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Accenture

NYSE:ACN
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACN
NYSE
$107B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Accenture plc provides consulting, technology, and outsourcing services worldwide. The last earnings update was 47 days ago. More info.


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ACN Share Price and Events
Price Volatility
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5yr Volatility vs Market
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ACN Value

 Is Accenture undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Accenture to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Accenture.

NYSE:ACN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ACN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
IT Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.914 (1 + (1- 12.5%) (0.03%))
0.914
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.914 * 7.05%)
9.39%

Discounted Cash Flow Calculation for NYSE:ACN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Accenture is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ACN DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 4,955.04 5,093.88 5,610.41 6,456.00 7,121.00
Source Analyst x8 Analyst x9 Analyst x4 Analyst x1 Analyst x1
Present Value
Discounted (@ 9.39%)
4,529.52 4,256.56 4,285.58 4,508.00 4,545.33
Present value of next 5 years cash flows $22,125
NYSE:ACN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $7,121 × (1 + 2.95%) ÷ (9.39% – 2.95%)
$113,759
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $113,759 ÷ (1 + 9.39%)5
$72,612
NYSE:ACN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $22,125 + $72,612
$94,737
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $94,737 / 641
$147.85
NYSE:ACN Discount to Share Price
Calculation Result
Value per share (USD) From above. $147.85
Current discount Discount to share price of $168.07
= -1 x ($168.07 - $147.85) / $147.85
-13.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Accenture is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Accenture's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Accenture's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ACN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $6.36
NYSE:ACN Share Price ** NYSE (2018-07-17) in USD $168.07
United States of America IT Industry PE Ratio Median Figure of 119 Publicly-Listed IT Companies 24.71x
United States of America Market PE Ratio Median Figure of 7,808 Publicly-Listed Companies 18.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Accenture.

NYSE:ACN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ACN Share Price ÷ EPS (both in USD)

= 168.07 ÷ 6.36

26.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Accenture is overvalued based on earnings compared to the US IT industry average.
  • Accenture is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Accenture's expected growth come at a high price?
Raw Data
NYSE:ACN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
10.6%per year
United States of America IT Industry PEG Ratio Median Figure of 93 Publicly-Listed IT Companies 2.26x
United States of America Market PEG Ratio Median Figure of 5,905 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

NYSE:ACN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.41x ÷ 10.6%

2.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Accenture is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Accenture's assets?
Raw Data
NYSE:ACN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $15.29
NYSE:ACN Share Price * NYSE (2018-07-17) in USD $168.07
United States of America IT Industry PB Ratio Median Figure of 197 Publicly-Listed IT Companies 3.19x
United States of America Market PB Ratio Median Figure of 13,225 Publicly-Listed Companies 1.73x
NYSE:ACN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ACN Share Price ÷ Book Value per Share (both in USD)

= 168.07 ÷ 15.29

10.99x

* Primary Listing of Accenture.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Accenture is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Accenture's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Accenture has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ACN Future Performance

 How is Accenture expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Accenture expected to grow at an attractive rate?
  • Accenture's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Accenture's earnings growth is positive but not above the United States of America market average.
  • Accenture's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ACN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ACN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 10.6%
NYSE:ACN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts 7.1%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 8.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ACN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ACN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-08-31 55,172 7,953 6,431 1
2021-08-31 50,511 7,219 5,845 1
2020-08-31 45,202 6,493 5,134 15
2019-08-31 42,119 6,109 4,730 23
2018-08-31 39,415 5,628 4,178 25
NYSE:ACN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-05-31 38,574 5,859 3,963
2018-02-28 37,126 5,664 3,589
2017-11-30 35,858 4,895 3,564
2017-08-31 34,850 4,973 3,445
2017-05-31 34,189 5,097 3,582
2017-02-28 33,757 4,899 3,810
2016-11-30 33,385 5,108 4,297
2016-08-31 32,883 4,667 4,112
2016-05-31 32,282 4,106 3,780
2016-02-29 31,618 3,925 3,677
2015-11-30 31,165 3,862 3,041
2015-08-31 31,048 4,176 3,054

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Accenture's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
  • Accenture's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ACN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from Accenture Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ACN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-08-31 10.22 10.22 10.22 1.00
2021-08-31 9.21 9.21 9.21 1.00
2020-08-31 8.04 8.39 7.62 8.00
2019-08-31 7.32 7.74 7.00 16.00
2018-08-31 6.42 6.76 6.30 13.00
NYSE:ACN Past Financials Data
Date (Data in USD Millions) EPS *
2018-05-31 6.36
2018-02-28 5.81
2017-11-30 5.76
2017-08-31 5.56
2017-05-31 5.76
2017-02-28 6.12
2016-11-30 6.89
2016-08-31 6.58
2016-05-31 6.05
2016-02-29 5.87
2015-11-30 4.86
2015-08-31 4.87

