Skip to Content

Accenture PLC Class A ACN

Morningstar Rating
$343.99 +2.96 (0.87%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Accenture Earnings: Mixed Quarter as Sales Continue To Be Impacted by Turbulent Macro Conditions

Wide-moat Accenture reported a mixed quarter with a tough macro environment continuing to negatively impact discretionary IT spending. While we expect Accenture to attract a sizable portion of IT spending when macro conditions normalize and discretionary IT spending accelerates, we don’t see a turnaround for the remainder of fiscal 2024. Despite the mixed results, we are raising our fair value estimate for the firm to $292 from $271 primarily due to changes to our working capital assumptions and the time value of money. While investors were disappointed with Accenture’s financial results, sending the company’s shares down more than 8% following the earnings report, we still view Accenture as overvalued.

Price vs Fair Value

ACN is trading at a 14% premium.
Price
$333.82
Fair Value
$825.00
Uncertainty
Medium
1-Star Price
$794.60
5-Star Price
$215.60
Economic Moat
Mkgy
Capital Allocation
Rrkshcxn

Bulls Say, Bears Say

Bulls

Accenture will increase wallet share with its enterprise customers as the technology landscape becomes increasingly complex.

Bears

Given our belief that reputation is a key driver of Accenture’s wide moat, if a large scandal were to occur (data breach or privacy invasion), the firm’s reputation could suffer.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ACN is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$341.03
Day Range
$340.94345.10
52-Week Range
$261.68387.50
Bid/Ask
$343.71 / $343.99
Market Cap
$215.96 Bil
Volume/Avg
260,015 / 2.3 Mil

Key Statistics

Price/Earnings (Normalized)
28.55
Price/Sales
3.37
Dividend Yield (Trailing)
1.41%
Dividend Yield (Forward)
1.51%
Total Yield
2.74%

Company Profile

Accenture is a leading global IT-services firm that provides consulting, strategy, and technology and operational services. These services run the gamut from aiding enterprises with digital transformation to procurement services to software system integration. The company provides its IT offerings to a variety of sectors, including communications, media and technology, financial services, health and public services, consumer products, and resources. Accenture employs just under 500,000 people throughout 200 cities in 51 countries.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Large Core
Total Number of Employees
742,000

Competitors

Valuation

Metric
ACN
CTSH
IBM
Price/Earnings (Normalized)
28.5516.1819.85
Price/Book Value
8.492.777.75
Price/Sales
3.371.922.84
Price/Cash Flow
20.2614.7614.98
Price/Earnings
ACN
CTSH
IBM

Financial Strength

Metric
ACN
CTSH
IBM
Quick Ratio
1.131.950.80
Current Ratio
1.262.250.96
Interest Coverage
168.5865.905.99
Quick Ratio
ACN
CTSH
IBM

Profitability

Metric
ACN
CTSH
IBM
Return on Assets (Normalized)
17.18%13.44%6.74%
Return on Equity (Normalized)
36.65%19.02%39.82%
Return on Invested Capital (Normalized)
28.45%16.62%11.92%
Return on Assets
ACN
CTSH
IBM
See how this stock stacks up to its competitors with Morningstar Investor

Information Technology Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
IBM
International Business Machines CorpVfpwqNpdtktk$174.9 Bil
FI
Fiserv IncTzbkshhWvxqzf$94.1 Bil
INFY
Infosys Ltd ADRMcjjqflgxPbqks$73.7 Bil
FIS
Fidelity National Information Services IncWrlfshcDnprcq$42.3 Bil
CTSH
Cognizant Technology Solutions Corp Class ALndpxvflRhbfvlc$36.7 Bil
WIT
Wipro Ltd ADRJzqjytqyZbpqzgh$29.6 Bil
GIB
CGI Inc Class AJtwrvmtGdpsyj$25.6 Bil
BR
Broadridge Financial Solutions IncJgtdqjhrDdxvbd$24.0 Bil
EPAM
EPAM Systems IncWtmnkgrBxzgzvn$16.0 Bil

Sponsor Center