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Accenture

NYSE:ACN
Snowflake Description

Flawless balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACN
NYSE
$123B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Accenture plc provides consulting, technology, and outsourcing services in Ireland and internationally. The last earnings update was 52 days ago. More info.


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ACN Share Price and Events
7 Day Returns
0.9%
NYSE:ACN
-0.2%
US IT
-1%
US Market
1 Year Returns
17.2%
NYSE:ACN
21.4%
US IT
-0.4%
US Market
ACN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Accenture (ACN) 0.9% -0.4% 8.2% 17.2% 70.9% 140%
US IT -0.2% -2.2% 7.1% 21.4% 90.4% 115.5%
US Market -1% -3.3% 0.8% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • ACN underperformed the IT industry which returned 21.4% over the past year.
  • ACN outperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
ACN
Industry
5yr Volatility vs Market

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 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 2.7%
Equity Risk Premium S&P Global 7.1%
IT Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.959 (1 + (1- 12.5%) (0.02%))
0.973
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.973 * 7.14%)
9.67%

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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:ACN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.67%)
2020 5,794.16 Analyst x7 5,283.04
2021 6,510.25 Analyst x4 5,412.33
2022 7,312.00 Analyst x1 5,542.64
2023 8,137.00 Analyst x1 5,623.91
2024 8,812.39 Est @ 8.3% 5,553.43
2025 9,396.57 Est @ 6.63% 5,399.21
2026 9,909.56 Est @ 5.46% 5,191.69
2027 10,369.42 Est @ 4.64% 4,953.39
2028 10,791.19 Est @ 4.07% 4,700.14
2029 11,186.81 Est @ 3.67% 4,442.64
Present value of next 10 years cash flows $52,102.42
NYSE:ACN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $11,186.81 × (1 + 2.73%) ÷ (9.67% – 2.73%)
$165,481.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $165,481.48 ÷ (1 + 9.67%)10
$65,718.00
NYSE:ACN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $52,102.42 + $65,718.00
$117,820.42
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $117,820.42 / 637.14
$184.92
NYSE:ACN Discount to Share Price
Calculation Result
Value per share (USD) From above. $184.92
Current discount Discount to share price of $193.22
= -1 x ($193.22 - $184.92) / $184.92
-4.5%

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 (2019-05-31) in USD $7.32
NYSE:ACN Share Price ** NYSE (2019-08-16) in USD $193.22
United States of America IT Industry PE Ratio Median Figure of 74 Publicly-Listed IT Companies 33.89x
United States of America Market PE Ratio Median Figure of 3,096 Publicly-Listed Companies 17.26x

* 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)

= 193.22 ÷ 7.32

26.39x

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

  • Accenture is good value 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 26.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
9%per year
United States of America IT Industry PEG Ratio Median Figure of 63 Publicly-Listed IT Companies 2.49x
United States of America Market PEG Ratio Median Figure of 2,126 Publicly-Listed Companies 1.4x

*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

= 26.39x ÷ 9%

2.92x

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 (2019-05-31) in USD $21.56
NYSE:ACN Share Price * NYSE (2019-08-16) in USD $193.22
United States of America IT Industry PB Ratio Median Figure of 125 Publicly-Listed IT Companies 4.17x
United States of America Market PB Ratio Median Figure of 5,273 Publicly-Listed Companies 1.7x
NYSE:ACN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 193.22 ÷ 21.56

