NYSE:ACN

Stock Analysis Report

Executive Summary

Accenture plc provides consulting, technology, and outsourcing services in Ireland and internationally.

Rewards

PE ratio (27.2x) is below the IT industry average (30.6x)

Earnings are forecast to grow 7.62% per year

Earnings grew by 17.7% over the past year

Pays a high and reliable dividend of 1.57%

Risk Analysis

No risks detected for ACN from our risk checks.


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: ACN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

ACN

0.3%

US IT

1.3%

US Market


1 Year Return

27.3%

ACN

33.1%

US IT

19.4%

US Market

Return vs Industry: ACN underperformed the US IT industry which returned 33.1% over the past year.

Return vs Market: ACN exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

ACNIndustryMarket
7 Day2.0%0.3%1.3%
30 Day6.5%2.7%2.6%
90 Day4.8%2.9%5.0%
1 Year28.9%27.3%34.5%33.1%22.0%19.4%
3 Year72.2%63.7%97.9%89.4%46.8%37.3%
5 Year149.1%127.2%134.2%113.4%66.3%48.0%

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?

27.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ACN ($203.92) is trading above our estimate of fair value ($179.57)

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 (27.2x) compared to the IT industry average (30.6x).

PE vs Market: ACN is poor value based on its PE Ratio (27.2x) compared to the US market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: ACN is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: ACN is overvalued based on its PB Ratio (9x) compared to the US IT industry average (3.8x).


Next Steps

Future Growth

How is Accenture forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACN's forecast earnings growth (7.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ACN's earnings (7.6% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: ACN's revenue (6.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ACN's revenue (6.6% 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 (35.2%)


Next Steps

Past Performance

How has Accenture performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACN has high quality earnings.

Growing Profit Margin: ACN's current net profit margins (11.1%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: ACN's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: ACN's earnings growth over the past year (17.7%) exceeds its 5-year average (8.5% per year).

Earnings vs Industry: ACN earnings growth over the past year (17.7%) exceeded the IT industry 17%.


Return on Equity

High ROE: ACN's Return on Equity (32.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Accenture's financial position?


Financial Position Analysis

Short Term Liabilities: ACN's short term assets ($15.5B) exceed its short term liabilities ($11.1B).

Long Term Liabilities: ACN's short term assets ($15.5B) exceed its long term liabilities ($3.9B).


Debt to Equity History and Analysis

Debt Level: ACN's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: ACN's debt to equity ratio has reduced from 0.4% to 0.2% over the past 5 years.

Debt Coverage: ACN's debt is well covered by operating cash flow (29247.7%).

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


Balance Sheet

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

Debt Coverage by Assets: ACN's debt is covered by short term assets (assets are 681.9x debt).


Next Steps

Dividend

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

1.57%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: ACN's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: ACN's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.68%).


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 (30.2%), 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 (42.9% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Julie T. Sweet (52yo)

0.3yrs

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 ($USD6.27M) is below average for companies of similar size in the US market ($USD10.94M).

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


Management Age and Tenure

0.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: ACN's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: ACN's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$125,28218 Jul 19
Paula Price
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares645
Max PriceUS$194.24

Ownership Breakdown

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


Management Team

  • Julie T. Sweet (52yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$6.27m
  • Joel Unruch (41yo)

    General Counsel

    • Tenure: 0.3yrs
  • David Rowland (58yo)

    Executive Chairman & Advisor to CEO

    • Tenure: 0.3yrs
    • Compensation: US$15.03m
  • Sander van't Noordende (56yo)

    Executive Officer

    • Tenure: 5.9yrs
    • Compensation: US$6.36m
  • Jo Deblaere (57yo)

    COO & Chief Executive of Europe

    • Tenure: 10.3yrs
  • Paul Daugherty (55yo)

    Chief Technology & Innovation Officer

    • Tenure: 3yrs
  • Richard Clark (58yo)

    Chief Accounting Officer & Corporate Controller

    • Tenure: 6.3yrs
  • KC McClure (54yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: US$3.51m
  • Angie Park

    Managing Director & Head of Investor Relations

    • Tenure: 0yrs
  • John Walsh

    Group Chief Executive of Communications

    • Tenure: 0.08yrs

Board Members

  • Arun Sarin (64yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$329.88k
  • Marge Magner (70yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$572.38k
  • Julie T. Sweet (52yo)

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: US$6.27m
  • Herbert Hainer (65yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$329.88k
  • Gilles Christian Pélisson (62yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$329.88k
  • Nancy McKinstry (60yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$339.90k
  • Frank Tang (51yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$320.00k
  • Paula Price (58yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$344.88k
  • David Rowland (58yo)

    Executive Chairman & Advisor to CEO

    • Tenure: 0.3yrs
    • Compensation: US$15.03m
  • Jaime Ardila Gómez (64yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$344.87k

Company Information

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


Key Information

  • Name: Accenture plc
  • Ticker: ACN
  • Exchange: NYSE
  • Founded: 1989
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$129.498b
  • Shares outstanding: 635.04m
  • 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 in Ireland and internationally. Its Communications, Media & Technology segment provides professional services for clients to accelera ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 23:49
End of Day Share Price2019/12/12 00:00
Earnings2019/08/31
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.