Accenture Stock To $263?

Accenture (ACN) stock has fallen 6.6% during the past day, and is currently trading at $201.18. Our multi-factor assessment suggests that it may be time to buy more shares of ACN stock. We have, overall, a positive view of the stock, and a price of $263 may not be out of reach. We believe there are only a couple of things to fear in ACN stock given its overall Moderate operating performance and financial condition. Considering stock’s Low valuation we think it is Attractive.

Below is our assessment:

Ask yourself – Is holding ACN stock risky? Of course it is. High Quality Portfolio mitigates that risk.

Let’s get into details of each of the assessed factors but before that, for quick background: With $125 Bil in market cap, Accenture provides strategy, consulting, technology, and operations services, including agile transformation, DevOps, application modernization, AI, data management, and talent and organization consulting.

[1] Valuation Looks Low

This table highlights how ACN is valued vs broader market. For more details see: ACN Valuation Ratios

[2] Growth Is Moderate

• Accenture has seen its top line grow at an average rate of 4.3% over the last 3 years
• Its revenues have grown 6.6% from $66 Bil to $71 Bil in the last 12 months
• Also, its quarterly revenues grew 6.0% to $19 Bil in the most recent quarter from $18 Bil a year ago.

This table highlights how ACN is growing vs broader market. For more details see: ACN Revenue Comparison

[3] Profitability Appears Moderate

• ACN last 12 month operating income was $10 Bil representing operating margin of 14.4%
• With cash flow margin of 17.1%, it generated nearly $12 Bil in operating cash flow over this period
• For the same period, ACN generated nearly $7.6 Bil in net income, suggesting net margin of about 10.8%

This table highlights how ACN profitability vs broader market. For more details see: ACN Operating Income Comparison

[4] Financial Stability Looks Very Strong

• ACN Debt was $8.2 Bil at the end of the most recent quarter, while its current Market Cap is $125 Bil. This implies Debt-to-Equity Ratio of 6.6%
• ACN Cash (including cash equivalents) makes up $9.7 Bil of $65 Bil in total Assets. This yields a Cash-to-Assets Ratio of 14.9%

[5] Downturn Resilience Is Moderate

ACN saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• ACN stock fell 40.7% from a high of $415.42 on 29 December 2021 to $246.17 on 15 March 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $398.25 on 5 February 2025 , and currently trades at $201.18

 
2020 Covid Pandemic

• ACN stock fell 33.5% from a high of $215.92 on 19 February 2020 to $143.69 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 25 June 2020

 
2008 Global Financial Crisis

• ACN stock fell 39.1% from a high of $43.81 on 23 July 2007 to $26.67 on 21 April 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 21 April 2010

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read ACN Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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