DB:CSA

Stock Analysis Report

Executive Summary

Accenture plc provides consulting, technology, and outsourcing services worldwide.


Snowflake Analysis

Outstanding track record with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Accenture's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CSA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

CSA

-6.7%

DE IT

-4.7%

DE Market


1 Year Return

34.2%

CSA

25.3%

DE IT

8.3%

DE Market

Return vs Industry: CSA exceeded the German IT industry which returned 32.2% over the past year.

Return vs Market: CSA exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

CSAIndustryMarket
7 Day-2.8%-6.7%-4.7%
30 Day1.0%-6.7%-4.0%
90 Day4.2%7.9%-1.4%
1 Year36.4%34.2%26.0%25.3%11.7%8.3%
3 Year74.2%65.0%144.7%138.0%11.4%1.6%
5 Year160.5%136.7%215.0%202.2%15.1%-0.7%

Price Volatility Vs. Market

How volatile is Accenture's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Accenture undervalued compared to its fair value and its price relative to the market?

6.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSA (€197.9) is trading below our estimate of fair value (€211.74)

Significantly Below Fair Value: CSA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CSA is good value based on its PE Ratio (27.8x) compared to the IT industry average (33.3x).

PE vs Market: CSA is poor value based on its PE Ratio (27.8x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: CSA is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: CSA is overvalued based on its PB Ratio (8.9x) compared to the DE IT industry average (4.8x).


Next Steps

Future Growth

How is Accenture forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSA's forecast earnings growth (8.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: CSA's earnings (8.6% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: CSA's earnings are forecast to grow, but not significantly.

Revenue vs Market: CSA's revenue (6.9% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: CSA's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSA's Return on Equity is forecast to be high in 3 years time (28.1%)


Next Steps

Past Performance

How has Accenture performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSA has high quality earnings.

Growing Profit Margin: CSA's current net profit margins (11.1%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: CSA's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: CSA's earnings growth over the past year (15.4%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: CSA earnings growth over the past year (15.4%) exceeded the IT industry 13.9%.


Return on Equity

High ROE: CSA's Return on Equity (31.6%) is considered high.


Next Steps

Financial Health

How is Accenture's financial position?


Financial Position Analysis

Short Term Liabilities: CSA's short term assets ($15.6B) exceed its short term liabilities ($11.2B).

Long Term Liabilities: CSA's short term assets ($15.6B) exceed its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: CSA's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: CSA's debt to equity ratio has reduced from 0.4% to 0.1% over the past 5 years.

Debt Coverage: CSA's debt is well covered by operating cash flow (32528.7%).

Interest Coverage: CSA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CSA has a low level of unsold assets or inventory.

Debt Coverage by Assets: CSA's debt is covered by short term assets (assets are 794.9x debt).


Next Steps

Dividend

What is Accenture's current dividend yield, its reliability and sustainability?

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSA's dividend (1.51%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: CSA's dividend (1.51%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: CSA's dividends per share have been stable in the past 10 years.

Growing Dividend: CSA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.1%), CSA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSA's dividends in 3 years are forecast to be well covered by earnings (36.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Julie T. Sweet (52yo)

0.4yrs

Tenure

US$6,265,339

Compensation

Ms. Julie T. Spellman Sweet has been Chief Executive Officer and Director of Accenture plc since September 1, 2019. She was Chief Executive Officer of North America at Accenture Plc until September 1, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Julie T.'s total compensation ($USD6.27M) is above average for companies of similar size in the German market ($USD4.38M).

