Accenture PLC

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ACN : NYSE : Technology
$128.85 up 0.31 | 0.24%
Today's Range: 128.01 - 128.955
Avg. Daily Volume: 2083400.0
07/21/17 - 4:01 PM ET

Financial Analysis


ACCENTURE PLC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. ACCENTURE PLC has average liquidity. Currently, the Quick Ratio is 1.11 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 14.59% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)9356.798969.04
EBITDA ($mil)1569.711486.95
EBIT ($mil)1375.231305.94
Net Income ($mil)669.47897.25


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)3384.853500.75
Total Assets ($mil)21135.5919191.05
Total Debt ($mil)27.6728.87
Equity ($mil)8167.367127.33


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin33.1732.01
EBITDA Margin16.7716.57
Operating Margin14.714.56
Sales Turnover1.711.78
Return on Assets16.9419.69
Return on Equity43.8553.03
Debt Q3 FY17 Q3 FY16
Current Ratio1.221.42
Debt/Capital0.00.0
Interest Expense3.613.71
Interest Coverage380.63351.91


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)617.91622.55
Div / share1.211.1
EPS1.051.41
Book value / share13.2211.45
Institutional Own % n/a n/a
Avg Daily Volume2118488.02446408.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 32.58 for the IT Services industry and a discount compared to the S&P 500 average of 24.41. For additional comparison, its price-to-book ratio of 9.51 indicates a significant premium versus the S&P 500 average of 3.04 and a discount versus the industry average of 9.98. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, ACCENTURE PLC proves to trade 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 22.29 Peers 32.58   ACN 15.28 Peers 22.09

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 19.54 Peers 22.62   ACN NM Peers 1.78

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.

 

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 9.51 Peers 9.98   ACN -4.73 Peers -0.89

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ACN 2.15 Peers 5.81   ACN 5.53 Peers 11.47

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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