ACN Investment Analysis Report & Stock Research, Accenture PLC

Accenture PLC (ACN)

ACN Stock Report

2-Year Price History

View Larger ACN Chart
NYSE:ACN
$40.33
(2/9 3:44PM)
+0.4%
Open$40.47 Mkt Cap$25.4 Billion
High$40.78 52Wk High$43.89
Low$40.17 52Wk Low$26.33
Volume4.0 Million Avg Vol 10D4.2 Million

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ACN Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, ACN the high and low end of the Price to Sales per share ratios are 1.62x and 1.07x respectively.

Notice that ACN's current Price to Sales per share ratio is 1.29x, which is somewhat below its historical weighted average by 5%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.

ACN Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. ACN is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for ACN to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 22.82 and a 14.74 low over the same period.

Now that ACN’s current price is $40.54 and its Price to Cash Earnings ratio is 14.13, we are very positive on its outlook from the cash earnings perspective. In fact, ACN is now trading a full 25% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why ACN has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.

ACN Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In ACN’s case, the estimated annual dividend is $0.75 resulting in a current dividend yield of 1.85%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from ACN against the historic high and low levels over the past 10 years. The highest dividend yield from ACN over this period was 2.85% while the lowest dividend yield was 0.00% It's hard not to notice that ACN pays a current dividend yield that is 29.82% above the historical median. This peaks our interest since our analysis looks favorably upon dividend yields that are greater than the historical median.

Peer Comparison

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Accenture PLC Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including ACN) 16.45 8.64 » 47.66 3.23 1.59 » 8.82 9.90% 103.06%
*10 year range does not include current year values
Thomson-Reuters Corp. TRI $27.3 Billion $32.96 8.53 4.74 » 15.64 2.11 1.02 » 4.19 9.01% 13.34%
Accenture PLC ACN $25.4 Billion $40.17 14.13 9.06 » 54.50 1.29 0.81 » 2.20 8.92% 57.74%
MasterCard, Inc. Class A MA $24.9 Billion $226.40 18.58 9.85 » 97.83 5.70 1.63 » 8.30 n/a 17.01%
Express Scripts, Inc. ESRX $23.2 Billion $84.50 25.63 10.36 » 28.18 1.06 0.25 » 1.13 10.58% 49.26%
The Western Union Company WU $11.2 Billion $16.16 12.70 6.88 » 19.10 2.78 1.42 » 4.17 n/a 401.88%
Paychex, Inc. PAYX $10.4 Billion $28.86 16.83 11.39 » 77.55 4.51 3.65 » 26.30 10.11% 33.80%
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5:49P, Dec. 31,2009 ACN $41.50 Accenture PLC
Happy Hour

Happy Hour: What is Happening with Accenture PLC Now?

The latest news on Happy Hour in regards to ACN came through on RazorWire recently.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ACN has been less covered in the news compared to the rest of our universe of stocks. We consider ACN as Undervalued at the current price of $41.74. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe Accenture PLC will beat the market in the foreseeable future.

“… So we're talking nike, proctor & gamble, which is gillette and ACCENTURE, also he had another, if you're shareholder you're pretty cody: I would note the market was fractionally ... …”

2:19P, Dec. 31,2009 ACN $41.62 Accenture PLC
Street Signs

Stay Current on ACN's News on Street Signs

The latest news from Street Signs on ACN is available through Ockham's news analytics platform RazorWire.

Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on ACN, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Accenture PLC has actually sunk a bit in comparison to the others.

“… The company is ending its sponsership deal with the this month consulting firm ACCENTURE dropped woods' sponsor. At&t told cnbc, quote, we are ending our sponsorship agreement ... …”

10:33A, Dec. 31,2009 ACN $41.68 Accenture PLC
Squawk On The Street

Squawk On The Street Discusses Higher Prices and Accenture PLC

Stick with it or dump it? Squawk On The Street discusses what an abnormally high price means for ACN's investors. Take note of Ockham's valaution on the stock as well.

The Motley Fool CAPS data suggests that investors believe Accenture PLC will beat the market in the foreseeable future. We consider ACN as Undervalued at the current price of $41.68. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ACN has been less covered in the news compared to the rest of our universe of stocks.

“… ACCENTURE the first major name to drop tiger right now I think the stock is basically flat. Very light volume in the marketplace today. …”

5:36P, Dec. 30,2009 ACN $41.90 Accenture PLC
Happy Hour

News Developing on Happy Hour for ACN

As always, the latest news on ACN is available to Ockham clients through RazorWire, and it was mentioned recently on Happy Hour.

