ACN - Embedded Expectations Analysis - 2019 04 16
Accenture plc (ACN:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 17.6x Uniform P/E, though this still implies bearish expectations for the firm. Moreover, management may have concerns about bookings growth, cloud migration consulting, and their orchestrated data strategy.Specifically, management may be concerned about leadership changes, their positioning in Growth Markets, and their plan to move to a quarterly dividend. In addition, they may lack confidence in their ability to sustain bookings growth, and may be concerned about their cloud migration consulting strategy and cloud partnership with Amazon Web Services. Also, they may be concerned about Brexit and trade dispute risks, the alignment of results and strategic priorities, and their ability to drive long-term performance. Moreover, they may be exaggerating the uniqueness of their strategy and approach to orchestrated data, the consistency and durability of their financial performance, and the opportunities available for custom app development in next-generation packages and platforms.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
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- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
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