Compensation vs Earnings: Julie T.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Rowland
Executive Chairman & Advisor to CEO0.4yrsUS$15.03m0.0036% $4.4m
Julie T. Sweet
CEO & Director0.4yrsUS$6.27m0.0019% $2.4m
Kathleen McClure
Chief Financial Officer1.1yrsUS$3.51m0.0038% $4.7m
Johan Deblaere
COO & Chief Executive of Europe10.4yrsno data0.0099% $12.3m
Richard Clark
Chief Accounting Officer & Corporate Controller6.4yrsno data0.0015% $1.9m
Paul Daugherty
Chief Technology & Innovation Officer3.2yrsno datano data
John Walsh
Group Chief Executive of Communications0.3yrsno data0.0032% $3.9m
Angie Park
Managing Director & Head of Investor Relations0yrsno datano data
Joel Unruch
General Counsel0.4yrsno data0.0039% $4.8m
Amy Fuller
Chief Marketing & Communications Officer2.1yrsno datano data

1.1yrs

Average Tenure

55yo

Average Age

Experienced Management: CSA's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Rowland
Executive Chairman & Advisor to CEO0.4yrsUS$15.03m0.0036% $4.4m
Julie T. Sweet
CEO & Director0.4yrsUS$6.27m0.0019% $2.4m
Arun Sarin
Independent Director4.3yrsUS$329.88k0.00098% $1.2m
Tracey Travis
Independent Director2.6yrsUS$334.93k0.00080% $991.7k
Herbert Hainer
Independent Director3.3yrsUS$329.88k0.0010% $1.3m
Gilles Christian Pélisson
Independent Lead Director0.08yrsUS$329.88k0.0025% $3.1m
Nancy McKinstry
Independent Director3.6yrsUS$339.90k0.00075% $929.7k
Kui Tang
Independent Director5.8yrsUS$320.00k0.0014% $1.7m
Paula Price
Independent Director5.8yrsUS$344.88k0.0013% $1.6m
Jaime Ardila Gómez
Independent Director6.5yrsUS$344.87k0.0020% $2.5m

3.4yrs

Average Tenure

59yo

Average Age

Experienced Board: CSA's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Accenture plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Accenture plc
  • Ticker: CSA
  • Exchange: DB
  • Founded: 1989
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$134.549b
  • Listing Market Cap: US$123.960b
  • Shares outstanding: 635.00m
  • Website: https://www.accenture.com

Number of Employees


Location

  • Accenture plc
  • 1 Grand Canal Square
  • Grand Canal Harbour
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACNNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDJul 2001
CSADB (Deutsche Boerse AG)YesClass A Common SharesDEEURJul 2001
ACN NBMV (Bolsa Mexicana de Valores)YesClass A Common SharesMXMXNJul 2001
0Y0YLSE (London Stock Exchange)YesClass A Common SharesGBUSDJul 2001
ACNB34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 CLS'A'USD0.0000225BRBRLAug 2015

Biography

Accenture plc provides consulting, technology, and outsourcing services worldwide. Its Communications, Media & Technology segment provides professional services for clients to accelerate and deliver digital transformation, develop industry-specific solutions, and enhance efficiencies and business results for communications, media, high tech, software, and platform companies. The company’s Financial Services segment offers services for profitability pressures, industry consolidation, regulatory changes, and the need to continually adapt to new digital technologies for banking, capital market, and insurance industries. Its Health & Public Service segment provides consulting services and digital solutions to help clients deliver social, economic, and health outcomes for healthcare payers and providers, government departments and agencies, public service organizations, educational institutions, and non-profit organizations. The company’s Products segment helps clients enhance their performance in distribution, sales, and marketing; in research and development, and manufacturing; and in business functions, such as finance, human resources, procurement, and supply chain. This segment serves clients in consumer goods, retail, and travel services industries; automotive, freight and logistics, industrial and electrical equipment, consumer durable and heavy equipment, and construction and infrastructure management companies; and pharmaceutical, medical technology, and biotechnology companies. Its Resources segment enables clients in chemicals, energy, forest products, metals and mining, and utilities and related industries to develop and implement strategies, improve operations, manage complex change initiatives, and integrate digital technologies. Accenture plc has alliance relationships with Amazon Web Services, Google, Microsoft, Oracle, Pegasystems, Salesforce, SAP, Workday, TradeIX, and others. Accenture plc was founded in 1989 and is based in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 21:39
End of Day Share Price2020/02/24 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.