1.63 | 2.02%
ACCENTURE PLC's gross profit margin for the second quarter of its fiscal year 2013 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 1.44 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.
During the same period, stockholders' equity ("net worth") has increased by 22.01% 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.
| Income Statement | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Net Sales ($mil) | 7493.32 | 7259.83 |
| EBITDA ($mil) | 0.0 | 0.0 |
| EBIT ($mil) | 940.77 | 889.71 |
| Net Income ($mil) | 1101.8 | 643.92 |
| Balance Sheet | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 5636.49 | 5571.85 |
| Total Assets ($mil) | 16358.73 | 15808.1 |
| Total Debt ($mil) | 0.03 | 5.85 |
| Equity ($mil) | 5452.35 | 4468.55 |
| Profitability | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Gross Profit Margin | 29.76 | 29.15 |
| EBITDA Margin | 0.0 | 0.0 |
| Operating Margin | 12.55 | 12.26 |
| Sales Turnover | 1.84 | 1.85 |
| Return on Assets | 18.75 | 15.97 |
| Return on Equity | 56.27 | 56.52 |
| Debt | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Current Ratio | 1.63 | 1.53 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 3.64 | 4.22 |
| Interest Coverage | 258.38 | 210.83 |
| Share Data | Q2 FY13 | Q2 FY12 |
|---|---|---|
| Shares outstanding (mil) | 649.78 | 644.09 |
| Div / share | 0.0 | 0.0 |
| EPS | 1.65 | 0.97 |
| Book value / share | 8.39 | 6.94 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2733522.0 | 2933663.0 |
BUY. ACCENTURE PLC's P/E ratio indicates a discount compared to an average of 24.97 for the IT Services industry and a value on par with the S&P 500 average of 18.47. For additional comparison, its price-to-book ratio of 9.47 indicates a significant premium versus the S&P 500 average of 2.36 and a significant premium versus the industry average of 7.78. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, ACCENTURE PLC seems to be trading at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ACN 17.21 | Peers 24.97 | ACN 14.56 | Peers 23.82 | |||||||||||||||||||||
|
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 significant discount to its peers. |
|||||||||||||||||||||||
| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| ACN 16.97 | Peers 17.03 | ACN 1.50 | Peers 1.53 | |||||||||||||||||||||
|
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. |
Average. 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 valuation on par to its peers. |
|||||||||||||||||||||||
| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| ACN 9.47 | Peers 7.78 | ACN 22.54 | Peers 21.32 | |||||||||||||||||||||
|
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. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ACN is expected to keep pace with its peers on the basis of earnings growth. |
|||||||||||||||||||||||
| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| ACN 1.72 | Peers 4.12 | ACN 2.95 | Peers 6.95 | |||||||||||||||||||||
|
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 |
|||||||||||||||||||||||
