Accenture Plc

ACN

Services-Business Services, NEC

Mkt Cap

$187.3B

PE

26.63

Debt

$182.8M

Cash

$5.121B

EV

$182.3B

FCF

$8.798B

Market Cap

$187.3B

P/E Ratio

26.63

Debt

$182.8M

Cash

$5.121B

EV

$182.3B

FCF

$8.798B

Charts data: {"Earnings":[{"time":"2014-08-30","value":2941498000},{"time":"2015-08-30","value":3053581000},{"time":"2016-08-30","value":4111892000},{"time":"2017-08-30","value":3445149000},{"time":"2018-08-30","value":4059907000},{"time":"2019-08-30","value":4779112000},{"time":"2020-08-30","value":5107839000},{"time":"2021-08-30","value":5906809000},{"time":"2022-08-30","value":6877169000},{"time":"2023-08-30","value":6871557000}],"Sales":[{"time":"2014-08-30","value":31874678000},{"time":"2015-08-30","value":32914424000},{"time":"2016-08-30","value":34797661000},{"time":"2017-08-30","value":36765478000},{"time":"2018-08-30","value":41603428000},{"time":"2019-08-30","value":43215013000},{"time":"2020-08-30","value":44327039000},{"time":"2021-08-30","value":50533389000},{"time":"2022-08-30","value":61594305000},{"time":"2023-08-30","value":64111745000}],"Net Margins":[{"time":"2014-08-30","value":0.09228322243757255},{"time":"2015-08-30","value":0.09277333852173746},{"time":"2016-08-30","value":0.11816575832496327},{"time":"2017-08-30","value":0.093706084822289},{"time":"2018-08-30","value":0.0975858768176507},{"time":"2019-08-30","value":0.11058916029945427},{"time":"2020-08-30","value":0.11523077370451024},{"time":"2021-08-30","value":0.1168892313951079},{"time":"2022-08-30","value":0.11165267633103418},{"time":"2023-08-30","value":0.10718093853162163}],"Assets":[{"time":"2014-08-30","value":17930452000},{"time":"2015-08-30","value":18266058000},{"time":"2016-08-30","value":20609004000},{"time":"2017-08-30","value":22689890000},{"time":"2018-08-30","value":24449083000},{"time":"2019-08-30","value":29789880000},{"time":"2020-08-30","value":37078593000},{"time":"2021-08-30","value":43175843000},{"time":"2022-08-30","value":47263390000},{"time":"2023-08-30","value":51245305000}],"Stockholders Equity":[{"time":"2014-08-30","value":6285337000},{"time":"2015-08-30","value":6647571000},{"time":"2016-08-30","value":8189376000},{"time":"2017-08-30","value":9710200000},{"time":"2018-08-30","value":10724588000},{"time":"2019-08-30","value":14827691000},{"time":"2020-08-30","value":17499173000},{"time":"2021-08-30","value":20097114000},{"time":"2022-08-30","value":22747088000},{"time":"2023-08-30","value":26458593000}],"ROE":[{"time":"2014-08-30","value":0.4679936811661809},{"time":"2015-08-30","value":0.4593528974718736},{"time":"2016-08-30","value":0.5021007705593198},{"time":"2017-08-30","value":0.35479691458466356},{"time":"2018-08-30","value":0.3785606496025768},{"time":"2019-08-30","value":0.3223099267444945},{"time":"2020-08-30","value":0.29189030818770695},{"time":"2021-08-30","value":0.293913295212437},{"time":"2022-08-30","value":0.3023318413328335},{"time":"2023-08-30","value":0.2597098417138054}],"ROA":[{"time":"2014-08-30","value":0.24067000653413534},{"time":"2015-08-30","value":0.2428476357624617},{"time":"2016-08-30","value":0.2726880930296292},{"time":"2017-08-30","value":0.20417062400919528},{"time":"2018-08-30","value":0.23890634262233884},{"time":"2019-08-30","value":0.2116515407245682},{"time":"2020-08-30","value":0.1835938596699179},{"time":"2021-08-30","value":0.1797559806765093},{"time":"2022-08-30","value":0.19819105231342907},{"time":"2023-08-30","value":0.17834476738893446}]}

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.

Sector

10-K
8/31/23
10-Q
5/31/23
10-Q
2/28/23
10-Q
11/30/22
10-K
8/31/22
10-Q
5/31/22
10-Q
2/28/22
10-Q
11/30/21
10-K
8/31/21
10-Q
5/31/21
10-Q
2/28/21
10-Q
11/30/20
10-K
8/31/20
10-Q
5/31/20
10-Q
2/29/20

DCF

Discounted Cash Flow Valuation of Accenture Plc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$8.798B	$9.95B	$11.16B	$12.42B	$13.72B	$15.02B	$16.31B	$17.57B	$18.76B	$19.87B	$20.86B	$208.6B
DCF		$8.652B	$8.441B	$8.169B	$7.842B	$7.467B	$7.051B	$6.604B	$6.133B	$5.647B	$5.156B	$51.56B
Value	$122.7B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 11%

Earnings Stability 93%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Net Margin	9.3%	12%	9.4%	9.8%	11%	12%	12%	11%	11%	11%
ROA	24%	27%	20%	24%	21%	18%	18%	20%	18%	18%
ROE	46%	50%	35%	38%	32%	29%	29%	30%	26%	25%

What is the average Net Margin?

The average Net Margin over the past 5 years is +10.99%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.15%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +19.84%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.99%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +30.81%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.86%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Debt FCF	0.01	0.01	0.01	0.00	0.00	0.01	0.01	0.01	0.02	0.02
Debt Equity	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.01	0.01
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.02.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.00.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	08-2016	08-2018	08-2020	08-2022	Trend
Revenue	9.1%	9%	13%	4.1%	0.97%
Net Income	7.6%	11%	10%	-0.082%	-0.29%
Stockholders Equity	18%	20%	15%	16%	0.21%
FCF	12%	11%	5.7%	2%	-1.1%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.03%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.97%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +11.1%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.29%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +19.79%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.21%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +10.72%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -1.14%.