Accenture plc Class A Ordinary Shares (Ireland)

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ACN : NYSE :
$115.35 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 0
08/30/16 - 4:02 PM ET

Financial Analysis


ACCENTURE PLC's gross profit margin for the third quarter of its fiscal year 2016 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 1.22 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.

During the same period, stockholders' equity ("net worth") has increased by 20.57% 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 FY16 Q3 FY15
Net Sales ($mil)8969.048275.07
EBITDA ($mil)0.00.0
EBIT ($mil)1305.941197.9
Net Income ($mil)897.25793.7


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)3500.754028.57
Total Assets ($mil)19191.0517308.73
Total Debt ($mil)28.8727.22
Equity ($mil)7127.335911.21


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin29.9930.51
EBITDA Margin0.00.0
Operating Margin14.5614.48
Sales Turnover1.781.9
Return on Assets19.6917.43
Return on Equity53.0351.03
Debt Q3 FY16 Q3 FY15
Current Ratio1.421.4
Debt/Capital0.00.0
Interest Expense3.714.03
Interest Coverage351.91297.25


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)622.55624.35
Div / share1.11.02
EPS1.411.24
Book value / share11.459.47
Institutional Own % n/a n/a
Avg Daily Volume2127903.02442560.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 26.80 for the IT Services industry and a discount compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 10.05 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 7.89. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ACN 19.43 Peers 26.80   ACN 17.88 Peers 20.02

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ACN 19.66 Peers 21.38   ACN 1.62 Peers 2.35

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ACN 10.05 Peers 7.89   ACN 26.22 Peers 20.43

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.

 

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 5.31   ACN 4.20 Peers 21.79

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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