ACCENTURE PLC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ACCENTURE PLC has average liquidity. Currently, the Quick Ratio is 1.24 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 11.23% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||8343.26||7799.7|
|Net Income ($mil)||831.53||751.85|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||4474.81||4529.79|
|Total Assets ($mil)||17630.03||16515.94|
|Total Debt ($mil)||26.79||25.94|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||30.44||31.4|
|Return on Assets||17.13||20.19|
|Return on Equity||55.11||67.67|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||627.0||633.65|
|Div / share||1.02||0.93|
|Book value / share||8.74||7.78|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3103223.0||2449513.0|
BUY. ACCENTURE PLC's P/E ratio indicates a discount compared to an average of 23.82 for the IT Services industry and a value on par with the S&P 500 average of 19.99. Conducting a second comparison, its price-to-book ratio of 10.26 indicates a significant premium versus the S&P 500 average of 2.76 and a premium versus the industry average of 8.98. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. The valuation analysis reveals that, ACCENTURE PLC seems to be trading at a discount to investment alternatives within the industry.
|ACN 19.26||Peers 23.82||ACN 13.49||Peers 17.50|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
ACN is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
ACN is trading at a discount to its peers.
|ACN 17.18||Peers 20.50||ACN 3.17||Peers 1.64|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
ACN is trading at a valuation on par with its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
ACN trades at a significant premium to its peers.
|ACN 10.26||Peers 8.98||ACN -7.18||Peers 20.79|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
ACN is trading at a premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, ACN is expected to significantly trail its peers on the basis of its earnings growth rate.
|ACN 1.74||Peers 5.21||ACN 6.19||Peers 8.61|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
ACN is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
ACN significantly trails its peers on the basis of sales growth
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