Accenture PLC

Find Ratings Reports
ACN : NYSE : Technology
$123.06 up 1.1 | 0.91%
Today's Range: 122.2 - 123.56
Avg. Daily Volume: 2344100.0
05/25/17 - 3:59 PM ET

Financial Analysis


ACCENTURE PLC's gross profit margin for the second 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 1.17 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 16.92% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)8762.188397.05
EBITDA ($mil)1326.461260.79
EBIT ($mil)1138.651088.04
Net Income ($mil)838.751326.52


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)3241.363037.48
Total Assets ($mil)20078.7718147.78
Total Debt ($mil)27.4928.65
Equity ($mil)7964.256811.66


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin30.7230.28
EBITDA Margin15.1315.01
Operating Margin13.012.96
Sales Turnover1.781.85
Return on Assets18.9720.26
Return on Equity47.8353.97
Debt Q2 FY17 Q2 FY16
Current Ratio1.291.41
Debt/Capital0.00.0
Interest Expense3.984.54
Interest Coverage286.38239.5


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)620.08623.86
Div / share0.00.0
EPS1.332.08
Book value / share12.8410.92
Institutional Own % n/a n/a
Avg Daily Volume2315306.02349281.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 30.61 for the IT Services industry and a discount compared to the S&P 500 average of 25.02. Conducting a second comparison, its price-to-book ratio of 9.37 indicates a significant premium versus the S&P 500 average of 3.00 and a premium versus the industry average of 9.31. 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 20.07 Peers 30.61   ACN 15.28 Peers 21.27

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 18.78 Peers 21.60   ACN NM Peers 1.55

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 9.37 Peers 9.31   ACN 4.34 Peers -6.96

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.

 

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 2.09 Peers 5.43   ACN 6.56 Peers 11.84

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

 

 

Latest Stock Upgrades/Downgrades