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Accenture is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Accenture's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Accenture has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ACN Past Performance

  How has Accenture performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Accenture's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Accenture's year on year earnings growth rate has been positive over the past 5 years.
  • Accenture's 1-year earnings growth exceeds its 5-year average (10.6% vs 6.8%)
  • Accenture's earnings growth has not matched the US IT industry average in the past year (10.6% vs 15%).
Earnings and Revenue History
Accenture's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Accenture Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ACN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-05-31 38,573.62 3,962.84 6,421.52
2018-02-28 37,125.66 3,589.28 6,256.52
2017-11-30 35,857.89 3,564.33 6,056.40
2017-08-31 34,850.18 3,445.15 5,888.09
2017-05-31 34,189.46 3,581.92 5,758.32
2017-02-28 33,757.18 3,809.70 5,607.53
2016-11-30 33,385.08 4,297.47 5,523.80
2016-08-31 32,882.72 4,111.89 5,466.98
2016-05-31 32,281.99 3,780.29 5,417.44
2016-02-29 31,617.62 3,676.74 5,360.83
2015-11-30 31,165.38 3,040.95 5,298.67
2015-08-31 31,047.93 3,053.58 5,308.99
2015-05-31 30,936.77 3,016.97 5,287.45
2015-02-28 30,902.02 3,040.61 5,318.03
2014-11-30 30,539.36 3,021.18 5,377.29
2014-08-31 30,002.39 2,941.50 5,401.97
2014-05-31 29,311.72 2,911.48 5,378.33
2014-02-28 28,774.22 2,904.41 5,366.01
2013-11-30 28,701.60 3,334.91 5,376.75
2013-08-31 28,562.81 3,281.88 5,317.54
2013-05-31 28,312.04 3,189.16 5,260.03
2013-02-28 28,268.59 3,068.12 5,224.47
2012-11-30 28,007.79 2,610.24 5,161.52
2012-08-31 27,862.33 2,553.51 5,114.46
2012-05-31 27,714.09 2,587.16 5,098.81
2012-02-29 27,279.51 2,525.96 5,073.91
2011-11-30 26,535.88 2,385.05 4,992.54
2011-08-31 25,507.04 2,277.68 4,914.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Accenture made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Accenture used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Accenture's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Accenture's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Accenture has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ACN Health

 How is Accenture's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Accenture's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Accenture is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Accenture's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Accenture's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 428.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Accenture Company Filings, last reported 1 month ago.

NYSE:ACN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-05-31 10,152.74 28.80 3,932.11
2018-02-28 10,438.43 28.84 3,598.50
2017-11-30 9,893.44 25.21 3,682.39
2017-08-31 9,710.20 25.07 4,129.87
2017-05-31 8,876.66 27.67 3,384.85
2017-02-28 8,615.15 27.49 3,241.36
2016-11-30 8,034.15 27.34 4,079.57
2016-08-31 8,189.38 27.23 4,908.48
2016-05-31 7,706.56 28.87 3,500.75
2016-02-29 7,373.52 28.65 3,037.48
2015-11-30 6,405.41 27.66 3,075.92
2015-08-31 6,647.57 27.44 4,363.21
2015-05-31 6,466.23 27.22 4,028.57
2015-02-28 6,549.64 27.22 4,064.02
2014-11-30 6,016.36 26.79 4,474.81
2014-08-31 6,285.34 26.73 4,923.91
2014-05-31 6,145.30 26.67 4,051.55
2014-02-28 5,786.69 26.49 3,682.98
2013-11-30 5,416.26 25.94 4,529.79
2013-08-31 5,427.83 25.60 5,634.41
2013-05-31 5,810.06 0.00 5,940.57
2013-02-28 5,939.87 0.03 5,636.49
2012-11-30 4,993.97 0.03 5,681.24
2012-08-31 4,624.43 0.03 6,642.79
2012-05-31 4,588.09 5.43 5,630.90
2012-02-29 4,993.15 5.85 5,571.85
2011-11-30 4,219.18 6.38 5,096.54
2011-08-31 4,350.87 4.42 5,706.01
  • Accenture's level of debt (0.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 0.3% today).
  • Debt is well covered by operating cash flow (20346.3%, greater than 20% of total debt).
  • Accenture earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Accenture's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Accenture has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ACN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.58%
Current annual income from Accenture dividends. Estimated to be 1.75% next year.
If you bought $2,000 of Accenture shares you are expected to receive $32 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Accenture's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Accenture's dividend is below the markets top 25% of dividend payers in United States of America (3.98%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ACN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 74 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5856 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ACN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-08-31 4.20 1.00
2021-08-31 3.75 1.00
2020-08-31 3.20 10.00
2019-08-31 2.91 14.00
2018-08-31 2.66 15.00
NYSE:ACN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-06-28 2.660 1.607
2018-03-22 2.660 1.718
2017-09-28 2.660 1.763
2017-06-22 2.420 1.871
2017-03-23 2.420 1.993
2016-09-29 2.420 2.035
2016-06-23 2.200 1.936
2016-03-24 2.200 1.893
2015-09-24 2.200 2.128
2015-06-25 2.040 2.057
2015-03-26 2.040 2.139
2014-09-24 2.040 2.389
2014-06-26 1.860 2.318
2014-03-27 1.860 2.320
2013-10-03 1.860 2.365
2013-06-27 1.620 2.188
2013-03-28 1.620 2.039
2012-09-28 1.620 2.292
2012-06-28 1.350 2.205
2012-03-22 1.350 2.228
2011-09-27 1.350 2.369
2011-06-23 0.900 1.620
2011-03-24 0.900 1.614
2010-09-30 0.900 1.877
2010-06-24 0.750 1.903
2010-03-25 0.750 1.859
2009-10-01 0.750 1.846
2008-09-25 0.500 1.587
2008-07-18 0.420 1.061

