Accenture Plc (ACN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Accenture Plc

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CDW Corp.

International Business Machines Corp.

Block, Inc.

Why is Accenture Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 29.38%

Healthy long term growth as Net Sales has grown by an annual rate of 8.98% and Operating profit at 10.01%
Company has a low Debt to Equity ratio (avg) at times

Negative results in May 25

INTEREST(HY) At USD 132.27 MM has Grown at 511.26%

With ROE of 27.27%, it has a attractive valuation with a 7.37 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -25.69%, its profits have fallen by -0.2% ; the PEG ratio of the company is 27

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -25.69% returns

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Accenture Plc should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Accenture Plc for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Accenture Plc

-56.95%

-0.23

29.57%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.56%

EBIT Growth (5y)

10.38%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

2.04

Tax Ratio

23.05%

Dividend Payout Ratio

48.71%

Pledged Shares

Institutional Holding

84.55%

ROCE (avg)

53.41%

ROE (avg)

29.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.10

EV to EBIT

11.11

EV to EBITDA

9.62

EV to Capital Employed

4.50

EV to Sales

1.73

PEG Ratio

1.94

Dividend Yield

2.23%

ROCE (Latest)

40.50%

ROE (Latest)

27.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 13,182.1 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 42.86%

DIVIDEND PER SHARE(HY)

Highest at USD 4.7

CASH AND EQV(HY)

Highest at USD 19,577.16 MM

DEBT-EQUITY RATIO (HY)

Lowest at -5.59 %

EPS(Q)

Highest at USD 3.8

-5What is not working for the Company

ROCE(HY)

Lowest at 24.95%

INTEREST(Q)

Highest at USD 70.64 MM

Here's what is working for Accenture Plc

Operating Cash Flow

Highest at USD 13,182.1 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 4.7 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 42.86% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

EPS

Highest at USD 3.8

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 19,577.16 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -5.59 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Accenture Plc

Interest

At USD 70.64 MM has Grown at 11.14%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 70.64 MM

in the last five periods and Increased by 11.14% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)