ACCENTURE PLC-CL A (ACN)
IE00B4BNMY34 - Common Stock
We assign a fundamental rating of 7 out of 10 to ACN. ACN was compared to 83 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 is valied quite expensively at the moment, while it does show a decent growth rate. 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
The Return On Assets of ACN (12.99%) is better than 92.59% of its industry peers.
ACN has a better Return On Equity (25.68%) than 88.89% of its industry peers.
ACN has a better Return On Invested Capital (20.79%) than 93.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACN is significantly above the industry average of 9.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.99% | ||
| ROE | 25.68% | ||
| ROIC | 20.79% |
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 11.19%, ACN belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
In the last couple of years the Profit Margin of ACN has remained more or less at the same level.
ACN has a Operating Margin of 15.46%. This is amongst the best in the industry. ACN outperforms 87.65% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
ACN's Gross Margin of 32.61% is in line compared to the rest of the industry. ACN outperforms 44.44% of its industry peers.
ACN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.46% | ||
| PM (TTM) | 11.19% | ||
| GM | 32.61% |
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.
Compared to 1 year ago, ACN has less shares outstanding
ACN has less shares outstanding than it did 5 years ago.
ACN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.72 indicates that ACN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.72, ACN belongs to the top of the industry, outperforming 86.42% of the companies in the same industry.
ACN has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.12, ACN belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
ACN has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
ACN has a better Debt to Equity ratio (0.00) than 86.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | 7.72 |
ROIC/WACC2.86
WACC7.26%
2.3 Liquidity
A Current Ratio of 1.10 indicates that ACN should not have too much problems paying its short term obligations.
ACN has a worse Current ratio (1.10) than 71.60% of its industry peers.
ACN has a Quick Ratio of 1.10. This is a normal value and indicates that ACN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ACN (1.10) is worse than 69.14% 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 | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.54% over the past year.
The Earnings Per Share has been growing by 10.20% 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 1.22% in the last year.
Measured over the past years, ACN shows a quite strong growth in Revenue. The Revenue has been growing by 8.47% on average per year.
EPS 1Y (TTM)3.54%
EPS 3Y10.15%
EPS 5Y10.2%
EPS Q2Q%9.79%
Revenue 1Y (TTM)1.22%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%9.03%
3.2 Future
The Earnings Per Share is expected to grow by 12.15% on average over the next years. This is quite good.
ACN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.15% yearly.
EPS Next Y7.16%
EPS Next 2Y8.45%
EPS Next 3Y9.14%
EPS Next 5Y12.15%
Revenue Next Year5.8%
Revenue Next 2Y6.33%
Revenue Next 3Y7.06%
Revenue Next 5Y8.15%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.83 indicates a quite expensive valuation of ACN.
The rest of the industry has a similar Price/Earnings ratio as ACN.
The average S&P500 Price/Earnings ratio is at 27.20. ACN is around the same levels.
A Price/Forward Earnings ratio of 26.04 indicates a quite expensive valuation of ACN.
ACN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.73. ACN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 26.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than the industry average as 60.49% of the companies are valued more expensively.
ACN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.61 | ||
| EV/EBITDA | 19.87 |
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)4.17
PEG (5Y)2.93
EPS Next 2Y8.45%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 1.59%. 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 2.81. ACN pays more dividend than 88.89% of the companies in the same industry.
ACN's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
On average, the dividend of ACN grows each year by 12.11%, which is quite nice.
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)12.11%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ACN pays out 44.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ACN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP44.62%
EPS Next 2Y8.45%
EPS Next 3Y9.14%
ACCENTURE PLC-CL A
NYSE:ACN (12/20/2024, 8:04:00 PM)
After market: 366.37 0 (0%)366.37
-5.79 (-1.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners72.75%
Inst Owner Change0.46%
Ins Owners0.06%
Ins Owner Change-1.05%
Market Cap246.45B
Analysts79.38
Price Target390.84 (6.68%)
Short Float %0.94%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Dividend Growth(5Y)12.11%
DP44.62%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.16%
Min EPS beat(2)-1.64%
Max EPS beat(2)-0.68%
EPS beat(4)2
Avg EPS beat(4)0.92%
Min EPS beat(4)-1.64%
Max EPS beat(4)3%
EPS beat(8)6
Avg EPS beat(8)2.5%
EPS beat(12)10
Avg EPS beat(12)2.76%
EPS beat(16)13
Avg EPS beat(16)3.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)-0.86%
Revenue beat(4)0
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)-0.82%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)0.26%
PT rev (1m)0%
PT rev (3m)10.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.31%
EPS NY rev (1m)-1.45%
EPS NY rev (3m)-0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.83 | ||
| Fwd PE | 26.04 | ||
| P/S | 3.8 | ||
| P/FCF | 28.61 | ||
| P/OCF | 26.99 | ||
| P/B | 8.71 | ||
| P/tB | 57.79 | ||
| EV/EBITDA | 19.87 |
EPS(TTM)12.28
EY3.35%
EPS(NY)14.07
Fwd EY3.84%
FCF(TTM)12.81
FCFY3.5%
OCF(TTM)13.57
OCFY3.71%
SpS96.47
BVpS42.05
TBVpS6.34
PEG (NY)4.17
PEG (5Y)2.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.99% | ||
| ROE | 25.68% | ||
| ROCE | 27.15% | ||
| ROIC | 20.79% | ||
| ROICexc | 24.05% | ||
| ROICexgc | 96.97% | ||
| OM | 15.46% | ||
| PM (TTM) | 11.19% | ||
| GM | 32.61% | ||
| FCFM | 13.27% |
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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.12 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 23.82% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 269.87 | ||
| Cash Conversion | 74.83% | ||
| Profit Quality | 118.58% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 7.72 |
F-Score5
WACC7.26%
ROIC/WACC2.86
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 5Y12.15%
Revenue 1Y (TTM)1.22%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%9.03%
Revenue Next Year5.8%
Revenue Next 2Y6.33%
Revenue Next 3Y7.06%
Revenue Next 5Y8.15%
EBIT growth 1Y1.63%
EBIT growth 3Y9.6%
EBIT growth 5Y9.74%
EBIT Next Year33.23%
EBIT Next 3Y15.56%
EBIT Next 5Y11.64%
FCF growth 1Y-4.24%
FCF growth 3Y0.86%
FCF growth 5Y7.4%
OCF growth 1Y-4.13%
OCF growth 3Y0.58%
OCF growth 5Y6.62%