ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
NYSE:ACN - New York Stock Exchange, Inc. - IE00B4BNMY34 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ACN. ACN was compared to 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. ACN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ACN was profitable.
In the past year ACN had a positive cash flow from operations.
In the past 5 years ACN has always been profitable.
ACN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ACN (12.55%) is better than 92.68% of its industry peers.
ACN has a better Return On Equity (26.01%) than 89.02% of its industry peers.
The Return On Invested Capital of ACN (18.26%) is better than 89.02% 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 22.82%.
The last Return On Invested Capital (18.26%) for ACN is well below the 3 year average (22.55%), which needs to be investigated, but indicates that ACN had better years and this may not be a problem.
| 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
With an excellent Profit Margin value of 11.61%, ACN belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
ACN's Profit Margin has been stable in the last couple of years.
ACN has a Operating Margin of 15.53%. This is amongst the best in the industry. ACN outperforms 84.15% of its industry peers.
In the last couple of years the Operating Margin of ACN has remained more or less at the same level.
With a Gross Margin value of 32.07%, ACN perfoms like the industry average, outperforming 45.12% 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 | 15.53% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ACN is creating some 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.
The debt/assets ratio for ACN is higher compared to a year ago.
2.2 Solvency
ACN has an Altman-Z score of 5.20. This indicates that ACN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.20, ACN is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
ACN has a debt to FCF ratio of 0.50. This is a very positive value and a sign of high solvency as it would only need 0.50 years to pay back of all of its debts.
The Debt to FCF ratio of ACN (0.50) is better than 86.59% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that ACN is not too dependend on debt financing.
ACN has a Debt to Equity ratio of 0.16. This is in the better half of the industry: ACN outperforms 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 5.2 |
ROIC/WACC1.27
WACC14.41%
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 Current ratio of 1.46. This is in the lower half of the industry: ACN underperforms 60.98% of its industry peers.
ACN has a Quick 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 Quick ratio of 1.46. This is in the lower half of the industry: ACN underperforms 60.98% of 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 | 1.46 | ||
| 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%.
The Earnings Per Share has been growing by 10.20% 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 6.21%.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
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 small growth in Earnings Per Share. The EPS will grow by 7.30% on average per year.
The Revenue is expected to grow by 6.19% on average over the next years.
EPS Next Y8.75%
EPS Next 2Y7.91%
EPS Next 3Y8.12%
EPS Next 5Y7.3%
Revenue Next Year6.97%
Revenue Next 2Y6.21%
Revenue Next 3Y6.23%
Revenue Next 5Y6.19%
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
ACN is valuated rather expensively with a Price/Earnings ratio of 19.51.
Compared to the rest of the industry, the Price/Earnings ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 63.41% of the companies listed in the same industry.
ACN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.78 indicates a rather expensive valuation of ACN.
Based on the Price/Forward Earnings ratio, ACN is valued a bit cheaper than 62.20% of the companies in the same industry.
ACN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 17.78 |
4.2 Price Multiples
ACN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ACN is cheaper than 69.51% of the companies in the same industry.
ACN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ACN is cheaper than 81.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.05 | ||
| EV/EBITDA | 11.57 |
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)2.23
PEG (5Y)1.91
EPS Next 2Y7.91%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.22%. 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 2.51. ACN pays more dividend than 91.46% of the companies in the same industry.
ACN's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of ACN is nicely growing with an annual growth rate of 12.12%!
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)12.12%
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.
The dividend of ACN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.12%
EPS Next 2Y7.91%
EPS Next 3Y8.12%
247.54
+0.47 (+0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners79.8%
Inst Owner Change-1.11%
Ins Owners0.07%
Ins Owner Change-0.91%
Market Cap154.18B
Analysts80.69
Price Target350.24 (41.49%)
Short Float %1.79%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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)-3.32%
PT rev (3m)-4.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)1.23%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 17.78 | ||
| P/S | 2.25 | ||
| P/FCF | 15.05 | ||
| P/OCF | 14.08 | ||
| P/B | 5.05 | ||
| P/tB | 25.02 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)12.69
EY5.13%
EPS(NY)13.93
Fwd EY5.63%
FCF(TTM)16.45
FCFY6.64%
OCF(TTM)17.58
OCFY7.1%
SpS109.95
BVpS49.06
TBVpS9.89
PEG (NY)2.23
PEG (5Y)1.91
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 | 5.2 |
F-Score5
WACC14.41%
ROIC/WACC1.27
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 Y8.75%
EPS Next 2Y7.91%
EPS Next 3Y8.12%
EPS Next 5Y7.3%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%7.66%
Revenue Next Year6.97%
Revenue Next 2Y6.21%
Revenue Next 3Y6.23%
Revenue Next 5Y6.19%
EBIT growth 1Y6.79%
EBIT growth 3Y9.6%
EBIT growth 5Y9.74%
EBIT Next Year29.28%
EBIT Next 3Y14.16%
EBIT Next 5Y9.9%
FCF growth 1Y9.21%
FCF growth 3Y0.86%
FCF growth 5Y7.4%
OCF growth 1Y10.55%
OCF growth 3Y0.58%
OCF growth 5Y6.62%