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Accenture's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by net profit (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (2.5x coverage).
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Income/ dividend checks
We assess Accenture's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Accenture afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Accenture has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ACN Management

 What is the CEO of Accenture's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pierre Nanterme, image provided by Google.
Pierre Nanterme
COMPENSATION $19,804,110
AGE 59
TENURE AS CEO 7.5 years
CEO Bio

Mr. Pierre Nanterme has been the Chief Executive Officer of Accenture Plc since January 1, 2011 and its Chairman since February 1, 2013. Mr. Nanterme has been the Chief Executive Officer of Accenture Holdings plc (Alternate Name, Accenture SCA) since April 2015. Mr. Nanterme is responsible for managing and driving the annual business performance of the company, formulating and executing long-term strategies and interacting with clients, employees, investors and other stakeholders. He is Accenture’s primary decision- and policy-maker, setting the tone for its values, ethics and culture. He has been with Accenture for 32 years. He is a proven leader with deep expertise in developing strong client relationships. He served as the Group Chief Executive of Financial Services Operating Group at Accenture Plc from September 1, 2007 to December 31, 2010. He served as the Chief Leadership Officer of Accenture Plc from May 2006 to September 2007 and served as its Managing Director of France from November 2005 to September 2007. He was responsible for Accenture's leadership development program. In that role, he oversaw Accenture's corporate citizenship initiatives globally. In 2006, he joined Accenture’s global leadership team, where he contributed to the planning and execution of Accenture’s successful long-term business strategy and the implementation of its global operating model. He served as Managing Director of Accenture's Financial Services operating group in Europe, Africa and Latin America. Mr. Nanterme spent most of his 23-year career with Accenture in the Financial Services operating group. He served as Managing Director of Accenture's Financial Services Core Europe operating unit and served as Global Managing Director for its Insurance industry group. Other leadership positions he has held at Accenture include Managing Director of the Strategy practice in West Europe and Managing Director of its client group in France, Belgium, Luxembourg and the Netherlands. At Accenture, he has held a wide variety of leadership positions across key parts of its business. He has been a Director at Accenture plc since October 20, 2010 and Accenture Holdings plc since April 2015. He has been the President of the MEDEF Commission for Economic Affairs and Public Finance in France since 2005 and is a Member of its Executive Board. He serves on the steering board of the European Commission’s European Cloud Partnership. He is a Member of the BUSINESSEUROPE Corporate Advisory and Support Group and serves on the executive board of TransAtlantic Business Dialogue. He was awarded the insignia of Chevalier (Knight) of the Legion of Honour in France in 2010. Mr. Nanterme holds a Master of Science degree in management from ESSEC Business School (École Supérieure des Sciences Économiques et Commerciales) in Paris.

