NYSE:ACN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

0.7%

NYSE:ACN

2.5%

US IT

0.2%

US Market


1 Year Return

18.0%

NYSE:ACN

21.7%

US IT

-0.7%

US Market

ACN underperformed the IT industry which returned 22.4% over the past year.

ACN outperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

ACNIndustryMarket
7 Day0.7%2.5%0.2%
30 Day0.1%-1.6%-2.7%
90 Day7.7%8.1%1.6%
1 Year20.0%18.0%23.0%21.7%1.6%-0.7%
3 Year77.9%68.2%99.6%91.1%40.0%30.9%
5 Year163.2%137.9%140.4%116.0%53.8%36.8%

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

26.53x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Accenture's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Accenture's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Accenture is poor value based on expected growth next year.


Price Based on Value of Assets

Accenture is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Accenture expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Accenture's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

Accenture's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).

Accenture's revenue growth is positive but not above the United States of America market average.

Accenture's earnings growth is positive but not above the United States of America market average.

Accenture's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Accenture is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Accenture performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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%).


Return on Equity

Accenture has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Accenture used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Accenture's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Accenture's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 589.4x debt.


Next Steps

Dividend

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

1.69%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Accenture's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Accenture's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

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

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).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

David Rowland (58yo)

0.6yrs

Tenure

US$6,685,839

Compensation

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, Accentur ...


CEO Compensation Analysis

David's remuneration is lower than average for companies of similar size in United States of America.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

56yo

Average Age

The tenure for the Accenture management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

61yo

Average Age

The tenure for the Accenture board of directors is about average.


Insider Trading

Accenture individual insiders have only sold shares 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
SellUS$200,53610 Oct 18
Arun Sarin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,170
Max PriceUS$171.40

Ownership Breakdown


Management Team

  • Gianfranco Casati (60yo)

    Group Chief Executive of Growth Markets

    • Tenure: 5.6yrs
    • Compensation: US$5.85m
  • Julie T. Sweet (52yo)

    Chief Executive of North America

    • Tenure: 4.2yrs
    • Compensation: US$5.90m
  • David Rowland (58yo)

    Interim CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$6.69m
  • Sander van't Noordende (56yo)

    Group Chief Executive of Products Operating Group

    • Tenure: 5.6yrs
    • Compensation: US$6.20m
  • Jo Deblaere (57yo)

    COO & Chief Executive of Europe

    • Tenure: 9.9yrs
  • Paul Daugherty (55yo)

    Chief Technology & Innovation Officer

    • Tenure: 2.7yrs
  • Richard Clark (58yo)

    Chief Accounting Officer & Corporate Controller

    • Tenure: 5.9yrs
  • Omar Abbosh (52yo)

    Group Chief Executive of Communications

    • Tenure: 0.9yrs
  • KC McClure (53yo)

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Angie Park

    Managing Director & Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Arun Sarin (64yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$319.99k
  • Tracey Travis (57yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$324.89k
  • Marge Magner (70yo)

    Non-Executive Chair of the Board

    • Tenure: 0.6yrs
    • Compensation: US$362.49k
  • Herbert Hainer (65yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$319.96k
  • Gilles Christian Pélisson (62yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$319.96k
  • Nancy McKinstry (60yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$324.89k
  • Frank Tang (51yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$309.97k
  • Paula Price (58yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$334.99k
  • David Rowland (58yo)

    Interim CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$6.69m
  • Jaime Ardila Gómez (64yo)

    Independent Director

    • Tenure: 6.0yrs
    • Compensation: US$334.99k

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$123.733b
  • Shares outstanding: 637.14m
  • 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 Analysis2019/08/20 23:55
End of Day Share Price2019/08/20 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.