Accenture demonstrated strong performance in Q1 FY25 with significant revenue growth and robust new bookings, supported by strategic investments in workforce and technology. However, pricing pressures and uncertain macroeconomic conditions pose challenges for maintaining margins and growth momentum going forward. The company's focus on GenAI and digital transformation positions it well for future opportunities, but caution is warranted regarding overall client spending.
Analysis Date: December 19, 2024
Last Updated: March 11, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Graham Value Metrics
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$344.51
Current Market Price: $285.22
IV/P Ratio: 1.21x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
17.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
ROE: 26.84886617533483
ROA: 2.9866081298210068
Gross Profit Margin: 32.469581176831106
Net Profit Margin: 11.407538257078564
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Strong Profit Margins
32.47%
Gross Profit Margin
15.17%
Operating Profit Margin
The company has a gross profit margin of 32.47%, operating profit margin of 15.17%, and net profit margin of 11.41%, showcasing effective cost control and strong profitability.
Consistent Free Cash Flow
$14.47
Free Cash Flow per Share
A free cash flow per share of approximately $14.47 indicates that the company generates substantial cash, providing flexibility for growth and dividends.
Moderate Dividend Payout Ratio
44.31%
Dividend Payout Ratio
The dividend payout ratio of 44.31% suggests that while the company returns some profits to shareholders, a significant portion is retained for reinvestment, which could be a concern for income-focused investors.
About Profitability Metrics
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
26.85%
10%
15%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
2.99%
3%
7%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
32.47%
20%
40%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
11.41%
8%
15%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
Low Debt Levels
0.20
Debt-to-Equity Ratio
A debt-to-equity ratio of 0.20 indicates that the company maintains a conservative capital structure, minimizing financial risk.
Strong Liquidity Ratios
With a current ratio and quick ratio both at approximately 1.47, the company demonstrates strong liquidity, indicating it can easily meet short-term liabilities.
Cash Ratio Below 0.5
The cash ratio of 0.48 suggests that while liquidity is strong, the company has less cash available to cover current liabilities compared to its total liabilities, indicating a potential liquidity risk.
About Financial Health Metrics
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.19x
1.0x
2.0x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q2 2025
Current Ratio
Current assets divided by current liabilities
1.48x
1.0x
2.0x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q2 2025