CEO Compensation
  • Pierre's compensation has been consistent with company performance over the past year.
  • Pierre's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Accenture management team in years:

4.5
Average Tenure
56
Average Age
  • The tenure for the Accenture management team is about average.
Management Team

Pierre Nanterme

TITLE
Chairman & CEO
COMPENSATION
$20M
AGE
59
TENURE
7.5 yrs

David Rowland

TITLE
Chief Financial Officer
COMPENSATION
$6M
AGE
57
TENURE
5 yrs

Gianfranco Casati

TITLE
Group Chief Executive of Growth Markets
COMPENSATION
$5M
AGE
59
TENURE
4.5 yrs

Sander van't Noordende

TITLE
Group Chief Executive of Products
COMPENSATION
$6M
AGE
55
TENURE
4.5 yrs

Julie T. Sweet

TITLE
Chief Executive of North America
COMPENSATION
$6M
AGE
51
TENURE
3.1 yrs

Jo Deblaere

TITLE
COO & Chief Executive of Europe
AGE
56
TENURE
8.8 yrs

Richard Clark

TITLE
Chief Accounting Officer & Corporate Controller
AGE
57
TENURE
4.8 yrs

Paul Daugherty

TITLE
Chief Technology & Innovation Officer
AGE
54
TENURE
1.6 yrs

Chad Jerdee

TITLE
Chief Compliance Officer & General Counsel
AGE
50
TENURE
3.1 yrs

Amy Fuller

TITLE
Chief Marketing & Communications Officer
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Accenture board of directors in years:

4.3
Average Tenure
60.5
Average Age
  • The tenure for the Accenture board of directors is about average.
Board of Directors

Pierre Nanterme

TITLE
Chairman & CEO
COMPENSATION
$20M
AGE
59
TENURE
5.4 yrs

Marge Magner

TITLE
Lead Director
COMPENSATION
$342K
AGE
69
TENURE
4.5 yrs

Gilles Christian Pélisson

TITLE
Independent Director
COMPENSATION
$300K
AGE
61
TENURE
6.3 yrs

Jaime Gómez

TITLE
Independent Director
COMPENSATION
$311K
AGE
63
TENURE
4.9 yrs

Paula Price

TITLE
Independent Director
COMPENSATION
$317K
AGE
57
TENURE
4.2 yrs

Charlie Giancarlo

TITLE
Independent Director
COMPENSATION
$300K
AGE
60
TENURE
9.6 yrs

Frank Tang

TITLE
Independent Director
COMPENSATION
$292K
AGE
50
TENURE
4.2 yrs

Arun Sarin

TITLE
Independent Director
COMPENSATION
$300K
AGE
63
TENURE
2.8 yrs

Nancy McKinstry

TITLE
Independent Director
COMPENSATION
$296K
AGE
59
TENURE
2 yrs

Herbert Hainer

TITLE
Independent Director
COMPENSATION
$516K
AGE
64
TENURE
1.7 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Accenture's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Accenture has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ACN News

External News
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Simply Wall St News

Can Accenture plc (NYSE:ACN) Continue To Outperform Its Industry?

and want to begin learning the link between Accenture plc (NYSE:ACN)’s return fundamentals and stock market performance. … Accenture plc (NYSE:ACN) outperformed the it consulting and other services industry on the basis of its ROE – producing a higher 40.87% relative to the peer average of 14.77% over the past 12 months. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

Should You Be Tempted To Sell Accenture plc (NYSE:ACN) At Its Current PE Ratio?

and want to begin learning the link between Accenture plc (NYSE:ACN)’s fundamentals and stock market performance. … Accenture plc (NYSE:ACN) is currently trading at a trailing P/E of 26.7x, which is higher than the industry average of 24.1x. … While this makes ACN appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

Is There Now An Opportunity In Accenture plc (NYSE:ACN)?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $163.48 at one point, and dropping to the lows of $147.35. … A question to answer is whether Accenture's current trading price of $159.63 reflective of the actual value of the? … Let’s take a look at Accenture’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Is Accenture plc (NYSE:ACN) Potentially Underrated?

In the case of Accenture plc (NYSE:ACN), there's. … that has been able to sustain great financial health over the past … For those interested in understanding where the figures come from and want to see the analysis,

Simply Wall St -

Is Accenture plc's (NYSE:ACN) PE Ratio A Signal To Sell For Investors?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for ACN Price per share = $155.31 Earnings per share = $5.811 ∴ Price-Earnings Ratio = $155.31 ÷ $5.811 = 26.7x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … Both scenarios would explain why ACN has a higher P/E ratio than its peers.

Simply Wall St -

Accenture plc (NYSE:ACN): What Is Driving Margins?

