ACN - Embedded Expectations Analysis - 2019 02 14
Accenture plc (ACN:USA) currently trades below recent averages relative toUAFRS-based (Uniform) Earnings, with a 16.1x Uniform P/E, implying bearish expectations for the firm. Moreover, management may have concerns about revenue growth, operating margins, FX and tax headwinds, and the resiliency of their portfolio
Specifically, they may be concerned about their ability to deliver on revenue, free cash flow, and tax guidance for 2019, and about their ability to anticipate technology disruptions. Additionally, they may be overstating the adoption of digital products, as well as their positioning as the top service provider for partners. Furthermore, they may lack confidence in their ability to attract talent and sustain improvements in operating margin, SG&A costs, and cloud growth. Moreover, they may have concerns about macroeconomic uncertainties, FX rates, and the potential of their Quantexa venture. Also, they may lack confidence in their ability to compete with new Fintech players, and bolster their resiliency with diversified product offerings. In addition, they may have concerns about Japanese IT demand, the effect of property and equipment additions on free cash flow, and tax standards for intercompany transfers. Finally, they may be concerned about infrastructure outsourcing and taxes.
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