Accenture PLC

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ACN : NYSE : Technology
$115.5 -0.45 | -0.39%
Today's Range: 115.27 - 116.0
Avg. Daily Volume: 2457100.0
01/19/17 - 4:00 PM ET

Financial Analysis


ACCENTURE PLC's gross profit margin for the first quarter of its fiscal year 2017 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 1.15 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.70% 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 FY17 Q1 FY16
Net Sales ($mil)9005.68465.98
EBITDA ($mil)1519.391403.14
EBIT ($mil)1331.961221.26
Net Income ($mil)1004.48818.9


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)4079.573075.92
Total Assets ($mil)20443.7417993.88
Total Debt ($mil)27.3427.66
Equity ($mil)7417.095900.43


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin32.432.42
EBITDA Margin16.8716.57
Operating Margin14.7914.43
Sales Turnover1.731.84
Return on Assets21.0216.89
Return on Equity57.9451.53
Debt Q1 FY17 Q1 FY16
Current Ratio1.241.25
Debt/Capital0.00.0
Interest Expense3.054.05
Interest Coverage436.99301.4


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)620.84625.54
Div / share1.211.1
EPS1.581.28
Book value / share11.959.43
Institutional Own % n/a n/a
Avg Daily Volume2431500.02390484.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 27.94 for the IT Services industry and a discount compared to the S&P 500 average of 25.49. Conducting a second comparison, its price-to-book ratio of 9.69 indicates a significant premium versus the S&P 500 average of 2.84 and a premium versus the industry average of 8.33. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ACN 17.15 Peers 27.94   ACN 14.22 Peers 19.79

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
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ACN 17.87 Peers 21.69   ACN NM Peers 1.66

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ACN 9.69 Peers 8.33   ACN 42.10 Peers 12.63

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ACN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ACN 2.03 Peers 5.35   ACN 6.96 Peers 16.93

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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