ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ACN - IE00B4BNMY34 - Common Stock
268.3 USD
-1.7 (-0.63%)
269.99 USD
+1.69 (+0.63%)
Taking everything into account, ACN scores 6 out of 10 in our fundamental rating. ACN was compared to 88 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making ACN a very profitable company, without any liquidiy or solvency issues. ACN is not valued too expensively and it also shows a decent growth rate. These ratings would make ACN suitable for quality investing!
1. Profitability
1.1 Basic Checks
ACN had positive earnings in the past year.
ACN had a positive operating cash flow in the past year.
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
ACN has a Return On Assets of 11.76%. This is amongst the best in the industry. ACN outperforms 88.64% of its industry peers.
ACN has a better Return On Equity (24.66%) than 86.36% of its industry peers.
The Return On Invested Capital of ACN (18.88%) is better than 93.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACN is significantly below the industry average of 29.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.76% | ||
| ROE | 24.66% | ||
| ROIC | 18.88% |
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
Looking at the Profit Margin, with a value of 10.76%, ACN is in the better half of the industry, outperforming 79.55% 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 15.66%. This is amongst the best in the industry. ACN outperforms 81.82% of its industry peers.
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 of 31.97%. This is comparable to the rest of the industry: ACN outperforms 46.59% 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 | 15.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 31.97% |
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.
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 5.32. This indicates that ACN is financially healthy and has little risk of bankruptcy at the moment.
ACN's Altman-Z score of 5.32 is fine compared to the rest of the industry. ACN outperforms 76.14% of its industry peers.
The Debt to FCF ratio of ACN is 0.45, which is an excellent value as it means it would take ACN, only 0.45 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACN (0.45) is better than 84.09% 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 61.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.32 |
ROIC/WACC2.53
WACC7.47%
2.3 Liquidity
ACN has a Current Ratio of 1.41. 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 1.41 is on the low side compared to the rest of the industry. ACN is outperformed by 60.23% of its industry peers.
ACN has a Quick Ratio of 1.41. This is a normal value and indicates that ACN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.41, ACN is in line with its industry, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.14% over the past year.
Measured over the past years, ACN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.21% on average per year.
ACN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.58%.
The Revenue has been growing by 9.47% on average over the past years. This is quite good.
EPS 1Y (TTM)8.14%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%9.75%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%5.95%
3.2 Future
ACN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.14% yearly.
Based on estimates for the next years, ACN will show a small growth in Revenue. The Revenue will grow by 4.94% on average per year.
EPS Next Y7.98%
EPS Next 2Y7.77%
EPS Next 3Y7.93%
EPS Next 5Y8.14%
Revenue Next Year6.21%
Revenue Next 2Y5.8%
Revenue Next 3Y5.88%
Revenue Next 5Y4.94%
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.
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
A Price/Earnings ratio of 20.20 indicates a rather expensive valuation of ACN.
ACN's Price/Earnings ratio is a bit cheaper when compared to the industry. ACN is cheaper than 67.05% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. ACN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.87, which indicates a rather expensive current valuation of ACN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 68.18% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. ACN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 17.87 |
4.2 Price Multiples
73.86% of the companies in the same industry are more expensive than ACN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ACN is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.45 | ||
| EV/EBITDA | 12.04 |
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)2.53
PEG (5Y)1.8
EPS Next 2Y7.77%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.41%. 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 0.43. ACN pays more dividend than 94.32% of the companies in the same industry.
ACN's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of ACN is nicely growing with an annual growth rate of 13.12%!
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)13.12%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
49.72% 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.