8.96x

* 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 1/6, 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 22 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
9%
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 2.7%.
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 positive but not above 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 22 Analysts 9%
NYSE:ACN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 7.3%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*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 (2 months ago) See Below
Future Estimates Average of up to 22 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
2023-08-31 61,300 8,945 7,079 1
2022-08-31 54,285 7,794 6,427 2
2021-08-31 49,427 7,237 5,626 15
2020-08-31 46,279 6,816 5,162 22
2019-08-31 43,202 6,355 4,767 20
NYSE:ACN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-31 41,244 6,620 4,678
2019-02-28 40,840 6,484 4,472
2018-11-30 40,295 6,048 4,211
2018-08-31 39,573 6,027 4,060
2018-05-31 39,639 5,859 3,963
2018-02-28 37,811 5,664 3,589
2017-11-30 36,219 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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Accenture's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).
  • Accenture's revenue is expected to grow by 7.3% 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 (2 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from Accenture Company Filings, last reported 2 months 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
2023-08-31 11.35 11.35 11.35 1.00
2022-08-31 9.83 10.22 9.44 2.00
2021-08-31 8.81 9.19 8.25 12.00
2020-08-31 8.02 8.29 7.72 19.00
2019-08-31 7.35 7.45 7.32 17.00
NYSE:ACN Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-31 7.32
2019-02-28 6.99
2018-11-30 6.64
2018-08-31 6.46
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

*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 2/6, 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 (18.1% vs 8.2%)
  • Accenture's earnings growth has exceeded the US IT industry average in the past year (18.1% vs 9.8%).
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 2 months 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
2019-05-31 41,244.27 4,678.21 6,880.75
2019-02-28 40,839.57 4,471.71 6,782.54
2018-11-30 40,294.68 4,210.97 6,692.31
2018-08-31 39,573.45 4,059.91 6,601.87
2018-05-31 39,638.51 3,962.84 6,457.72
2018-02-28 37,810.55 3,589.28 6,279.99
2017-11-30 36,218.98 3,564.33 6,067.99
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

*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 has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Accenture used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Accenture's use of capital deteriorated last year versus 3 years ago (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 5/6, 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 589.4x 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 2 months ago.

NYSE:ACN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-31 14,142.96 23.99 4,772.50
2019-02-28 13,728.55 24.12 4,468.00
2018-11-30 13,055.57 24.62 4,366.91
2018-08-31 10,724.59 25.01 5,064.55
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
  • Accenture's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (0.4% vs 0.2% today).
  • Debt is well covered by operating cash flow (27592.4%, 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 6/6, 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
1.51%
Current annual income from Accenture dividends. Estimated to be 1.7% next year.
If you bought $2,000 of Accenture shares you are expected to receive $30 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 (3.84%).
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 22 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2010 Stocks 2.5%
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 3.8%

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
2023-08-31
2022-08-31 4.12 1.00
2021-08-31 3.64 9.00
2020-08-31 3.30 14.00
2019-08-31 2.95 13.00
NYSE:ACN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-27 2.920 1.521
2019-03-28 2.920 1.628
2018-10-24 2.920 1.871
2018-09-27 2.920 1.782
2018-06-28 2.660 1.600
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
2011-06-24 0.900 1.620
2011-06-23 0.900 1.597
2011-03-24 0.900 1.614
2010-10-26 0.900 1.857
2010-09-30 0.900 1.991
2010-06-25 0.750 1.901
2010-06-24 0.750 1.923
2010-03-25 0.750 1.859
2009-10-01 0.750 1.846
2008-09-25 0.500 1.587

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 earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
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
David Rowland
COMPENSATION $6,685,839
AGE 58
TENURE AS CEO 0.6 years
CEO Bio

Mr. David P. Rowland is Interim Chief Executive Officer and Director at Accenture plc since January 10, 2019. Mr. Rowland was the Chief Financial Officer of Accenture Holdings plc (Alternate Name, Accenture SCA) since April 2015. He was the Chief Financial Officer of Accenture plc since July 1, 2013 until January 10, 2019. Mr. Rowland has been with Accenture for 35 years. He has a deep knowledge of Accenture’s business and financial reporting, accounting and risk management expertise. He served as Senior Vice President of Finance at Accenture plc from October 2006 to July 2013 and was responsible for its Finance Field Operations. From July 2001 to October 2006, he served as Managing Director of Finance Operations of Accenture and held primary responsibility for the finance functions supporting its operating groups, BPO businesses and capability groups and oversaw Corporate Planning & Forecasting and Corporate Reporting & Analysis functions. Prior to 2001, he served in a number of finance leadership roles with Accenture, including Finance Director for its two largest operating groups, Communications, Media & Technology and Products. Mr. Rowland began his career with Accenture in 1983 in the Consulting group and spent several years serving clients across a variety of industries. He also played significant leadership roles in a number of company-wide initiatives, including the global implementation of the SAP enterprise software system. He serves as Chairman of Operations Council at Accenture. He was a Director of Accenture Holdings plc since April 2015. He served as a Director at Avanade Inc. He serves on the Advisory Board for the College of Management at the Georgia Institute of Technology. Throughout his professional career, he has served on several civic and charitable boards. Mr. Rowland holds a Bachelor of Science degree in Industrial Management from the Georgia Institute of Technology.

