ACCENTURE PLC-CL A (ACN)
IE00B4BNMY34 - Common Stock
Taking everything into account, ACN scores 7 out of 10 in our fundamental rating. ACN was compared to 86 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 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ACN had positive earnings in the past year.
In the past year ACN had a positive cash flow from operations.
ACN had positive earnings in each of the past 5 years.
In the past 5 years ACN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ACN (13.70%) is better than 92.86% of its industry peers.
ACN has a Return On Equity of 25.92%. This is amongst the best in the industry. ACN outperforms 90.48% of its industry peers.
With an excellent Return On Invested Capital value of 21.61%, ACN belongs to the best of the industry, outperforming 94.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ACN is significantly above the industry average of 12.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.7% | ||
| ROE | 25.92% | ||
| ROIC | 21.61% |
ROA(3y)13.88%
ROA(5y)14.29%
ROE(3y)29.37%
ROE(5y)30.26%
ROIC(3y)22.63%
ROIC(5y)22.79%
1.3 Margins
With a decent Profit Margin value of 10.89%, ACN is doing good in the industry, outperforming 77.38% of the companies in the same industry.
ACN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.42%, ACN belongs to the best of the industry, outperforming 86.90% 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's Gross Margin of 32.58% is in line compared to the rest of the industry. ACN outperforms 44.05% of 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 | 15.42% | ||
| PM (TTM) | 10.89% | ||
| GM | 32.58% |
OM growth 3Y1.57%
OM growth 5Y1.37%
PM growth 3Y-2.38%
PM growth 5Y1.59%
GM growth 3Y0.85%
GM growth 5Y1.19%
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.
Compared to 1 year ago, ACN has a worse debt to assets ratio.
2.2 Solvency
ACN has an Altman-Z score of 7.85. This indicates that ACN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.85, ACN belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
The Debt to FCF ratio of ACN is 0.02, which is an excellent value as it means it would take ACN, only 0.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.02, ACN belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
ACN has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.00, ACN belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 7.85 |
ROIC/WACC2.91
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.26 indicates that ACN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.26, ACN perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
ACN has a Quick Ratio of 1.26. 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 Quick ratio (1.26) which is in line with its industry peers.
ACN does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
ACN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.57%.
ACN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.60% yearly.
ACN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.26%.
The Revenue has been growing by 9.36% on average over the past years. This is quite good.
EPS 1Y (TTM)5.57%
EPS 3Y15.37%
EPS 5Y11.6%
EPS growth Q2Q2.97%
Revenue 1Y (TTM)2.26%
Revenue growth 3Y13.09%
Revenue growth 5Y9.36%
Revenue growth Q2Q-0.09%
3.2 Future
ACN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.67% yearly.
ACN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.85% yearly.
EPS Next Y4.73%
EPS Next 2Y6.55%
EPS Next 3Y8.07%
EPS Next 5Y-0.67%
Revenue Next Year1.64%
Revenue Next 2Y4.22%
Revenue Next 3Y5.54%
Revenue Next 5Y5.85%
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
Based on the Price/Earnings ratio of 26.54, the valuation of ACN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ACN is on the same level as its industry peers.
ACN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.20.
The Price/Forward Earnings ratio is 23.91, which indicates a rather expensive current valuation of ACN.
ACN's Price/Forward Earnings ratio is in line with the industry average.
ACN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.54 | ||
| Fwd PE | 23.91 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ACN.
ACN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ACN is cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.14 | ||
| EV/EBITDA | 16.97 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.61
PEG (5Y)2.29
EPS Next 2Y6.55%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.63%, ACN has a reasonable but not impressive dividend return.
ACN's Dividend Yield is rather good when compared to the industry average which is at 2.76. ACN pays more dividend than 85.71% of the companies in the same industry.
ACN's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
On average, the dividend of ACN grows each year by 11.33%, which is quite nice.
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 last 3 years.
Dividend Growth(5Y)11.33%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
43.16% of the earnings are spent on dividend by ACN. This is a bit on the high side, but may be sustainable.
DP43.16%
EPS Next 2Y6.55%
EPS Next 3Y8.07%
ACCENTURE PLC-CL A
NYSE:ACN (4/23/2024, 7:04:00 PM)
After market: 317.3 +0.47 (+0.15%)316.83
-0.59 (-0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap212.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.54 | ||
| Fwd PE | 23.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.61
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.7% | ||
| ROE | 25.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.42% | ||
| PM (TTM) | 10.89% | ||
| GM | 32.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.57%
EPS 3Y15.37%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.26%
Revenue growth 3Y13.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y