Skip to Content

Accenture PLC Class A ACN

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Accenture Beats Q3 Guidance as Business Is Booming All Around; Raising FVE to $220

Julie Bhusal Sharma Equity Analyst

Analyst Note

| Julie Bhusal Sharma |

Wide-moat Accenture brought in stellar third-quarter results, beating management’s top-line expectations thanks to broad-based growth as all of its industry verticals are recovering from the global pandemic. Accenture was able to expand margins even with a tough comparison with COVID-19 tailwinds. As a result, Accenture raised its guidance for fiscal 2021, and while it did not disclose an official fiscal 2022 outlook, management did hint at mild year-over-year operating expansion over the next fiscal year. We were not expecting such margin expansion given what we had forecast to be a tough comparison, given the lack of travel costs in the first half of fiscal 2021. Therefore, we’re more confident in Accenture’s abilities to mildly expand margins, as we think automation benefits can counteract increasing wages due to high demand for talent. With rosier expectations, we are increasing our fair value estimate to $220 per share from $200. After the results announcement, the stock is up about 2% to over $290, making Accenture still overvalued, in our view. We remain more bullish than FactSet consensus estimates of top- and bottom-line results over the next several years. However, we believe Accenture’s systematic risk should be considered average, which we believe explains the discrepancy in how the market is valuing the company.

Read Full Analysis

Company Profile

Business Description

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.

Contact
1 Grand Canal Square, Grand Canal Harbour
Dublin, 2, Ireland
T +353 16462000
Sector Technology
Industry Information Technology Services
Most Recent Earnings May 31, 2021
Fiscal Year End Aug 31, 2021
Stock Type
Employees 569,000

Related

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.