CEO Compensation
  • David's compensation has been consistent with company performance over the past year, both up more than 20%.
  • David's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

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

4.2
Average Tenure
56
Average Age
  • The tenure for the Accenture management team is about average.
Management Team

David Rowland

TITLE
Interim CEO & Director
COMPENSATION
$7M
AGE
58
TENURE
0.6 yrs

Gianfranco Casati

TITLE
Group Chief Executive of Growth Markets
COMPENSATION
$6M
AGE
60
TENURE
5.6 yrs

Sander van't Noordende

TITLE
Group Chief Executive of Products Operating Group
COMPENSATION
$6M
AGE
56
TENURE
5.6 yrs

Julie T. Sweet

TITLE
Chief Executive of North America
COMPENSATION
$6M
AGE
52
TENURE
4.2 yrs

KC McClure

TITLE
Chief Financial Officer
AGE
53
TENURE
0.6 yrs

Jo Deblaere

TITLE
COO & Chief Executive of Europe
AGE
57
TENURE
9.9 yrs

Richard Clark

TITLE
Chief Accounting Officer & Corporate Controller
AGE
58
TENURE
5.9 yrs

Paul Daugherty

TITLE
Chief Technology & Innovation Officer
AGE
55
TENURE
2.7 yrs

Omar Abbosh

TITLE
Group Chief Executive of Communications
AGE
52
TENURE
0.9 yrs

Angie Park

TITLE
Managing Director & Head of Investor Relations
Board of Directors Tenure

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

3.5
Average Tenure
61
Average Age
  • The tenure for the Accenture board of directors is about average.
Board of Directors

Marge Magner

TITLE
Non-Executive Chair of the Board
COMPENSATION
$362K
AGE
70
TENURE
0.6 yrs

David Rowland

TITLE
Interim CEO & Director
COMPENSATION
$7M
AGE
58
TENURE
0.6 yrs

Gilles Christian Pélisson

TITLE
Independent Director
COMPENSATION
$320K
AGE
62
TENURE
7.3 yrs

Jaime Ardila Gómez

TITLE
Independent Director
COMPENSATION
$335K
AGE
64
TENURE
6 yrs

Paula Price

TITLE
Independent Director
COMPENSATION
$335K
AGE
58
TENURE
5.3 yrs

Nancy McKinstry

TITLE
Independent Director
COMPENSATION
$325K
AGE
60
TENURE
3.1 yrs

Frank Tang

TITLE
Independent Director
COMPENSATION
$310K
AGE
51
TENURE
5.3 yrs

Arun Sarin

TITLE
Independent Director
COMPENSATION
$320K
AGE
64
TENURE
3.8 yrs

Herbert Hainer

TITLE
Independent Director
COMPENSATION
$320K
AGE
65
TENURE
2.8 yrs

Tracey Travis

TITLE
Independent Director
COMPENSATION
$325K
AGE
57
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • Accenture individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Jul 19 Sell Paula Price Individual 18. Jul 19 18. Jul 19 -645 $194.24 $-125,282
10. Oct 18 Sell Arun Sarin Individual 05. Oct 18 05. Oct 18 -1,170 $171.40 $-200,536
X
Management checks
We assess Accenture's management by checking for:
  1. Is the CEO's compensation unreasonable compared to 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

Simply Wall St News

Is Accenture plc's (NYSE:ACN) P/E Ratio Really That Good?

