin of ACN has remained more or less at the same level.
- With an excellent Operating Margin value of 15.66%, ACN belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- In the last couple of years the Operating Margin of ACN has remained more or less at the same level.
- With a Gross Margin value of 31.97%, ACN perfoms like the industry average, outperforming 46.59% 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 | 15.66% | ||
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ACN is creating value.
- The number of shares outstanding for ACN has been reduced compared to 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 5.39 indicates that ACN is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.39, ACN is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
- ACN has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
- ACN's Debt to FCF ratio of 0.45 is amongst the best of the industry. ACN outperforms 85.23% of its industry peers.
- A Debt/Equity ratio of 0.16 indicates that ACN is not too dependend on debt financing.
- ACN's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. ACN outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.39 |
ROIC/WACC2.49
WACC7.58%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that ACN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.41, ACN is doing worse than 61.36% of the companies in the same industry.
- A Quick Ratio of 1.41 indicates that ACN should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.41, ACN is not doing good in the industry: 60.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- ACN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.14%, which is quite good.
- 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
- ACN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.21% yearly.
- The Revenue is expected to grow by 6.43% on average over the next years.
EPS Next Y8.24%
EPS Next 2Y7.94%
EPS Next 3Y8.12%
EPS Next 5Y8.21%
Revenue Next Year6.39%
Revenue Next 2Y5.91%
Revenue Next 3Y5.99%
Revenue Next 5Y6.43%
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
- ACN is valuated rather expensively with a Price/Earnings ratio of 20.36.
- Based on the Price/Earnings ratio, ACN is valued a bit cheaper than 64.77% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. ACN is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 17.95 indicates a rather expensive valuation of ACN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 63.64% 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 (25.83), we can say ACN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.36 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 76.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.57 | ||
| EV/EBITDA | 12.31 |
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)2.47
PEG (5Y)1.82
EPS Next 2Y7.94%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
- ACN has a Yearly Dividend Yield of 2.29%. Purely for dividend investing, there may be better candidates out there.
- ACN's Dividend Yield is rather good when compared to the industry average which is at 0.44. ACN pays more dividend than 93.18% of the companies in the same industry.
- ACN's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
- On average, the dividend of ACN grows each year by 13.12%, which is quite nice.
- 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.
- The dividend of ACN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.72%
EPS Next 2Y7.94%
EPS Next 3Y8.12%
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.
Can you provide the valuation status for ACCENTURE PLC-CL A?
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.
Can you provide the financial health for ACN stock?
The financial health rating of ACCENTURE PLC-CL A (ACN) is 7 / 10.
Is the dividend of ACCENTURE PLC-CL A sustainable?
The dividend rating of ACCENTURE PLC-CL A (ACN) is 6 / 10 and the dividend payout ratio is 49.72%.