Accenture logged a -4.7% change during today's afternoon session, and is now trading at a price of $337.48 per share.
Accenture returned gains of 11.6% last year, with its stock price reaching a high of $387.51 and a low of $278.69. Over the same period, the stock underperformed the S&P 500 index by -15.2%. The company's 50-day average price was $328.3. Accenture plc, a professional services company, provides strategy and consulting, industry X, song, and technology and operation services worldwide. Based in Dublin, Ireland, the Large-Cap Consumer Discretionary company has 750,000 full time employees. Accenture has offered a 1.5% dividend yield over the last 12 months.
Generally Positive Cash Flows but an Average Current Ratio:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $40,993 | $43,215 | $44,327 | $50,533 | $61,594 | $64,112 |
| Operating Margins | 14% | 15% | 15% | 15% | 15% | 14% |
| Net Margins | 10% | 11% | 12% | 12% | 11% | 11% |
| Net Income (M) | $4,060 | $4,779 | $5,108 | $5,907 | $6,877 | $6,872 |
| Net Interest Expense (M) | $20 | $23 | $33 | $59 | $47 | $48 |
| Depreciation & Amort. (M) | $927 | $893 | $1,773 | $1,891 | $2,088 | $2,281 |
| Diluted Shares (M) | 652 | 649 | 647 | 645 | 639 | 637 |
| Earnings Per Share | $6.34 | $7.36 | $7.89 | $9.16 | $10.71 | $10.77 |
| EPS Growth | n/a | 16.09% | 7.2% | 16.1% | 16.92% | 0.56% |
| Avg. Price | $148.57 | $171.86 | $204.62 | $301.47 | $311.69 | $338.47 |
| P/E Ratio | 23.0 | 22.95 | 25.48 | 32.38 | 28.67 | 31.05 |
| Free Cash Flow (M) | $5,408 | $6,028 | $7,616 | $8,395 | $8,823 | $8,996 |
| CAPEX (M) | $619 | $599 | $599 | $580 | $718 | $528 |
| EV / EBITDA | 13.82 | 14.85 | 15.25 | 20.24 | 17.59 | 19.67 |
| Total Debt (M) | $25 | $20 | $69 | $65 | $55 | $147 |
| Net Debt / EBITDA | -0.64 | -0.8 | -1.03 | -0.59 | -0.51 | -0.63 |
| Current Ratio | 1.33 | 1.39 | 1.45 | 1.22 | 1.26 | 1.33 |
Accenture has generally positive cash flows and growing revenues and a flat capital expenditure trend. Additionally, the company's financial statements display positive EPS growth and healthy leverage levels. Furthermore, Accenture has decent operating margins with a stable trend and just enough current assets to cover current liabilities, as shown by its current ratio of 1.33.
Accenture Has Elevated P/B and P/E Ratios:
Accenture has a trailing twelve month P/E ratio of 30.1, compared to an average of 22.15 for the Consumer Discretionary sector. Based on its EPS guidance of $12.82, the company has a forward P/E ratio of 25.6. The 10.6% compound average growth rate of Accenture's historical and projected earnings per share yields a PEG ratio of 2.84. This suggests that these shares are overvalued. Furthermore, Accenture is likely overvalued compared to the book value of its equity, since its P/B ratio of 7.62 is higher than the sector average of 3.11. The company's shares are currently trading 235.1% below their Graham number. Overall, Accenture's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
Accenture Has an Average Rating of Buy:
The 23 analysts following Accenture have set target prices ranging from $295.0 to $405.0 per share, for an average of $352.4 with a buy rating. The company is trading -4.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Accenture has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 78.2% of the company's shares, and the insider ownership rate stands at 0.07%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $20,139,225,624.
