NYSE:ACN

Stock Analysis Report

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Executive Summary

Accenture plc, a professional services company, provides strategy and consulting, interactive, and technology and operations services worldwide. More Details


Snowflake Analysis

Flawless balance sheet with solid track record 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: ACN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ACN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.1%

ACN

-0.2%

US IT

0.7%

US Market


1 Year Return

25.1%

ACN

30.1%

US IT

22.2%

US Market

Return vs Industry: ACN underperformed the US IT industry which returned 30.7% over the past year.

Return vs Market: ACN exceeded the US Market which returned 22.7% over the past year.


Shareholder returns

ACNIndustryMarket
7 Day0.1%-0.2%0.7%
30 Day13.4%15.2%11.8%
90 Day4.5%5.6%8.6%
1 Year27.1%25.1%31.4%30.1%25.0%22.2%
3 Year76.4%68.4%101.4%93.5%49.4%39.5%
5 Year153.7%132.7%182.1%162.5%100.2%78.1%

Long-Term 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

Valuation

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

31.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ACN ($249.66) is trading above our estimate of fair value ($169.94)

Significantly Below Fair Value: ACN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ACN is good value based on its PE Ratio (31.1x) compared to the US IT industry average (36.1x).

PE vs Market: ACN is poor value based on its PE Ratio (31.1x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: ACN is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: ACN is overvalued based on its PB Ratio (9.3x) compared to the US IT industry average (4x).


Next Steps

Future Growth

How is Accenture forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACN's forecast earnings growth (5.7% per year) is above the savings rate (2.2%).

Earnings vs Market: ACN's earnings (5.7% per year) are forecast to grow slower than the US market (21.8% per year).

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

Revenue vs Market: ACN's revenue (6.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ACN's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACN's Return on Equity is forecast to be high in 3 years time (25.8%)


Next Steps

Past Performance

How has Accenture performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACN has high quality earnings.

Growing Profit Margin: ACN's current net profit margins (11.5%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: ACN's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: ACN's earnings growth over the past year (6.9%) is below its 5-year average (8.6% per year).

Earnings vs Industry: ACN earnings growth over the past year (6.9%) exceeded the IT industry 3.2%.


Return on Equity

High ROE: ACN's Return on Equity (29.6%) is considered high.


Next Steps

Financial Health

How is Accenture's financial position?


Financial Position Analysis

Short Term Liabilities: ACN's short term assets ($17.7B) exceed its short term liabilities ($12.7B).

Long Term Liabilities: ACN's short term assets ($17.7B) exceed its long term liabilities ($6.9B).


Debt to Equity History and Analysis

Debt Level: ACN's debt to equity ratio (0.4%) is considered satisfactory.

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

Debt Coverage: ACN's debt is well covered by operating cash flow (13277.7%).

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


Balance Sheet


Next Steps

Dividend

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

1.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACN's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: ACN's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (4.14%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.9%), ACN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACN's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Julie T. Sweet (53 yo)

1.25yrs

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 From June 2015 to Septe...


CEO Compensation Analysis

Compensation vs Market: Julie T.'s total compensation ($USD6.27M) is below average for companies of similar size in the US market ($USD10.98M).

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 CEO1.25yrsUS$15.03m0.0010%
$ 1.6m
Julie T. Sweet
CEO & Director1.25yrsUS$6.27m0.0017%
$ 2.7m
Kathleen McClure
Chief Financial Officer1.92yrsUS$3.51m0.0029%
$ 4.6m
Johan Deblaere
Chief Operating Officer11.25yrsno data0.0094%
$ 14.9m
Richard Clark
Chief Accounting Officer & Corporate Controller7.25yrsno data0.0017%
$ 2.7m
Paul Daugherty
Group Chief Executive of Technology & CTO0.92yrno datano data
Angie Park
Managing Director & Head of Investor Relationsno datano datano data
Joel Unruch
General Counsel & Corporate Secretary1.25yrsno data0.0037%
$ 5.9m
Amy Fuller
Chief Marketing & Communications Officer2.92yrsno datano data
John Walsh
Chief Strategic Accounts & Global Sales Officer0.92yrno data0.0032%
$ 5.0m
Ellyn Shook
Chief Leadership Officer & Chief Human Resources Officer6.75yrsno data0.0029%
$ 4.6m
Diego Visconti
International Chairman of Strategic Countriesno dataUS$4.07mno data

1.6yrs

Average Tenure

57yo

Average Age

Experienced Management: ACN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Rowland
Executive Chairman & Advisor to CEO1.25yrsUS$15.03m0.0010%
$ 1.6m
Julie T. Sweet
CEO & Director1.25yrsUS$6.27m0.0017%
$ 2.7m
Arun Sarin
Independent Director5.17yrsUS$329.88k0.00099%
$ 1.6m
Tracey Travis
Independent Director3.42yrsUS$334.93k0.00080%
$ 1.3m
Herbert Hainer
Independent Director4.08yrsUS$329.88k0.0010%
$ 1.6m
Gilles Christian Pélisson
Independent Lead Director0.92yrUS$329.88k0.0025%
$ 4.0m
Nancy McKinstry
Independent Director4.42yrsUS$339.90k0.00075%
$ 1.2m
Kui Tang
Independent Director6.58yrsUS$320.00k0.0014%
$ 2.2m
Paula Price
Independent Director6.58yrsUS$344.88k0.0013%
$ 2.0m
Jaime Gómez
Independent Director7.33yrsUS$344.87k0.0020%
$ 3.2m
Venkata S. Renduchintala
Independent Director2.67yrsUS$324.94k0.00053%
$ 838.3k
Robert Easton
Chairman of Accenture ANZno datano datano data

4.1yrs

Average Tenure

59yo

Average Age

Experienced Board: ACN's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ACN insiders have only sold shares 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: ACN
  • Exchange: NYSE
  • Founded: 2009
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$158.176b
  • Shares outstanding: 633.57m
  • 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, a professional services company, provides strategy and consulting, interactive, and technology and operations services worldwide. The company also provides outsourcing services. It serves co...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 00:23
End of Day Share Price2020/12/02 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


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.