Accenture Plc

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ACN : NYSE : Technology Services
$160.63 -0.26 | -0.16%
Today's Range: 159.37 - 161.5
Avg. Daily Volume: 2182700.0
03/19/18 - 3:59 PM ET

Financial Analysis

ACCENTURE PLC's gross profit margin for the first quarter of its fiscal year 2018 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 1.13 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 22.71% 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 FY18 Q1 FY17
Net Sales ($mil)10054.499005.6
EBITDA ($mil)1718.511519.39
EBIT ($mil)1485.881331.96
Net Income ($mil)1123.661004.48

Balance Sheet Q1 FY18 Q1 FY17
Cash & Equiv. ($mil)3682.394079.57
Total Assets ($mil)22974.1520443.74
Total Debt ($mil)25.2127.34
Equity ($mil)9102.137417.09

Profitability Q1 FY18 Q1 FY17
Gross Profit Margin32.6732.4
EBITDA Margin17.0916.87
Operating Margin14.7814.79
Sales Turnover1.651.73
Return on Assets15.5121.02
Return on Equity39.1557.94
Debt Q1 FY18 Q1 FY17
Current Ratio1.251.24
Interest Expense4.713.05
Interest Coverage315.67436.99

Share Data Q1 FY18 Q1 FY17
Shares outstanding (mil)615.36620.84
Div / share1.331.21
Book value / share14.7911.95
Institutional Own % n/a n/a
Avg Daily Volume2229751.01934786.0


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 72.18 for the IT Services industry and a premium compared to the S&P 500 average of 25.66. For additional comparison, its price-to-book ratio of 11.01 indicates a significant premium versus the S&P 500 average of 3.28 and a discount versus the industry average of 11.94. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, ACCENTURE PLC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ACN 28.82 Peers 72.18   ACN 20.44 Peers 25.63

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ACN 22.48 Peers 25.11   ACN 1.29 Peers 0.99

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.


Premium. 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 premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ACN 11.01 Peers 11.94   ACN -16.30 Peers 17.01

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ACN 2.65 Peers 7.11   ACN 7.00 Peers 16.14

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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