ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
NYSE:ACN - New York Stock Exchange, Inc. - IE00B4BNMY34 - Common Stock - Currency: USD
Overall ACN gets a fundamental rating of 6 out of 10. We evaluated ACN against 81 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.
1. Profitability
1.1 Basic Checks
ACN had positive earnings in the past year.
ACN had a positive operating cash flow in the past year.
Each year in the past 5 years ACN has been profitable.
In the past 5 years ACN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ACN (12.55%) is better than 92.59% of its industry peers.
ACN's Return On Equity of 26.01% is amongst the best of the industry. ACN outperforms 88.89% of its industry peers.
The Return On Invested Capital of ACN (18.26%) is better than 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACN is in line with the industry average of 21.85%.
The last Return On Invested Capital (18.26%) for ACN is well below the 3 year average (22.55%), which needs to be investigated, but indicates that ACN had better years and this may not be a problem.
| 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 83.95% 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 better Operating Margin (15.53%) than 83.95% of its industry peers.
In the last couple of years the Operating Margin of ACN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 32.07%, ACN is in line with its industry, outperforming 44.44% 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 | 15.53% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACN is creating some value.
The number of shares outstanding for ACN has been reduced compared to 1 year ago.
ACN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ACN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.84 indicates that ACN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.84, ACN is doing good in the industry, outperforming 77.78% of the companies in the same industry.
The Debt to FCF ratio of ACN is 0.50, which is an excellent value as it means it would take ACN, only 0.50 years of fcf income to pay off all of its debts.
ACN's Debt to FCF ratio of 0.50 is amongst the best of the industry. ACN outperforms 86.42% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that ACN is not too dependend on debt financing.
ACN has a Debt to Equity ratio of 0.16. This is in the better half of the industry: ACN outperforms 64.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 5.84 |
ROIC/WACC1.26
WACC14.46%
2.3 Liquidity
A Current Ratio of 1.46 indicates that ACN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, ACN is doing worse than 61.73% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that ACN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.46, ACN is doing worse than 61.73% of the companies in the same industry.
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
ACN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.82%.
ACN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.20% yearly.
The Revenue has been growing slightly by 6.21% in the past year.
ACN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
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.
Based on estimates for the next years, ACN will show a small growth in Revenue. The Revenue will grow by 6.19% on average per year.
EPS Next Y7.42%
EPS Next 2Y7.22%
EPS Next 3Y7.45%
EPS Next 5Y7.3%
Revenue Next Year5.92%
Revenue Next 2Y5.77%
Revenue Next 3Y6.16%
Revenue Next 5Y6.19%
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 24.02 indicates a rather expensive valuation of ACN.
64.20% 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 27.45. ACN is around the same levels.
Based on the Price/Forward Earnings ratio of 22.17, the valuation of ACN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 60.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, ACN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 22.17 |
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 66.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ACN is valued a bit cheaper than the industry average as 76.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.63 | ||
| EV/EBITDA | 14.31 |
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 excellent profitability rating of ACN may justify a higher PE ratio.
PEG (NY)3.24
PEG (5Y)2.36
EPS Next 2Y7.22%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.00%. 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 2.59. ACN pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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
45.12% of the earnings are spent on dividend by ACN. 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 2Y7.22%
EPS Next 3Y7.45%
304.78
+2.49 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners79.8%
Inst Owner Change1.29%
Ins Owners0.07%
Ins Owner Change-0.66%
Market Cap190.80B
Analysts81.33
Price Target362.26 (18.86%)
Short Float %1.38%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)1.79%
Min EPS beat(2)-0.84%
Max EPS beat(2)4.42%
EPS beat(4)2
Avg EPS beat(4)1.89%
Min EPS beat(4)-0.84%
Max EPS beat(4)4.66%
EPS beat(8)5
Avg EPS beat(8)1.61%
EPS beat(12)9
Avg EPS beat(12)2.36%
EPS beat(16)12
Avg EPS beat(16)2.55%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-0.74%
Max Revenue beat(2)1.78%
Revenue beat(4)2
Avg Revenue beat(4)0.62%
Min Revenue beat(4)-0.86%
Max Revenue beat(4)2.29%
Revenue beat(8)2
Avg Revenue beat(8)-0.31%
Revenue beat(12)4
Avg Revenue beat(12)-0.31%
Revenue beat(16)6
Avg Revenue beat(16)0.07%
PT rev (1m)-0.52%
PT rev (3m)-10.18%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 22.17 | ||
| P/S | 2.79 | ||
| P/FCF | 18.63 | ||
| P/OCF | 17.43 | ||
| P/B | 6.24 | ||
| P/tB | 30.97 | ||
| EV/EBITDA | 14.31 |
EPS(TTM)12.69
EY4.16%
EPS(NY)13.75
Fwd EY4.51%
FCF(TTM)16.36
FCFY5.37%
OCF(TTM)17.49
OCFY5.74%
SpS109.39
BVpS48.81
TBVpS9.84
PEG (NY)3.24
PEG (5Y)2.36
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 | 5.84 |
F-Score5
WACC14.46%
ROIC/WACC1.26
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 Y7.42%
EPS Next 2Y7.22%
EPS Next 3Y7.45%
EPS Next 5Y7.3%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%7.66%
Revenue Next Year5.92%
Revenue Next 2Y5.77%
Revenue Next 3Y6.16%
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%