ACCENTURE PLC's gross profit margin for the fourth 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 1.18 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, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.00% 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 FY15||Q4 FY14|
|Net Sales ($mil)||8364.51||8267.32|
|Net Income ($mil)||737.63||701.02|
|Balance Sheet||Q4 FY15||Q4 FY14|
|Cash & Equiv. ($mil)||4363.21||4923.91|
|Total Assets ($mil)||18266.06||17930.45|
|Total Debt ($mil)||27.44||26.73|
|Profitability||Q4 FY15||Q4 FY14|
|Gross Profit Margin||29.94||29.86|
|Return on Assets||16.71||16.4|
|Return on Equity||49.78||51.31|
|Debt||Q4 FY15||Q4 FY14|
|Share Data||Q4 FY15||Q4 FY14|
|Shares outstanding (mil)||627.0||628.5|
|Div / share||0.0||0.0|
|Book value / share||9.78||9.12|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2602451.0||2186311.0|
BUY. ACCENTURE PLC's P/E ratio indicates a discount compared to an average of 27.70 for the IT Services industry and a value on par with the S&P 500 average of 19.38. For additional comparison, its price-to-book ratio of 10.06 indicates a significant premium versus the S&P 500 average of 2.58 and a significant premium versus the industry average of 7.84. 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.
|ACN 20.68||Peers 27.70||ACN 15.08||Peers 19.08|
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 17.21||Peers 20.61||ACN 2.24||Peers 3.72|
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.
Discount. 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 discount to its peers.
|ACN 10.06||Peers 7.84||ACN 5.30||Peers 15.81|
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 significant 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 1.88||Peers 5.30||ACN 3.26||Peers 6.26|
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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