ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
NYSE:ACN - IE00B4BNMY34 - Common Stock
256.25 USD
-0.87 (-0.34%)
ACN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 83 industry peers in the IT Services industry. ACN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ACN has a decent growth rate and is not valued too expensively. This makes ACN very considerable 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.
ACN had positive earnings in each of the past 5 years.
ACN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.55%, ACN belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
The Return On Equity of ACN (26.01%) is better than 90.36% of its industry peers.
ACN's Return On Invested Capital of 18.26% is amongst the best of the industry. ACN outperforms 91.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACN is in line with the industry average of 22.12%.
The 3 year average ROIC (22.55%) for ACN is well above the current ROIC(18.26%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of ACN (11.61%) is better than 83.13% of its industry peers.
ACN's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 15.53%, ACN belongs to the best of the industry, outperforming 84.34% of the companies in the same industry.
ACN's Operating Margin has been stable in the last couple of years.
ACN has a Gross Margin (32.07%) which is in line with its industry peers.
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
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.
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 5.31 indicates that ACN is not in any danger for bankruptcy at the moment.
ACN has a Altman-Z score of 5.31. This is in the better half of the industry: ACN outperforms 75.90% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.50, ACN belongs to the best of the industry, outperforming 89.16% of the companies in the same industry.
ACN has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
ACN has a Debt to Equity ratio of 0.16. This is in the better half of the industry: ACN outperforms 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 5.31 |
ROIC/WACC2.44
WACC7.48%
2.3 Liquidity
ACN has a Current Ratio of 1.46. 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 (1.46) than 63.86% of its industry peers.
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 63.86% 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%.
Measured over the past years, ACN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.20% on average per year.
Looking at the last year, ACN shows a small growth in Revenue. The Revenue has grown by 6.21% in the last 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
Based on estimates for the next years, ACN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.43% on average per year.
Based on estimates for the next years, ACN will show a small growth in Revenue. The Revenue will grow by 5.58% on average per year.
EPS Next Y8.69%
EPS Next 2Y7.94%
EPS Next 3Y8.1%
EPS Next 5Y8.43%
Revenue Next Year7.01%
Revenue Next 2Y6.21%
Revenue Next 3Y6.21%
Revenue Next 5Y5.58%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 20.19, which indicates a rather expensive current valuation of ACN.
62.65% of the companies in the same industry are more expensive than ACN, based on the Price/Earnings ratio.
ACN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.39, ACN is valued on the expensive side.
61.45% of the companies in the same industry are more expensive than ACN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, ACN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.19 | ||
| Fwd PE | 18.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than 67.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACN is valued a bit cheaper than 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.58 | ||
| EV/EBITDA | 12.05 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)1.98
EPS Next 2Y7.94%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.33%.
Compared to an average industry Dividend Yield of 2.44, ACN pays a better dividend. On top of this ACN pays more dividend than 90.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
On average, the dividend of ACN grows each year by 12.12%, which is quite nice.
ACN has paid a dividend for at least 10 years, which is 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)12.12%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ACN pays out 45.12% 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.
DP45.12%
EPS Next 2Y7.94%
EPS Next 3Y8.1%
NYSE:ACN (8/28/2025, 9:59:08 AM)
256.25
-0.87 (-0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners80.21%
Inst Owner Change-0.43%
Ins Owners0.07%
Ins Owner Change-0.61%
Market Cap159.61B
Analysts77.42
Price Target332.96 (29.94%)
Short Float %1.99%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)1.57%
Min EPS beat(2)-0.84%
Max EPS beat(2)3.99%
EPS beat(4)2
Avg EPS beat(4)1.78%
Min EPS beat(4)-0.84%
Max EPS beat(4)4.66%
EPS beat(8)5
Avg EPS beat(8)1.56%
EPS beat(12)9
Avg EPS beat(12)2.33%
EPS beat(16)12
Avg EPS beat(16)2.52%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-0.74%
Max Revenue beat(2)1.45%
Revenue beat(4)2
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-0.86%
Max Revenue beat(4)2.29%
Revenue beat(8)2
Avg Revenue beat(8)-0.35%
Revenue beat(12)4
Avg Revenue beat(12)-0.34%
Revenue beat(16)6
Avg Revenue beat(16)0.05%
PT rev (1m)-4.93%
PT rev (3m)-8.56%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.19 | ||
| Fwd PE | 18.39 | ||
| P/S | 2.33 | ||
| P/FCF | 15.58 | ||
| P/OCF | 14.58 | ||
| P/B | 5.22 | ||
| P/tB | 25.9 | ||
| EV/EBITDA | 12.05 |
EPS(TTM)12.69
EY4.95%
EPS(NY)13.93
Fwd EY5.44%
FCF(TTM)16.45
FCFY6.42%
OCF(TTM)17.58
OCFY6.86%
SpS109.95
BVpS49.06
TBVpS9.89
PEG (NY)2.32
PEG (5Y)1.98
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 | 5.31 |
F-Score5
WACC7.48%
ROIC/WACC2.44
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 Y8.69%
EPS Next 2Y7.94%
EPS Next 3Y8.1%
EPS Next 5Y8.43%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%7.66%
Revenue Next Year7.01%
Revenue Next 2Y6.21%
Revenue Next 3Y6.21%
Revenue Next 5Y5.58%
EBIT growth 1Y6.79%
EBIT growth 3Y9.6%
EBIT growth 5Y9.74%
EBIT Next Year29.86%
EBIT Next 3Y14.23%
EBIT Next 5Y9.41%
FCF growth 1Y9.21%
FCF growth 3Y0.86%
FCF growth 5Y7.4%
OCF growth 1Y10.55%
OCF growth 3Y0.58%
OCF growth 5Y6.62%