ACCENTURE PLC-CL A (ACN) Stock Fundamental Analysis
USA - NYSE:ACN - IE00B4BNMY34 - Common Stock
235.5 USD
-4.49 (-1.87%)
236.05 USD
+0.55 (+0.23%)
We assign a fundamental rating of 7 out of 10 to ACN. ACN was compared to 87 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 not valued too expensively and it also shows a decent growth rate. With these ratings, ACN could be worth investigating further for quality investing!.
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
ACN's Return On Assets of 12.55% is amongst the best of the industry. ACN outperforms 91.95% of its industry peers.
ACN has a Return On Equity of 26.01%. This is amongst the best in the industry. ACN outperforms 89.66% of its industry peers.
ACN has a better Return On Invested Capital (18.26%) than 90.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ACN is in line with the industry average of 21.81%.
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
The Profit Margin of ACN (11.61%) is better than 81.61% 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 (15.53%) is better than 83.91% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
ACN has a Gross Margin (32.07%) 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 | 15.53% | ||
| 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
ACN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
ACN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.07 indicates that ACN is not in any danger for bankruptcy at the moment.
The Altman-Z score of ACN (5.07) is better than 74.71% of its industry peers.
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.
ACN's Debt to FCF ratio of 0.50 is amongst the best of the industry. ACN outperforms 86.21% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that ACN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.16, ACN is in the better half of the industry, outperforming 64.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 5.07 |
ROIC/WACC2.41
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.46 indicates that ACN should not have too much problems paying its short term obligations.
ACN's Current ratio of 1.46 is on the low side compared to the rest of the industry. ACN is outperformed by 63.22% of its industry peers.
A Quick Ratio of 1.46 indicates that ACN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.46, ACN is not doing good in the industry: 63.22% of the companies in the same industry are doing better.
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%.
Measured over the past years, ACN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.20% on average per year.
The Revenue has been growing slightly by 6.21% 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)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 quite strong growth in Earnings Per Share. The EPS will grow by 8.43% on average per year.
The Revenue is expected to grow by 5.58% on average over the next years.
EPS Next Y8.69%
EPS Next 2Y7.94%
EPS Next 3Y8.1%
EPS Next 5Y8.43%
Revenue Next Year7.01%
Revenue Next 2Y6.2%
Revenue Next 3Y6.2%
Revenue Next 5Y5.58%
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 stable.
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 18.56, ACN is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ACN indicates a somewhat cheap valuation: ACN is cheaper than 70.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, ACN is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.90, which indicates a correct valuation of ACN.
Based on the Price/Forward Earnings ratio, ACN is valued a bit cheaper than 70.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ACN to the average of the S&P500 Index (22.87), we can say ACN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.56 | ||
| Fwd PE | 16.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACN is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ACN is valued cheaper than 83.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.32 | ||
| EV/EBITDA | 11.01 |
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 excellent profitability rating of ACN may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)1.82
EPS Next 2Y7.94%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
ACN has a Yearly Dividend Yield of 2.47%.
In the last 3 months the price of ACN has falen by -20.29%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
ACN's Dividend Yield is rather good when compared to the industry average which is at 2.38. ACN pays more dividend than 93.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, ACN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
On average, the dividend of ACN grows each year by 12.12%, 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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)12.12%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
45.12% 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.
DP45.12%
EPS Next 2Y7.94%
EPS Next 3Y8.1%
235.5
-4.49 (-1.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners80.21%
Inst Owner Change-0.43%
Ins Owners0.07%
Ins Owner Change-0.59%
Market Cap146.68B
Analysts77.33
Price Target321.47 (36.51%)
Short Float %2.16%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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)-5.32%
PT rev (3m)-11.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)0%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)2.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.56 | ||
| Fwd PE | 16.9 | ||
| P/S | 2.14 | ||
| P/FCF | 14.32 | ||
| P/OCF | 13.4 | ||
| P/B | 4.8 | ||
| P/tB | 23.81 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)12.69
EY5.39%
EPS(NY)13.93
Fwd EY5.92%
FCF(TTM)16.45
FCFY6.98%
OCF(TTM)17.58
OCFY7.46%
SpS109.95
BVpS49.06
TBVpS9.89
PEG (NY)2.14
PEG (5Y)1.82
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 | 5.07 |
F-Score5
WACC7.57%
ROIC/WACC2.41
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 Y8.69%
EPS Next 2Y7.94%
EPS Next 3Y8.1%
EPS Next 5Y8.43%
Revenue 1Y (TTM)6.21%
Revenue growth 3Y8.7%
Revenue growth 5Y8.47%
Sales Q2Q%7.66%
Revenue Next Year7.01%
Revenue Next 2Y6.2%
Revenue Next 3Y6.2%
Revenue Next 5Y5.58%
EBIT growth 1Y6.79%
EBIT growth 3Y9.6%
EBIT growth 5Y9.74%
EBIT Next Year29.86%
EBIT Next 3Y14.23%
EBIT Next 5Y9.41%
FCF growth 1Y9.21%
FCF growth 3Y0.86%
FCF growth 5Y7.4%
OCF growth 1Y10.55%
OCF growth 3Y0.58%
OCF growth 5Y6.62%