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

Fortinet, Inc.

Workday, Inc.

Cisco Systems, Inc.

Accenture Plc

Broadridge Financial Solutions, Inc.

Nu Holdings Ltd.

Cognizant Technology Solutions Corp.

International Business Machines Corp.

Block, Inc.

Cloudflare, Inc.

CDW Corp.

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 hold?

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

-37.4%

-0.23

29.57%

S&P 500

13.68%

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)

9.60%

EBIT Growth (5y)

10.52%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

2.09

Tax Ratio

23.05%

Dividend Payout Ratio

48.71%

Pledged Shares

Institutional Holding

83.16%

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

4.26

EV to EBIT

11.59

EV to EBITDA

10.04

EV to Capital Employed

4.72

EV to Sales

1.81

PEG Ratio

2.35

Dividend Yield

2.17%

ROCE (Latest)

40.71%

ROE (Latest)

27.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 12,116.02 MM

DIVIDEND PER SHARE(HY)

Highest at USD 4.63

DIVIDEND PAYOUT RATIO(Y)

Highest at 46.1%

RAW MATERIAL COST(Y)

Fallen by 0.16% (YoY

CASH AND EQV(HY)

Highest at USD 21,139.99 MM

NET SALES(Q)

Highest at USD 18,742.12 MM

OPERATING PROFIT(Q)

Highest at USD 3,528.86 MM

PRE-TAX PROFIT(Q)

Highest at USD 3,275.21 MM

NET PROFIT(Q)

Highest at USD 2,443.89 MM

-11What is not working for the Company

INTEREST(HY)

At USD 131.61 MM has Grown at 148.89%

ROCE(HY)

Lowest at 25.35%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.63 times

Here's what is working for Accenture Plc

Operating Cash Flow

Highest at USD 12,116.02 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 4.63 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 18,742.12 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 3,528.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 3,275.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 2,443.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Cash and Eqv

Highest at USD 21,139.99 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 46.1%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.16% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Accenture Plc

Interest

At USD 131.61 MM has Grown at 148.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debtors Turnover Ratio

Lowest at 4.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at USD 0.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income