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

-2.5%

ACN

0.3%

US IT

0.6%

US Market


1 Year Return

16.0%

ACN

23.4%

US IT

6.2%

US Market

Return vs Industry: ACN underperformed the US IT industry which returned 23.4% over the past year.

Return vs Market: ACN exceeded the US Market which returned 6.2% over the past year.


Share holder returns

ACNIndustryMarket
7 Day-2.5%0.3%0.6%
30 Day-3.3%-0.3%-1.8%
90 Day-5.7%-2.9%-2.0%
1 Year18.0%16.0%24.8%23.4%8.6%6.2%
3 Year65.5%56.4%97.1%88.8%45.7%36.3%
5 Year163.5%141.4%152.9%129.1%68.5%50.0%

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

24.7x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ACN ($184.97) is trading above our estimate of fair value ($156.04)

Significantly Undervalued: ACN is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: ACN is good value based on its PE Ratio (24.7x) compared to the IT industry average (36x).

PE vs Market: ACN is poor value based on its PE Ratio (24.7x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: ACN is poor value based on its PEG Ratio (3.3x)


Price Based on Value of Assets

PB vs Industry: ACN is overvalued based on its PB Ratio (8.2x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

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

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ACN's forecast earnings growth (7.6% per year) is above the savings rate (2.7%).

Earnings vs Market: ACN's earnings (7.6% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: ACN's revenue (6.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ACN's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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


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 8.4%.


Return on Equity

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


Return on Assets

ROA vs Industry: ACN has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: ACN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Accenture's financial position?


Financial Position Analysis

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

Long Term Liabilities: ACN's short term assets ($15.5B) exceeds 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 681.904890x debt).


Next Steps

Dividend

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

1.87%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Accenture before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years1.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ACN's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: ACN's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (42.8% 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?

2.8yrs

Average management tenure


CEO

Julie T. Sweet (52yo)

0.08yrs

Tenure

US$5,899,555

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. has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: ACN's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

61yo

Average Age

Experienced Board: ACN's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: ACN 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

Ownership Breakdown


Management Team

  • Gianfranco Casati (60yo)

    Group Chief Executive of Growth Markets

    • Tenure: 5.8yrs
    • Compensation: US$5.85m
  • Julie T. Sweet (52yo)

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: US$5.90m
  • David Rowland (58yo)

    Executive Chairman & Advisor to CEO

    • Tenure: 0.08yrs
    • Compensation: US$6.69m
  • Sander van't Noordende (56yo)

    Executive Officer

    • Tenure: 5.8yrs
    • Compensation: US$6.20m
  • Jo Deblaere (57yo)

    COO & Chief Executive of Europe

    • Tenure: 10.1yrs
  • Paul Daugherty (55yo)

    Chief Technology & Innovation Officer

    • Tenure: 2.8yrs
  • Richard Clark (58yo)

    Chief Accounting Officer & Corporate Controller

    • Tenure: 6.1yrs
  • Omar Abbosh (52yo)

    Group Chief Executive of Communications

    • Tenure: 1.1yrs
  • KC McClure (53yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Angie Park

    Managing Director & Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Arun Sarin (64yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$319.99k
  • Marge Magner (70yo)

    Lead Independent Director

    • Tenure: 0.08yrs
    • Compensation: US$362.49k
  • Julie T. Sweet (52yo)

    CEO & Director

    • Tenure: 0.08yrs
    • Compensation: US$5.90m
  • Herbert Hainer (65yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$319.96k
  • Gilles Christian Pélisson (62yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$319.96k
  • Nancy McKinstry (60yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$324.89k
  • Frank Tang (51yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$309.97k
  • Paula Price (58yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$334.99k
  • David Rowland (58yo)

    Executive Chairman & Advisor to CEO

    • Tenure: 0.08yrs
    • Compensation: US$6.69m
  • Jaime Ardila Gómez (64yo)

    Independent Director

    • Tenure: 6.2yrs
    • 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$117.852b
  • 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 Analysis2019/10/11 23:55
End of Day Share Price2019/10/11 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.

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