Check out our latest analysis for Accenture How Do I Calculate Accenture's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Accenture: P/E of 26.39 = $193.22 ÷ $7.32 (Based on the year to May 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Should You Think About Buying Accenture plc (NYSE:ACN) Now?

According to my valuation model, Accenture seems to be fairly priced at around 3.99% above my intrinsic value, which means if you buy Accenture today, you’d be paying a relatively fair price for it. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Is Accenture plc (NYSE:ACN) A High Quality Stock To Own?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Accenture: 34% = US$4.7b ÷ US$14b (Based on the trailing twelve months to May 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Accenture's Debt And Its 34% Return On Equity Accenture has a debt to equity ratio of just 0.0017, which is very low.

Simply Wall St -

This Insider Has Just Sold Shares In Accenture plc (NYSE:ACN)

See our latest analysis for Accenture The Last 12 Months Of Insider Transactions At Accenture Over the last year, we can see that the biggest insider sale was by the Independent Director, Arun Sarin, for US$201k worth of shares, at about US$171 per share. … NYSE:ACN Recent Insider Trading, July 25th 2019 Does Accenture Boast High Insider Ownership? … It is good to see high insider ownership, but the insider selling leaves us cautious.

Simply Wall St -

These 4 Measures Indicate That Accenture (NYSE:ACN) Is Using Debt Safely

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … NYSE:ACN Historical Debt, July 13th 2019 A Look At Accenture's Liabilities Zooming in on the latest balance sheet data, we can see that Accenture had liabilities of US$10.6b due within 12 months and liabilities of US$3.46b due beyond that. … While Accenture has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance.

Simply Wall St -

Accenture plc (NYSE:ACN): A Fundamentally Attractive Investment

For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Accenture here. … Take a look at our free research report of analyst consensus for ACN’s outlook. … The intrinsic value infographic in our free research report helps visualize whether ACN is currently mispriced by the market.

Simply Wall St -

Do Directors Own Accenture plc (NYSE:ACN) Shares?

Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … View our latest analysis for Accenture NYSE:ACN Ownership Summary, June 20th 2019 What Does The Institutional Ownership Tell Us About Accenture? … Insider Ownership Of Accenture The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Did Accenture plc (NYSE:ACN) Insiders Sell Shares?

While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. … It doesn't really mean much that no insider has traded Accenture shares in the last quarter. … It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Accenture insiders selling.

Simply Wall St -

Want To Invest In Accenture plc (NYSE:ACN)? Here's How It Performed Lately

In this article, I will take a look at Accenture plc's (NYSE:ACN) most recent earnings update (28 February 2019) and compare these latest figures against its performance over the past few years, along with how the rest of ACN's industry performed. … View our latest analysis for Accenture How Did ACN's Recent Performance Stack Up Against Its Past? … I suggest you continue to research Accenture to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for ACN’s future growth?

Simply Wall St -

Accenture plc (NYSE:ACN) Earns Among The Best Returns In Its Industry

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Accenture: 0.35 = US$6.1b ÷ (US$27b - US$10b) (Based on the trailing twelve months to February 2019.) Therefore, Accenture has an ROCE of 35%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

ACN Company Info

Description

Accenture plc provides consulting, technology, and outsourcing services in Ireland and internationally. 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, 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 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 a strategic alliance with Quantexa and nCino, Inc.; and a collaboration agreement with Faurecia and Affectiva. Accenture plc was founded in 1989 and is based in Dublin, Ireland.

Details
Name: Accenture plc
ACN
Exchange: NYSE
Founded: 1989
$123,108,420,152
637,141,187
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
482,000
Accenture employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 23:45
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/16
Last earnings filing: 2019/06/27
Last earnings reported: 2019/05/31
Last annual earnings reported: 2018/08/31


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.