ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
NYSE:ACN - New York Stock Exchange, Inc. - IE00B4BNMY34 - Common Stock - Currency: USD
ACN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 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. While showing a medium growth rate, ACN is valued expensive at the moment. 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.
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 (12.83%) than 92.68% of its industry peers.
The Return On Equity of ACN (26.27%) is better than 89.02% of its industry peers.
ACN has a better Return On Invested Capital (18.56%) than 90.24% of its industry peers.
ACN had an Average Return On Invested Capital over the past 3 years of 22.55%. This is in line with the industry average of 22.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | 26.27% | ||
| ROIC | 18.56% |
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
ACN has a Profit Margin of 11.43%. This is amongst the best in the industry. ACN outperforms 82.93% of its industry peers.
In the last couple of years the Profit Margin of ACN has remained more or less at the same level.
With an excellent Operating Margin value of 15.41%, ACN belongs to the best of the industry, outperforming 82.93% 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.
ACN has a Gross Margin (32.18%) which is in line with 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 | 15.41% | ||
| PM (TTM) | 11.43% | ||
| GM | 32.18% |
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
The number of shares outstanding for ACN has been reduced compared to 5 years ago.
The debt/assets ratio for ACN is higher compared to a year ago.
2.2 Solvency
ACN has an Altman-Z score of 6.37. This indicates that ACN is financially healthy and has little risk of bankruptcy at the moment.
ACN has a Altman-Z score of 6.37. This is amongst the best in the industry. ACN outperforms 81.71% of its industry peers.
ACN has a debt to FCF ratio of 0.53. This is a very positive value and a sign of high solvency as it would only need 0.53 years to pay back of all of its debts.
The Debt to FCF ratio of ACN (0.53) is better than 84.15% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that ACN is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.17, ACN is doing good in the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | 6.37 |
ROIC/WACC2.42
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.48 indicates that ACN should not have too much problems paying its short term obligations.
ACN has a Current ratio of 1.48. This is comparable to the rest of the industry: ACN outperforms 42.68% of its industry peers.
ACN has a Quick Ratio of 1.48. This is a normal value and indicates that ACN is financially healthy and should not expect problems in meeting its short term obligations.
ACN's Quick ratio of 1.48 is in line compared to the rest of the industry. ACN outperforms 43.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
ACN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.27%.
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 4.10% 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)3.27%
EPS 3Y10.15%
EPS 5Y10.2%
EPS Q2Q%1.81%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%5.44%
3.2 Future
The Earnings Per Share is expected to grow by 8.51% on average over the next years. This is quite good.
Based on estimates for the next years, ACN will show a small growth in Revenue. The Revenue will grow by 7.18% on average per year.
EPS Next Y7.23%
EPS Next 2Y7.1%
EPS Next 3Y7.69%
EPS Next 5Y8.51%
Revenue Next Year5.77%
Revenue Next 2Y5.7%
Revenue Next 3Y6.24%
Revenue Next 5Y7.18%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.77 indicates a quite expensive valuation of ACN.
Compared to the rest of the industry, the Price/Earnings ratio of ACN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.03, ACN is valued at the same level.
A Price/Forward Earnings ratio of 23.16 indicates a rather expensive valuation of ACN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACN is on the same level as its industry peers.
ACN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.77 | ||
| Fwd PE | 23.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 65.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.41 | ||
| EV/EBITDA | 15.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ACN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.57
PEG (5Y)2.53
EPS Next 2Y7.1%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 1.83%.
ACN's Dividend Yield is rather good when compared to the industry average which is at 2.35. ACN pays more dividend than 89.02% 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 | 1.83% |
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
45.21% 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.
DP45.21%
EPS Next 2Y7.1%
EPS Next 3Y7.69%
317.72
-2.46 (-0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners79.15%
Inst Owner Change1.21%
Ins Owners0.07%
Ins Owner Change-0.52%
Market Cap198.90B
Analysts80.65
Price Target364.14 (14.61%)
Short Float %1.26%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend5.17
Dividend Growth(5Y)12.11%
DP45.21%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.91%
Min EPS beat(2)-0.84%
Max EPS beat(2)4.66%
EPS beat(4)1
Avg EPS beat(4)0.38%
Min EPS beat(4)-1.64%
Max EPS beat(4)4.66%
EPS beat(8)5
Avg EPS beat(8)1.55%
EPS beat(12)9
Avg EPS beat(12)2.17%
EPS beat(16)12
Avg EPS beat(16)2.67%
Revenue beat(2)1
Avg Revenue beat(2)0.78%
Min Revenue beat(2)-0.74%
Max Revenue beat(2)2.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.17%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)2.29%
Revenue beat(8)1
Avg Revenue beat(8)-0.66%
Revenue beat(12)3
Avg Revenue beat(12)-0.47%
Revenue beat(16)6
Avg Revenue beat(16)0.12%
PT rev (1m)-2.57%
PT rev (3m)-9.92%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.66%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.77 | ||
| Fwd PE | 23.16 | ||
| P/S | 2.96 | ||
| P/FCF | 20.41 | ||
| P/OCF | 19.11 | ||
| P/B | 6.8 | ||
| P/tB | 35.01 | ||
| EV/EBITDA | 15.65 |
EPS(TTM)12.33
EY3.88%
EPS(NY)13.72
Fwd EY4.32%
FCF(TTM)15.57
FCFY4.9%
OCF(TTM)16.62
OCFY5.23%
SpS107.38
BVpS46.72
TBVpS9.08
PEG (NY)3.57
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.83% | ||
| ROE | 26.27% | ||
| ROCE | 24.24% | ||
| ROIC | 18.56% | ||
| ROICexc | 23.16% | ||
| ROICexgc | 74.28% | ||
| OM | 15.41% | ||
| PM (TTM) | 11.43% | ||
| GM | 32.18% | ||
| FCFM | 14.5% |
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 Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.53 | ||
| Debt/EBITDA | 0.4 | ||
| Cap/Depr | 29.61% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.64% | ||
| Profit Quality | 126.85% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 6.37 |
F-Score5
WACC7.68%
ROIC/WACC2.42
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)3.27%
EPS 3Y10.15%
EPS 5Y10.2%
EPS Q2Q%1.81%
EPS Next Y7.23%
EPS Next 2Y7.1%
EPS Next 3Y7.69%
EPS Next 5Y8.51%
Revenue 1Y (TTM)4.1%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%5.44%
Revenue Next Year5.77%
Revenue Next 2Y5.7%
Revenue Next 3Y6.24%
Revenue Next 5Y7.18%
EBIT growth 1Y4.05%
EBIT growth 3Y9.6%
EBIT growth 5Y9.74%
EBIT Next Year29.39%
EBIT Next 3Y14.42%
EBIT Next 5Y10.89%
FCF growth 1Y7.08%
FCF growth 3Y0.86%
FCF growth 5Y7.4%
OCF growth 1Y7.51%
OCF growth 3Y0.58%
OCF growth 5Y6.62%