ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - NYSE:ACN - IE00B4BNMY34 - Common Stock
242.56 USD
-1.99 (-0.81%)
242.56 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ACN. ACN was compared to 84 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 correct valuation and a medium growth rate. 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.
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
The Return On Assets of ACN (11.74%) is better than 90.48% of its industry peers.
With an excellent Return On Equity value of 24.61%, ACN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of ACN (18.38%) is better than 90.48% of its industry peers.
ACN had an Average Return On Invested Capital over the past 3 years of 20.60%. This is significantly below the industry average of 28.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 24.61% | ||
| ROIC | 18.38% |
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 Profit Margin of 11.02%. This is amongst the best in the industry. ACN outperforms 80.95% of its industry peers.
ACN's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 15.56%, ACN belongs to the best of the industry, outperforming 80.95% 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.
The Gross Margin of ACN (31.91%) is comparable to the rest of the industry.
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 | 15.56% | ||
| PM (TTM) | 11.02% | ||
| GM | 31.91% |
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
Compared to 1 year ago, ACN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.94 indicates that ACN is not in any danger for bankruptcy at the moment.
ACN's Altman-Z score of 4.94 is fine compared to the rest of the industry. ACN outperforms 70.24% of its industry peers.
The Debt to FCF ratio of ACN is 0.47, which is an excellent value as it means it would take ACN, only 0.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACN (0.47) is better than 85.71% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that ACN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.16, ACN is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 4.94 |
ROIC/WACC2.45
WACC7.51%
2.3 Liquidity
ACN has a Current Ratio of 1.42. 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 worse Current ratio (1.42) than 60.71% of its industry peers.
ACN has a Quick Ratio of 1.42. This is a normal value and indicates that ACN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.42, ACN is doing worse than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.11% 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 11.21% yearly.
ACN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.36%.
The Revenue has been growing by 9.47% on average over the past years. This is quite good.
EPS 1Y (TTM)8.11%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%8.6%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%7.26%
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 8.14% yearly.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y7.57%
EPS Next 2Y7.73%
EPS Next 3Y8.68%
EPS Next 5Y8.14%
Revenue Next Year6.13%
Revenue Next 2Y5.75%
Revenue Next 3Y5.83%
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.
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 18.76, the valuation of ACN can be described as rather expensive.
65.48% of the companies in the same industry are more expensive than ACN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.35, ACN is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.44, which indicates a rather expensive current valuation of ACN.
Based on the Price/Forward Earnings ratio, ACN is valued a bit cheaper than 67.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.72, ACN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 17.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ACN is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.83 | ||
| EV/EBITDA | 10.94 |
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.
ACN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.48
PEG (5Y)1.67
EPS Next 2Y7.73%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.70%, ACN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.02, ACN pays a better dividend. On top of this ACN pays more dividend than 95.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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.
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
ACN pays out 48.19% 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.
DP48.19%
EPS Next 2Y7.73%
EPS Next 3Y8.68%
242.56
-1.99 (-0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-0.98%
Ins Owners0.07%
Ins Owner Change1.11%
Market Cap150.42B
Revenue(TTM)69.67B
Net Income(TTM)7.68B
Analysts76.25
Price Target283.15 (16.73%)
Short Float %2.15%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend5.93
Dividend Growth(5Y)13.12%
DP48.19%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.62%
Min EPS beat(2)1.25%
Max EPS beat(2)3.99%
EPS beat(4)3
Avg EPS beat(4)2.26%
Min EPS beat(4)-0.84%
Max EPS beat(4)4.66%
EPS beat(8)5
Avg EPS beat(8)1.59%
EPS beat(12)9
Avg EPS beat(12)2.42%
EPS beat(16)13
Avg EPS beat(16)2.64%
Revenue beat(2)2
Avg Revenue beat(2)0.91%
Min Revenue beat(2)0.37%
Max Revenue beat(2)1.45%
Revenue beat(4)3
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-0.74%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-0.12%
Revenue beat(12)5
Avg Revenue beat(12)-0.24%
Revenue beat(16)7
Avg Revenue beat(16)0.14%
PT rev (1m)-3.16%
PT rev (3m)-16.6%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)0.83%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 17.44 | ||
| P/S | 2.16 | ||
| P/FCF | 13.83 | ||
| P/OCF | 13.11 | ||
| P/B | 4.82 | ||
| P/tB | 24.07 | ||
| EV/EBITDA | 10.94 |
EPS(TTM)12.93
EY5.33%
EPS(NY)13.91
Fwd EY5.73%
FCF(TTM)17.54
FCFY7.23%
OCF(TTM)18.5
OCFY7.63%
SpS112.35
BVpS50.3
TBVpS10.08
PEG (NY)2.48
PEG (5Y)1.67
Graham Number120.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 24.61% | ||
| ROCE | 24.07% | ||
| ROIC | 18.38% | ||
| ROICexc | 24.67% | ||
| ROICexgc | 96.16% | ||
| OM | 15.56% | ||
| PM (TTM) | 11.02% | ||
| GM | 31.91% | ||
| FCFM | 15.61% |
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 Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.47 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 24.58% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 69.75 | ||
| Cash Conversion | 86.39% | ||
| Profit Quality | 141.62% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 4.94 |
F-Score5
WACC7.51%
ROIC/WACC2.45
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)8.11%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%8.6%
EPS Next Y7.57%
EPS Next 2Y7.73%
EPS Next 3Y8.68%
EPS Next 5Y8.14%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%7.26%
Revenue Next Year6.13%
Revenue Next 2Y5.75%
Revenue Next 3Y5.83%
Revenue Next 5Y4.94%
EBIT growth 1Y8.04%
EBIT growth 3Y4.99%
EBIT growth 5Y10.73%
EBIT Next Year27.65%
EBIT Next 3Y13.45%
EBIT Next 5Y9.01%
FCF growth 1Y26.23%
FCF growth 3Y7.22%
FCF growth 5Y7.38%
OCF growth 1Y25.66%
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 5 / 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 7.57% 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 48.19%.