ACCENTURE PLC's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ACCENTURE PLC has average liquidity. Currently, the Quick Ratio is 1.30 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 15.56% 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||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||8267.32||7524.99|
|Net Income ($mil)||701.02||671.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||4923.91||5634.41|
|Total Assets ($mil)||17930.45||16867.05|
|Total Debt ($mil)||26.73||25.6|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||29.86||31.22|
|Return on Assets||16.4||19.45|
|Return on Equity||51.31||66.16|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||628.0||636.04|
|Div / share||0.0||0.0|
|Book value / share||9.13||7.8|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2505544.0||2787853.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 26.28 for the IT Services industry and a discount compared to the S&P 500 average of 19.49. Conducting a second comparison, its price-to-book ratio of 8.65 indicates a significant premium versus the S&P 500 average of 2.70 and a premium versus the industry average of 8.30. The price-to-sales ratio is below the S&P 500 average and is well 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 17.47||Peers 26.28||ACN 14.23||Peers 15.96|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
ACN is trading at a significant 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 14.99||Peers 18.27||ACN 2.39||Peers 1.26|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
ACN is trading at a discount to 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 8.65||Peers 8.30||ACN -8.32||Peers 19.05|
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
ACN is trading at a valuation on par with 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 1.56||Peers 4.38||ACN 4.87||Peers 7.57|
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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