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Fundamental analysis: Accenture plc (ACN)

Awarener score: 6.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Average), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

  • Business has been growing at a low pace. It's been almost average when measured against peer companies.
  • Accenture plc business trend stability is very good. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 7.5

  • ACN profit margins -on goods and services sold- are usually hardly sufficient. They stand slightly worse than rival companies.
  • Business profit on sales tends to be excellent. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually good. They remain in good shape compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually very good considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be very good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 5.0

  • Accenture plc profit -on goods and services sold- has been growing at a normal pace. It's been rather normal in relation to competitors.
  • In recent years, earnings -on operations- have been growing at a low step, which has been slightly better than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a normal pace, which compares similar to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be close to average when compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very low speed. It was slightly better than rivals.
  • In the previous years, growth on total net profit has been very low, and similar to peer companies.
  • Earnings per share have grown at a low rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 5.0

  • ACN had to pay some income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 10.0

  • Accenture plc usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
  • Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 5.6

  • ACN usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands great when measured against rival firms.
  • The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is below average when measured against industry peers.
  • In the past twelve months it paid somewhat low dividends, considering the current stock price. It came slightly better than competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved lacking compared to similar firms.
  • Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks slightly worse than comparable companies.
  • The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
  • The company uses a significant portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks below average when measured against competitors.

Balance Sheet score: 6.7

  • Accenture plc intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be almost average when measured against peer companies.
  • The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a weak position compared to similar firms.
  • A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains slightly better than rival firms.
  • Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks similar to rivals.
  • For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's in a weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is somewhat worse than similar enterprises.
  • Usually, sales are mostly on cash. It still ranks similar to peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes less than one month from the purchase to charging customers. It happens to be slightly better than peers.
  • On average pays suppliers before a month from the purchase. It ranks almost average when measured against industry peers.
  • The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's close to average when compared to similar companies.
  • Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands better than most rival firms.
  • Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks great when measured against comparable enterprises.
  • Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks close to average when compared to similar firms.
  • Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 5.2

  • Accenture plc looks expensive in relation to profits and financial position. It happens to be encouraging in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands slightly better than similar companies.
  • The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still similar to industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
  • The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks slightly better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks almost average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be similar to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.5


ACN logos

Company at a glance: Accenture plc (ACN)

Sector, industry: Technology, Information Technology Services

Market Cap: 190.81 billions

Revenues TTM: 61.59 billions

Accenture plc, a professional services company, provides strategy and consulting, interactive, industry X, song, and technology and operation services worldwide. The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, software and quality engineering, data management, intelligent automation comprises robotic process automation, natural language processing, and virtual agents, and application management services, as well as software engineering services; strategy and consulting services; data and analytics strategy, data discovery and augmentation, data management and beyond, data democratization, and industrialized solutions comprises turnkey analytics and artificial intelligence (AI) solutions; metaverse; and sustainability services. It also provides change management, HR transformation and delivery, organization strategy and design, talent strategy and development, and leadership and culture services; digital commerce; infrastructure services, including cloud infrastructure managed, cloud and data center, network, digital workplace, database platforms, service management, and cloud and infrastructure security services; data-enabled operating models; technology consulting and AI services; and technology consulting services. In addition, the company offers engineering and R&D digitization, smart connected products, product as-a-service enablement, capital projects, intelligent asset management, digital industrial workforce, and autonomous robotic systems; business process outsourcing; and services related to technology innovation. Further, it provides cloud, ecosystem, marketing, security, supply chain management, zero-based transformation, customer experience, finance consulting, mergers and acquisitions, and sustainability services. The company was founded in 1951 and is based in Dublin, Ireland.

Awarener score: 6.7

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Average), and the company's inclination to return cash to the stockholders (Good).