ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACN - IE00B4BNMY34 - Common Stock
269.98 USD
-0.79 (-0.29%)
269.98 USD
0 (0%)
Taking everything into account, ACN scores 6 out of 10 in our fundamental rating. ACN was compared to 88 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 has a correct valuation and a medium growth rate. These ratings could make ACN a good candidate 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
ACN has a better Return On Assets (11.76%) than 88.64% of its industry peers.
The Return On Equity of ACN (24.66%) is better than 86.36% of its industry peers.
ACN's Return On Invested Capital of 18.88% is amongst the best of the industry. ACN outperforms 93.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACN 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
ACN has a better Profit Margin (10.76%) 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.
The Operating Margin of ACN (15.66%) is better 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.
In the last couple of years the Gross Margin of ACN has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ACN 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.
ACN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.32 indicates that ACN is not in any danger for bankruptcy at the moment.
The Altman-Z score of ACN (5.32) is better than 75.00% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.45, ACN belongs to the best of the industry, outperforming 84.09% of the companies in the same industry.
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 61.36% of its industry peers.
| 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 has a Current ratio of 1.41. This is in the lower half of the industry: ACN underperforms 60.23% of its industry peers.
A Quick Ratio of 1.41 indicates that ACN should not have too much problems paying its short term obligations.
ACN has a Quick ratio (1.41) which is comparable to the rest of the 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.
The Earnings Per Share has been growing by 11.21% on average over the past years. This is quite good.
Looking at the last year, ACN shows a small growth in Revenue. The Revenue has grown by 6.58% in the last 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
A Price/Earnings ratio of 20.33 indicates a rather expensive valuation of ACN.
ACN's Price/Earnings ratio is a bit cheaper when compared to the industry. ACN is cheaper than 67.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. ACN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.98, the valuation of ACN can be described as rather expensive.
ACN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ACN is cheaper than 68.18% of the companies in the same industry.
ACN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 17.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than 73.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACN is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.54 | ||
| 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.
The decent profitability rating of ACN 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 1.87, 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.
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
49.72% of the earnings are spent on dividend by ACN. 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 2Y7.77%
EPS Next 3Y7.93%
269.98
-0.79 (-0.29%)
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 Cap167.43B
Revenue(TTM)70.73B
Net Income(TTM)7.61B
Analysts76.25
Price Target294.03 (8.91%)
Short Float %2.26%
Short Ratio3.59
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)0%
PT rev (3m)-11.92%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.33 | ||
| Fwd PE | 17.98 | ||
| P/S | 2.37 | ||
| P/FCF | 14.54 | ||
| 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 Year29.46%
EBIT Next 3Y13.15%
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%.