Margin Calculation for ACN Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 3.59 Billion ÷ 37.13 Billion = 9.67% There has been an expansion in Accenture's margin over the past five years, due to a 7.18% average growth in net income exceeding average revenue growth of 4.94%, indicating that that the previous revenue growth has been acompanied by a growing portion translated in to earnings. … ACN's most recent margin of 9.67% appears to follow this trend, which could imply improved cost efficiency as well as increasing revenue contributed to the previous earnings growth. … Using Accenture's margin expectations as a way to understand projections for the future Forward looking projections suggest margins will further the previous expansion, with an expectation of 7.01% in annual revenue growth and a forecasted 9.68% in annual net income growth.

Simply Wall St -

Accenture plc (NYSE:ACN): Dividend Is Coming In 3 Days, Should You Buy?

View our latest analysis for Accenture 5 questions to ask before buying a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it paying an annual yield above 75% of dividend payers? … Next Steps: Taking into account the dividend metrics, Accenture ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. … Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment.

Simply Wall St -

Estimating The Intrinsic Value Of Accenture plc (NYSE:ACN)

I am going to run you through how I calculated the intrinsic value of Accenture plc (NYSE:ACN) by estimating the company's future cash flows and discounting them to their present value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $4,620.58 $5,086.02 $5,661.68 $6,574.00 $7,118.00 Source Analyst x9 Analyst x9 Analyst x4 Analyst x1 Analyst x1 Present Value Discounted @ 9.29% $4,227.97 $4,258.42 $4,337.61 $4,608.62 $4,565.98 Present Value of 5-year Cash Flow (PVCF)= $21,999 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $7,118 × (1 + 2.5%) ÷ (9.3% – 2.5%) = $107,009 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $107,009 / ( 1 + 9.3%)5 = $68,643 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $90,642.

Simply Wall St -

With A -17.06% Earnings Drop, Is Accenture plc's (NYSE:ACN) A Concern?

I prefer to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … For Accenture, its most recent earnings (trailing twelve month) is US$3.56B, which compared to the prior year's figure, has plunged by -17.06%. … This may not be consistent with full year annual report figures.

Simply Wall St -

There's An Opportunity With Accenture plc (NYSE:ACN)

I'm talking about the well-proven, robust track record Accenture plc. … This consistent market outperformance illustrates a robust track record of delivering strong returns over a number of years, increasing my conviction in Accenture as an investment over the long run. … Accenture tick the boxes in terms of its scale, financial health and proven track record, but there are a few other things I have yet to consider.

Simply Wall St -

ACN Company Info

Map
Description

Accenture plc provides consulting, technology, and outsourcing services worldwide. Its Communications, Media & Technology segment provides professional services that help clients accelerate and deliver digital transformation, and enhance business results through industry-specific solutions for communications, media, and high tech industries, as well as for software platforms. The company’s Financial Services segment offers services that address profitability pressures, industry consolidation, regulatory changes, and the need to continually adapt to new digital technologies. This segment serves clients in banking, capital markets, and insurance industries. Its Health & Public Service segment provides research-based insights and offerings, including consulting services and digital solutions to help clients deliver social, economic, and health outcomes. This segment serves healthcare payers and providers, as well as 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 to develop and implement strategies, improve operations, manage complex change initiatives, and integrate digital technologies. This segment serves clients in chemicals, energy, forest products, metals and mining, and utilities and related industries. Accenture plc was founded in 1989 and is based in Dublin, Ireland.

Details
Name: Accenture plc
ACN
Exchange: NYSE
Founded: 1989
$107,415,007,963
640,748,079
Website: http://www.accenture.com
Address: Accenture plc
1 Grand Canal Square,
Grand Canal Harbour,
Dublin,
Co. Dublin, 2,
Ireland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ACN Class A Common Shares New York Stock Exchange US USD 19. Jul 2001
DB CSA Class A Common Shares Deutsche Boerse AG DE EUR 19. Jul 2001
LSE 0Y0Y Class A Common Shares London Stock Exchange GB USD 19. Jul 2001
BMV ACN N Class A Common Shares Bolsa Mexicana de Valores MX MXN 19. Jul 2001
BOVESPA ACNB34 EACH BDR REPR 1 CLS'A'USD0.0000225 Bolsa de Valores de Sao Paulo BR BRL 24. Aug 2015
Number of employees
Current staff
Staff numbers
449,000
Accenture employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/17 21:29
End of day share price update: 2018/07/17 00:00
Last estimates confirmation: 2018/07/13
Last earnings update: 2018/05/31
Last annual earnings update: 2017/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.