DP49.72%
EPS Next 2Y7.77%
EPS Next 3Y7.93%
268.3
-1.7 (-0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners82.02%
Inst Owner Change1.2%
Ins Owners0.07%
Ins Owner Change1.96%
Market Cap166.38B
Revenue(TTM)70.73B
Net Income(TTM)7.61B
Analysts76.25
Price Target294.03 (9.59%)
Short Float %1.89%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend5.93
Dividend Growth(5Y)13.12%
DP49.72%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.79%
Min EPS beat(2)1.25%
Max EPS beat(2)4.33%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-0.84%
Max EPS beat(4)4.33%
EPS beat(8)5
Avg EPS beat(8)1.76%
EPS beat(12)9
Avg EPS beat(12)2.39%
EPS beat(16)13
Avg EPS beat(16)2.61%
Revenue beat(2)2
Avg Revenue beat(2)0.3%
Min Revenue beat(2)0.23%
Max Revenue beat(2)0.37%
Revenue beat(4)3
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-0.74%
Max Revenue beat(4)1.45%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.23%
Revenue beat(16)7
Avg Revenue beat(16)-0.12%
PT rev (1m)3.84%
PT rev (3m)-8.53%
EPS NQ rev (1m)-4.38%
EPS NQ rev (3m)-4.56%
EPS NY rev (1m)0.38%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 17.87 | ||
| P/S | 2.35 | ||
| P/FCF | 14.45 | ||
| P/OCF | 13.73 | ||
| P/B | 5.39 | ||
| P/tB | 28.13 | ||
| EV/EBITDA | 12.04 |
EPS(TTM)13.28
EY4.95%
EPS(NY)15.02
Fwd EY5.6%
FCF(TTM)18.56
FCFY6.92%
OCF(TTM)19.54
OCFY7.28%
SpS114.05
BVpS49.78
TBVpS9.54
PEG (NY)2.53
PEG (5Y)1.8
Graham Number121.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.76% | ||
| ROE | 24.66% | ||
| ROCE | 24.72% | ||
| ROIC | 18.88% | ||
| ROICexc | 24.06% | ||
| ROICexgc | 82.97% | ||
| OM | 15.66% | ||
| PM (TTM) | 10.76% | ||
| GM | 31.97% | ||
| FCFM | 16.28% |
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)102.73%
ROICexgc(5y)100.76%
ROCE(3y)26.98%
ROCE(5y)28.03%
ROICexgc growth 3Y-3.04%
ROICexgc growth 5Y6.74%
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 Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 24.63% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.56% | ||
| Profit Quality | 151.25% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 5.32 |
F-Score5
WACC7.47%
ROIC/WACC2.53
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)8.14%
EPS 3Y5.99%
EPS 5Y11.21%
EPS Q2Q%9.75%
EPS Next Y7.98%
EPS Next 2Y7.77%
EPS Next 3Y7.93%
EPS Next 5Y8.14%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y4.19%
Revenue growth 5Y9.47%
Sales Q2Q%5.95%
Revenue Next Year6.21%
Revenue Next 2Y5.8%
Revenue Next 3Y5.88%
Revenue Next 5Y4.94%
EBIT growth 1Y7.74%
EBIT growth 3Y4.99%
EBIT growth 5Y10.73%
EBIT Next Year28.83%
EBIT Next 3Y13.99%
EBIT Next 5Y9.01%
FCF growth 1Y27.49%
FCF growth 3Y7.22%
FCF growth 5Y7.38%
OCF growth 1Y27.17%
OCF growth 3Y6.34%
OCF growth 5Y6.91%
ACCENTURE PLC-CL A / ACN FAQ
What is the ChartMill fundamental rating of ACCENTURE PLC-CL A (ACN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ACN.
Can you provide the valuation status for ACCENTURE PLC-CL A?
ChartMill assigns a valuation rating of 4 / 10 to ACCENTURE PLC-CL A (ACN). This can be considered as Fairly Valued.
How profitable is ACCENTURE PLC-CL A (ACN) stock?
ACCENTURE PLC-CL A (ACN) has a profitability rating of 7 / 10.
Can you provide the financial health for ACN stock?
The financial health rating of ACCENTURE PLC-CL A (ACN) is 7 / 10.
Is the dividend of ACCENTURE PLC-CL A sustainable?
The dividend rating of ACCENTURE PLC-CL A (ACN) is 6 / 10 and the dividend payout ratio is 49.72%.