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 quite expensive at the moment. It does show a decent growth rate. These ratings would make ACN suitable 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.
In the past 5 years ACN always reported a positive cash flow from operatings.
1.2 Ratios
ACN's Return On Assets of 13.70% is amongst the best of the industry. ACN outperforms 92.86% of its industry peers.
Looking at the Return On Equity, with a value of 25.92%, ACN belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.61%, ACN belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
ACN had an Average Return On Invested Capital over the past 3 years of 22.63%. This is significantly above the industry average of 13.14%.
| 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 78.57% of the companies in the same industry.
In the last couple of years the Profit Margin of ACN has grown nicely.
ACN has a better Operating Margin (15.42%) than 86.90% of its industry peers.
ACN's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 32.58%, ACN perfoms like the industry average, outperforming 44.05% 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 | 15.42% | ||
| 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.
ACN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.63 indicates that ACN is not in any danger for bankruptcy at the moment.
ACN has a Altman-Z score of 7.63. This is amongst the best in the industry. ACN outperforms 88.10% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.02, ACN belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that ACN is not too dependend on debt financing.
ACN has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. ACN outperforms 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 7.63 |
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.
Looking at the Current ratio, with a value of 1.26, ACN is in line with its industry, 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 comparable to the rest of the industry.
The current and quick ratio evaluation for ACN is rather negative, while it does have 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
The Earnings Per Share has been growing slightly by 5.57% 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 11.60% on average per year.
Looking at the last year, ACN shows a small growth in Revenue. The Revenue has grown by 2.26% in the last year.
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
The Earnings Per Share is expected to grow by 11.09% on average over the next years. This is quite good.
ACN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.73% yearly.
EPS Next Y4.73%
EPS Next 2Y6.55%
EPS Next 3Y8.07%
EPS Next 5Y11.09%
Revenue Next Year1.64%
Revenue Next 2Y4.22%
Revenue Next 3Y5.54%
Revenue Next 5Y7.73%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.44, which means the current valuation is very expensive for ACN.
ACN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ACN to the average of the S&P500 Index (27.73), we can say ACN is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.92, the valuation of ACN can be described as rather expensive.
ACN's Price/Forward Earnings ratio is in line with the industry average.
ACN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.44 | ||
| Fwd PE | 22.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ACN is valued a bit cheaper than the industry average as 65.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.14 | ||
| EV/EBITDA | 16.22 |
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)5.38
PEG (5Y)2.19
EPS Next 2Y6.55%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.72%, 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 2.85. ACN pays more dividend than 86.90% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, ACN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
The dividend of ACN is nicely growing with an annual growth rate of 11.33%!
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
ACN pays out 43.16% 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.
DP43.16%
EPS Next 2Y6.55%
EPS Next 3Y8.07%
ACCENTURE PLC-CL A
NYSE:ACN (5/3/2024, 7:04:00 PM)
After market: 307.24 +3.53 (+1.16%)303.71
+3.37 (+1.12%)
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 Cap203.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 25.44 | ||
| Fwd PE | 22.92 | ||
| 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)5.38
PEG (5Y)2.19
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