Accenture plc - Class A
Exchange: NYSESector: TechnologyIndustry: Information Technology Services
Accenture is a leading solutions and services company that helps the world's leading enterprises reinvent by building their digital core and unleashing the power of AI to create value at speed across the enterprise, bringing together the talent of our approximately 786,000 people, our proprietary assets and platforms, and deep ecosystem relationships. Our strategy is to be the reinvention partner of choice for our clients and to be the most client-focused, AI-enabled, great place to work in the world. Through our Reinvention Services we bring together our capabilities across strategy, consulting, technology, operations, Song and Industry X with our deep industry expertise to create and deliver solutions and services for our clients. Our purpose is to deliver on the promise of technology and human ingenuity, and we measure our success by the 360° value we create for all our stakeholders.
Current Price
$179.22
+1.37%GoodMoat Value
$388.27
116.6% undervaluedProfile
Valuation (TTM)
Market Cap$118.42B
P/E15.48
EV$131.10B
P/B3.80
Shares Out660.73M
P/Sales1.64
Revenue$72.11B
EV/EBITDA8.99
Accenture plc - Class A (ACN) Stock Analysis
GoodMoat Analysis
Accenture is a global IT services and consulting leader with a durable competitive moat, trading at a price that suggests a significant margin of safety relative to its estimated intrinsic value. Its strong financial quality and moderate growth profile warrant a closer look from a value investor.
Read full analysis
Accenture plc is a global leader in IT services and consulting, providing strategy, digital, technology, and operations services to a vast, diversified client base. Applying the GoodMoat framework, the company demonstrates a potentially durable moat, scoring well on criteria like Switching Costs (mission-critical services with high migration costs), Brand & Culture (significant global brand recognition), and Strategic Partnerships (long-term, mega-contracts with Fortune 500 clients). Its scale and deep industry expertise create significant barriers to entry. Financially, Accenture shows high quality with an ROE of 24.5% (exceeding the 15-20% threshold), a strong FCF Yield of 8.6%, and a conservative Debt/Equity ratio of 0.26. Revenue growth is moderate at 6.0% YoY. The valuation appears favourable. The current P/E of 16.6x is reasonable for a high-quality firm, and the provided GoodMoat Target of $388.27 implies the stock is trading at a deep discount to its estimated intrinsic value, suggesting a substantial margin of safety. Following the Decision Framework, Accenture passes the Moat & Quality Gate with a likely high business score. The combination of a durable moat, strong financials, and a price implying a significant margin of safety makes this a company worth investigating further for a value investor. Analysis based on data as of 2024-05-15.
Market Cap$118.42B
Current Price$179.22
P/E Ratio15.48
Forward P/E—
PEG Ratio4.01
EPS$12.15
Book Value$47.21
P/B Ratio3.80
ACN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 10.3% FCF growth (CAGR)
Cash vs Debt
Net Cash: 3.3B
Revenue
43.2B
FY19
44.3B
FY20
50.5B
FY21
61.6B
FY22
64.1B
FY23
64.9B
FY24
69.7B
FY25
Net Income
4.8B
FY19
5.1B
FY20
5.9B
FY21
6.9B
FY22
6.9B
FY23
7.3B
FY24
7.7B
FY25
ACN 52-Week Range
$159.64
$312.54
50-Day MA: $186.83200-Day MA: $230.82
Did you know?
Trading 117% below its estimated fair value of $388.27.
Accenture plc - Class A (ACN) Financial Summary
Accenture plc - Class A (ACN) is a Technology company in the Information Technology Services industry, listed on NYSE. The stock currently trades at $179.22 with a market capitalization of $118.42B.
Key valuation metrics include a P/E ratio of 15.48, price-to-book ratio of 3.80, and EPS of $12.15. The company reports a profit margin of 10.6% and return on equity of 24.5%.
ACN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $118.42B |
| P/E Ratio | 15.48 |
| EPS | $12.15 |
| P/B Ratio | 3.80 |
| P/S Ratio | 1.64 |
| EV/EBITDA | 8.99 |
| Dividend Yield | 3.12% |
| Profit Margin | 10.6% |
| Return on Equity | 24.5% |
| Debt/Equity | 0.26 |
ACN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $43.22B | $4.78B |
| FY20 | $44.33B | $5.11B |
| FY21 | $50.53B | $5.91B |
| FY22 | $61.59B | $6.88B |
| FY23 | $64.11B | $6.87B |
| FY24 | $64.90B | $7.26B |
| FY25 | $69.67B | $7.68B |
Accenture plc - Class A (ACN) Valuation
Based on GoodMoat's DCF model, Accenture plc - Class A has a fair value estimate of $388.27. At the current price of $179.22, the stock appears 53.8% undervalued relative to our intrinsic value estimate.
ACN Quality Indicators
Accenture plc - Class A maintains a profit margin of 10.6% and an operating margin of 14.7%. Return on equity stands at 24.5%. The current ratio is 1.42. Debt-to-equity ratio is 0.26.
About Accenture plc - Class A
Accenture is a leading solutions and services company that helps the world's leading enterprises reinvent by building their digital core and unleashing the power of AI to create value at speed across the enterprise, bringing together the talent of our approximately 786,000 people, our proprietary assets and platforms, and deep ecosystem relationships. Our strategy is to be the reinvention partner of choice for our clients and to be the most client-focused, AI-enabled, great place to work in the world. Through our Reinvention Services we bring together our capabilities across strategy, consulting, technology, operations, Song and Industry X with our deep industry expertise to create and deliver solutions and services for our clients. Our purpose is to deliver on the promise of technology and human ingenuity, and we measure our success by the 360° value we create for all our stakeholders.
ACN Free Cash Flow
Accenture plc - Class A generated $10.87B in trailing twelve-month free cash flow, representing an FCF yield of 9.18%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
ACN Shares Outstanding
Accenture plc - Class A has 0.66 billion shares outstanding at a share price of $179.22, giving it a market capitalization of $118.42B.
ACN Recent Insider Trades
Recent insider transactions at Accenture plc - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Egawa Atsushi (Co-CEO Asia Pacific) | SELL | 544 | $94941.93 |
| Sweet Julie Spellman (Chair and CEO) | SELL | 217 | $51235.87 |
| Walsh John F (CEO-The Americas) | SELL | 2 | $471.53 |