ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - NYSE:ACN - IE00B4BNMY34 - Common Stock
242.18 USD
+3.79 (+1.59%)
242.18 USD
0 (0%)
Taking everything into account, ACN scores 6 out of 10 in our fundamental rating. ACN was compared to 86 industry peers in the IT Services industry. While ACN has a great profitability rating, there are some minor concerns on its financial health. ACN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACN was profitable.
ACN had a positive operating cash flow in the past year.
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
ACN has a Return On Assets of 11.74%. This is amongst the best in the industry. ACN outperforms 90.70% of its industry peers.
ACN has a Return On Equity of 24.61%. This is amongst the best in the industry. ACN outperforms 89.53% of its industry peers.
With an excellent Return On Invested Capital value of 18.38%, ACN belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ACN is in line with the industry average of 21.39%.
| 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's Profit Margin of 11.02% is amongst the best of the industry. ACN outperforms 81.40% of its industry peers.
In the last couple of years the Profit Margin of ACN has remained more or less at the same level.
The Operating Margin of ACN (15.56%) is better than 83.72% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 31.91%, ACN is in line with its industry, outperforming 44.19% of the companies in the same 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ACN is creating value.
ACN has less shares outstanding than it did 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
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.
ACN's Debt to FCF ratio of 0.47 is amongst the best of the industry. ACN outperforms 86.05% of its industry peers.
ACN has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, ACN is in the better half of the industry, outperforming 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | N/A |
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's Current ratio of 1.42 is on the low side compared to the rest of the industry. ACN is outperformed by 61.63% of its industry peers.
A Quick Ratio of 1.42 indicates that ACN should not have too much problems paying its short term obligations.
ACN's Quick ratio of 1.42 is on the low side compared to the rest of the industry. ACN is outperformed by 61.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
ACN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.11%, which is quite good.
The Earnings Per Share has been growing by 11.21% on average over the past years. This is quite good.
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
Based on estimates for the next years, ACN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.14% on average per year.
The Revenue is expected to grow by 4.94% on average over the next years.
EPS Next Y7.64%
EPS Next 2Y7.96%
EPS Next 3Y8.61%
EPS Next 5Y8.14%
Revenue Next Year6.08%
Revenue Next 2Y5.79%
Revenue Next 3Y5.99%
Revenue Next 5Y4.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 18.73, ACN is valued on the expensive side.
Based on the Price/Earnings ratio, ACN is valued a bit cheaper than the industry average as 68.60% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.69, ACN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.40, the valuation of ACN can be described as rather expensive.
66.28% 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 23.18, ACN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 17.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than 69.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ACN is valued cheaper than 80.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.81 | ||
| EV/EBITDA | 10.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ACN may justify a higher PE ratio.
PEG (NY)2.45
PEG (5Y)1.67
EPS Next 2Y7.96%
EPS Next 3Y8.61%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.79%. 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 2.42. ACN pays more dividend than 94.19% of the companies in the same industry.
ACN's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of ACN is nicely growing with an annual growth rate of 13.10%!
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)13.1%
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.
The dividend of ACN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.19%
EPS Next 2Y7.96%
EPS Next 3Y8.61%
242.18
+3.79 (+1.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-0.21%
Ins Owners0.07%
Ins Owner Change-0.17%
Market Cap150.19B
Analysts77.33
Price Target292.4 (20.74%)
Short Float %2.35%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend5.93
Dividend Growth(5Y)13.1%
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)-9.04%
PT rev (3m)-16.52%
EPS NQ rev (1m)1.44%
EPS NQ rev (3m)1.62%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 17.4 | ||
| P/S | 2.16 | ||
| P/FCF | 13.81 | ||
| P/OCF | 13.09 | ||
| P/B | 4.81 | ||
| P/tB | 17.34 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)12.93
EY5.34%
EPS(NY)13.92
Fwd EY5.75%
FCF(TTM)17.54
FCFY7.24%
OCF(TTM)18.5
OCFY7.64%
SpS112.35
BVpS50.3
TBVpS13.96
PEG (NY)2.45
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 24.61% | ||
| ROCE | 24.07% | ||
| ROIC | 18.38% | ||
| ROICexc | 24.67% | ||
| ROICexgc | 75.12% | ||
| 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)95.72%
ROICexgc(5y)96.56%
ROCE(3y)26.98%
ROCE(5y)28.03%
ROICexcg growth 3Y-10.7%
ROICexcg growth 5Y1.59%
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 | 250 | ||
| Cash Conversion | 86.39% | ||
| Profit Quality | 141.62% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | N/A |
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 Y7.64%
EPS Next 2Y7.96%
EPS Next 3Y8.61%
EPS Next 5Y8.14%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%7.26%
Revenue Next Year6.08%
Revenue Next 2Y5.79%
Revenue Next 3Y5.99%
Revenue Next 5Y4.94%
EBIT growth 1Y8.04%
EBIT growth 3Y4.99%
EBIT growth 5Y10.73%
EBIT Next Year27.65%
EBIT Next 3Y13.5%
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%