Based on our methodology, Accenture PLC should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; ACN has received less coverage from the financial media in business television and blogs.

“… Can you conceive nike and ACCENTURE have market cap hit because they bet wrong on tiger? > > I will never bet against phil knight nike. I'm sure he will somehow parlay this. …”

5:34P, Dec. 30,2009 ACN $41.90 Accenture PLC
Happy Hour

See More News on ACN from Happy Hour

Accenture PLC is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Happy Hour.

The Motley Fool CAPS data suggests that investors believe Accenture PLC will beat the market in the foreseeable future. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Accenture PLC has been talked about more than normal recently. We consider ACN as Undervalued at the current price of $41.90. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.

“… That was the date of tiger's car accident where he ran his cadillac escalade into a this illustrates that sponsors from ACCENTURE, at&t, nike, gatorade, the overall shareholder ... …”

2:41P, Dec. 29,2009 ACN $41.68 Accenture PLC
Street Signs

Accenture PLC Was Talked About by Street Signs

Accenture PLC is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Street Signs.

Based on our methodology, Accenture PLC should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of ACN, it is getting significantly more attention in recent news coverage than we are used to seeing. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… Very good science out of ACCENTURE. > > of course they've been in the news because of the tiger woods thanks very much for joining us. > > thank you. > > …”

2:40P, Dec. 29,2009 ACN $41.69 Accenture PLC
Street Signs

Accenture PLC Cash Flow Generation Covered by Street Signs

The latest cash flow information from ACN was covered on Street Signs recently, and investors should be interested in anything that affects their ability to generate cash.

Ranking all stocks in terms of news coverage offers some interesting data. In the case of ACN, it is getting significantly more attention in recent news coverage than we are used to seeing. Based on our methodology, Accenture PLC should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… yes, ACCENTURE spun out from the old arthur andersen. Balanced business model, consulting and outsourcing and it's creme de la creme, who's who list of fortune 500 a cash flow ... …”

9:45A, Dec. 18,2009 ACN $41.30 Accenture PLC
Squawk On The Street

Notice a Discussion Covering ACN Appeared Recently in the Financial News

The latest news from Squawk On The Street on ACN is available through Ockham's news analytics platform RazorWire.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ACN has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Accenture PLC will beat the market in the foreseeable future. We consider ACN as Undervalued at the current price of $41.30. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.

“… morgan stanley were down and they have paired some of the start with ACCENTURE. Guidance is below consensus. The weakness more an outsourcing rather than consulting business. …”

9:04A, Dec. 18,2009 ACN $40.80 Accenture PLC
Squawk On The Street

ACN Gets Mentioned in the Financial Media

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on ACN from Squawk On The Street.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Accenture PLC has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on ACN, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.

“… Canceling orders with its suppliers and ACCENTURE down 2%. Current quarter and putting pressure on the stock right now. . …”

5:49P, Dec. 14,2009 ACN $41.96 Accenture PLC
Happy Hour

Happy Hour Has News on ACN

The latest news from Happy Hour on ACN is available through Ockham's news analytics platform RazorWire.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ACN has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Accenture PLC will beat the market in the foreseeable future. We consider ACN as Undervalued at the current price of $42.00. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.

“… Do they really want to buy these things for their cody: dan, got to say, gives a whole new meaning to the ACCENTURE ad campaign, the slogan was, go ahead be a tiger right? > > …”

View All Accenture PLC Stock News

Key Fundamentals

ACN - Accenture PLC Fundamentals
Price (2/9 3:44PM) $40.33
Volume (2/9 3:44PM) 4.0 Million
Last Close Price $40.17
10 Day Average Volume 4.2 Million
13 Week Price Range $39.38 - $43.89
52 Week Price Range $26.33 - $43.89
LTM Revenue $22.4 Billion
 
Shares Outstanding (08/2009) 713.8 Million
Market Capitalization $25.4 Billion
Shares Held By Institutions 494.0 Million
Institutional Holders 851
% Shares Held By Institutions %
Earnings Per Share (EPS) $2.44
P/E Ratio 16.90
Book Value Per Share $3.94
 
Gross Margin 32.20%
Annual Dividend 0.75
Dividend Yield 1.90%
Beta 0.72
Fiscal Year Ends August

About Accenture PLC

Accenture PLC is considered to operate in the Services sector. They specifically operate in the Management Services business segment contained within the Diversified Services industry.

A global management consulting, technology services and outsourcing Company.