ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
NYSE:ACN - New York Stock Exchange, Inc. - IE00B4BNMY34 - Common Stock - Currency: USD
Taking everything into account, ACN scores 6 out of 10 in our fundamental rating. ACN was compared to 82 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. 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
ACN had positive earnings in the past year.
In the past year ACN had a positive cash flow from operations.
Each year in the past 5 years ACN has been profitable.
Each year in the past 5 years ACN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ACN (12.83%) is better than 92.68% of its industry peers.
ACN has a better Return On Equity (26.27%) than 89.02% of its industry peers.
ACN's Return On Invested Capital of 18.56% is amongst the best of the industry. ACN outperforms 90.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACN is in line with the industry average of 21.64%.
| 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 better Profit Margin (11.43%) than 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 comparable to the rest of the industry.
ACN's Gross Margin has been stable in the last couple of years.
| 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
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.
The number of shares outstanding for ACN has been reduced compared to 5 years ago.
ACN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.33 indicates that ACN is not in any danger for bankruptcy at the moment.
The Altman-Z score of ACN (6.33) is better than 80.49% of its industry peers.
The Debt to FCF ratio of ACN is 0.53, which is an excellent value as it means it would take ACN, only 0.53 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.53, ACN belongs to the best of the industry, outperforming 86.59% of the companies in the same industry.
ACN has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, ACN is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | 6.33 |
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.
Looking at the Current ratio, with a value of 1.48, ACN is in line with its industry, outperforming 41.46% of the companies in the same industry.
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 has a Quick ratio of 1.48. This is comparable to the rest of the industry: ACN outperforms 41.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.27% over the past year.
ACN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.20% yearly.
The Revenue has been growing slightly by 4.10% in the past year.
ACN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
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
Based on estimates for the next years, ACN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.51% on average per year.
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 26.03 indicates a quite expensive valuation of ACN.
ACN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.59, ACN is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.40, the valuation of ACN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.39. ACN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.03 | ||
| Fwd PE | 23.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than the industry average as 62.20% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ACN is valued a bit cheaper than the industry average as 67.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.61 | ||
| EV/EBITDA | 15.47 |
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.
The decent profitability rating of ACN may justify a higher PE ratio.
PEG (NY)3.6
PEG (5Y)2.55
EPS Next 2Y7.1%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 1.88%.
Compared to an average industry Dividend Yield of 2.52, ACN pays a better dividend. On top of this ACN pays more dividend than 87.80% of the companies listed in the same industry.
ACN's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
On average, the dividend of ACN grows each year by 12.11%, which is quite nice.
ACN has paid a dividend for at least 10 years, which is 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)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%
320.92
+4.3 (+1.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners79.15%
Inst Owner Change1.28%
Ins Owners0.07%
Ins Owner Change-0.71%
Market Cap200.91B
Analysts81.33
Price Target365.69 (13.95%)
Short Float %1.41%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
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)-0.12%
PT rev (3m)-11.09%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.03 | ||
| Fwd PE | 23.4 | ||
| P/S | 2.99 | ||
| P/FCF | 20.61 | ||
| P/OCF | 19.3 | ||
| P/B | 6.87 | ||
| P/tB | 35.36 | ||
| EV/EBITDA | 15.47 |
EPS(TTM)12.33
EY3.84%
EPS(NY)13.72
Fwd EY4.27%
FCF(TTM)15.57
FCFY4.85%
OCF(TTM)16.62
OCFY5.18%
SpS107.38
BVpS46.72
TBVpS9.08
PEG (NY)3.6
PEG (5Y)2.55
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 | 6.33 |
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 Year29.28%
EBIT Next 3Y14.16%
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%