ACN - Embedded Expectations Analysis - 2021 05 03
Accenture plc (ACN:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 29.9x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about their Shiseido partnership, operating margins, and double-digit revenue growth in Japan and across cloudSpecifically, management is confident their Shiseido partnership will accelerate digital transformation and create personalized and seamless customer experiences, that their operating margins increased year-to-date, and that they have onboarded over 100,000 new hires virtually over the last 12 months. In addition, management is confident they are differentiated because they can bring all outsourced services together, that they have remaining share repurchase authority worth $5 billion, and that they are focused on their V&A strategy. Also, management is confident their overall cloud-focused business saw strong double-digit growth, that double-digit growth in Japan drove solid growth market revenue performance, and that they will achieve high-single to low double-digit growth in outsourcing
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