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Accenture PLC – 7 Business Facts, Businesses & major Acquisitions

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Accenture PLC

Accenture PLC (Accenture) is a management consulting, technology services and outsourcing company.

Corporate Profile

  1. Founded in 1989
  2. Offices and operations in more than 200 cities in 54 countries
  3. The Company’s business includes five operating groups, which together consist of 19 industry groups
  4. Employs over 2,57,000 employees globally as of 2012
  5. Headquartered in Dublin, Ireland
  6. Generated as high as 27.9 billion USD in revenue as of 2012
  7. Reported whooping net income of 2.55 billion USD as of 2012

Accenture Major Acquisitions

Company has believed in the inorganic method of growth and has been significantly acquiring firms across the world. Following are some of the major acquisitions concluded by the firm recently.

  • In April 2012, acquired Neo Metrics Analytics S.L a consulting firm specializing in optimization and predictive analytics based in Madrid, Spain
  • In August, 2012, the Company acquired Octagon Research Solutions, Inc.
  • In October 2012, it acquired the software and skills of Nokia Siemens Networks Internet Protocol television (IPTV) business
  • Again in the same month, company acquired avVenta Worldwide

Accenture Businesses

1. Communications, Media & Technology

The unit consists of Communications, Electronics & High Tech and Media & Entertainment. The unit serves wireline, wireless communications and service providers so as to provide comprehensive solutions which include the application of mobile technology software and services, broadband and Internet protocol solutions, advanced advertising solutions, product innovation and digital rights management. The Company’s Electronics & High Tech industry group represented approximately 35% of its Communications & High Tech revenues during fiscal 2011.

2. Financial Services

As the name very well suggests the group focuses on its clients’ needs to adapt to changing market conditions, including increased cost pressures, regulatory changes, the creation of industry standards and protocols. The group consists of Banking, Capital Markets and Insurance industry groups. Of all the financial and financial services companies under the group, banking industry group represented maximum revenue share to the tune of 55% of its Financial Services revenues during the fiscal 2011.

Read on GWI Asset Management Companies in India.

3. Health & Public Service

The Company’s Health & Public Service operating group serves healthcare payers and providers, as well as government agencies and public service organizations around the world. It consists of Health and Public Service industry groups. Through its insight-driven health initiative, its health industry group works with healthcare providers, government health departments, policy-making authorities/regulators, managed care organizations, health insurers and other industry-related organizations around the world. Its key offerings address a variety of areas, including electronic medical records, health insurance exchanges, back-office services for hospitals and health plans, sales and marketing, core administration services, care management services, claims excellence/cost containment, and corporate functions, including human resources, finance, procurement and information technology.

Read on GWI Life Insurance Industry in India.

4. Products

Products operating group serves a set of increasingly interconnected consumer-relevant industries The Products group consists of Air, Freight & Travel Services, Automotive, Consumer Goods & Services, Industrial Equipment, Infrastructure & Transportation Services, Life Sciences and Retail.

Of all the industries the Consumer Goods & Services industry group represented approximately 30% of its Products revenues during the fiscal 2011.

5. Resources

The Resources operating group serves the chemicals, energy, forest products, metals and mining, utilities and related industries. The unit serves a range of companies in the oil and gas industry, including upstream, downstream, oil services and clean-energy companies. The energy industry group represented approximately 30% of its Resources group’s revenues during the fiscal 2011.

Accenture Financials as of August 31, 2012

  • Mkt cap : $55.27Billion
  • P/E: 18.17
  • Div/yield: 0.81/2.32
  • EPS: 3.84
  • Shares: 791.85Million
Profitability
Profit Margin (ttm): 9.32%
Operating Margin (ttm): 14.07%
Management Effectiveness
Return on Assets (ttm): 15.54%
Return on Equity (ttm): 62.50%
Income Statement
Revenue (ttm): 28.01B
Revenue Per Share (ttm): 43.63
Qtrly Revenue Growth (yoy): 2.10%
Gross Profit (ttm): 8.99B
EBITDA (ttm)6: 4.27B
Net Income Avl to Common (ttm): 2.61B
Diluted EPS (ttm): 3.61
Qtrly Earnings Growth (yoy): 8.80%
Balance Sheet
Total Cash (mrq): 5.68B
Total Cash Per Share (mrq): 8.82
Total Debt (mrq): 32.00K
Total Debt/Equity (mrq): 0
Current Ratio (mrq): 1.51
Book Value Per Share (mrq): 7.03
Trading Information
Beta: 1.21
Avg Vol (3 month)3: 29,76,830
Avg Vol (10 day)3: 26,50,090

 

If we look at the key financials we see that the company is rich in its cash balance and has very low debt thus having s strong position. Also the trading statistics very well shows that the company has good volumes of shares transactions. The profit margin though has reduced but the management effectiveness has improved over the years. The company’s shares respond positively in the market as seen by the beta which is greater than.

It can be said that owing to the fact of the ongoing global crisis company may see a slow growth in the projects but over the period of time it is expected to grow as it has diversified across many sectors.

PG

Niraj Satnalika

Niraj is an MBA in International Business (Finance). Prior to this he completed B.Tech in Electronics and Instrumentation. He is currently working with Confederation of Indian Industry (CII), Kolkata in capacity of Consultant. Satnalika is actively involved with an NGO and works towards promoting education among the underprivileged.

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