Category: 3. Business

Accenture has introduced its new Physical AI Orchestrator, targeting manufacturing clients looking to boost safety, efficiency, and cost-effectiveness. By collaborating with Belden and NVIDIA, Accenture is showcasing real-world uses of digital twins and AI-powered safety systems designed for the factory floor.

See our latest analysis for Accenture.

Despite Accenture’s push into digital twin and AI-powered solutions for industrial safety, the stock’s momentum has faded this year, with a year-to-date share price return of -29.55%. This marks a tough reversal from longer-term gains, leaving some investors watching for signs of renewed growth potential.

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With shares now trading well below analysts’ targets after this year’s slide, investors are left to consider whether Accenture’s push into AI-driven manufacturing unlocks fresh upside or if the growth story is already factored into the price.

According to FCruz, the narrative sets Accenture’s fair value far below the latest close. Despite recent selloffs, the market price still sits well above what this valuation approach suggests, raising questions about how much future growth is already factored into today’s price tag.

After a sector de-rating, ACN trades around its long-run average multiple with superior profitability and returns on capital for a services name. EPS growth and margin expansion are intact; execution is visible despite a more selective demand environment.

Read the complete narrative.

Curious what underpins this verdict? The narrative makes bold bets on profit margins and consistent cash flow. But there is a twist: a crucial growth assumption could change everything, if it holds. Find out what pivotal metric drives this fair value view.

Result: Fair Value of $202.38 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, shifts in client booking trends or delays in consulting demand could quickly challenge the case for Accenture’s current valuation outlook.

Find out about the key risks to this Accenture narrative.

To balance things out, consider our DCF model, which estimates Accenture’s value based on projected cash flows rather than market ratios. This method actually points to shares being undervalued, with the current price sitting about 11% below its fair value. Could this signal a mispriced opportunity, or will downside momentum persist?

Look into how the SWS DCF model arrives at its fair value.

If you see things differently or want your own perspective, you can build a custom narrative in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Accenture.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ACN.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Wondering if Star Bulk Carriers is offering real value right now? You are definitely not alone. With all the noise out there, it pays to dig deeper than just the headlines.

• After a strong run so far in 2024, the stock has gained 17.4% year-to-date, but it is still down 5.1% over the past year. This signals both renewed optimism and lingering questions about future growth.

• Recent news about global shipping demand and commodity price trends have helped drive attention back to dry bulk carriers like Star Bulk. Analysts point to shifting freight rates and ongoing supply chain adjustments as contributors to price swings. Investors have reacted quickly to these industry dynamics, causing both volatility and renewed interest in the stock.

• According to our valuation checks, Star Bulk Carriers scores a 4 out of 6 for being undervalued. This suggests there is more to unpack here. Next, we will break down how analysts measure this value and why there may be an even better approach to understanding a stock’s true worth by the end of this article.

Star Bulk Carriers delivered -5.1% returns over the last year. See how this stacks up to the rest of the Shipping industry.

The Discounted Cash Flow (DCF) model estimates a company’s worth by projecting its future cash flows and then discounting those amounts back to today’s value. This approach gives investors a sense of what Star Bulk Carriers might truly be worth based on expected, rather than historical, performance.

Star Bulk Carriers’ current Free Cash Flow stands at $283 million. Analysts provide estimates for the next several years, forecasting Free Cash Flow to reach $465 million in 2026 and $618 million in 2027. Beyond analyst coverage, projections continue to climb each year, according to Simply Wall St’s extrapolation, with Free Cash Flow expected to surpass $1.2 billion by the end of the next decade. All cash flows referenced are in US dollars, the company’s reporting currency.

According to this two-stage Free Cash Flow to Equity DCF model, the estimated intrinsic value of Star Bulk Carriers is $94.32 per share. Compared to the current share price, this means Star Bulk Carriers is trading at a steep discount; the model suggests the stock is 80.7% undervalued.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Star Bulk Carriers is undervalued by 80.7%. Track this in your watchlist or portfolio, or discover 870 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Star Bulk Carriers.

For profitable companies like Star Bulk Carriers, the Price-to-Earnings (PE) ratio is a widely used and meaningful valuation tool. It tells us how much investors are willing to pay today for each dollar of the company’s earnings, helping to gauge whether the stock appears cheap or expensive relative to its profits.

What counts as a “normal” or fair PE ratio can vary by industry, expectations for earnings growth, and the risks involved. Higher growth or lower risk businesses often command higher PE ratios, while slower-growing or riskier ones trade at lower multiples.

Currently, Star Bulk Carriers has a PE ratio of 16.7x. That is noticeably higher than the shipping industry average of 9.8x and also above the average of its peers, which sits at just 4.3x. This suggests that, on the surface, investors are paying a premium for Star Bulk compared to similar companies.

However, Simply Wall St introduces a more nuanced metric called the “Fair Ratio.” This proprietary measure considers Star Bulk’s unique growth profile, profit margins, risk factors, industry characteristics, and market cap, delivering a personalized target multiple. For Star Bulk, the Fair Ratio is calculated at 17.2x, which lands almost exactly where the current PE sits.

Compared to simple peer or industry comparisons, the Fair Ratio method better captures the full picture. It accounts for what actually makes Star Bulk unique and what it might reasonably be worth in light of its prospects and risks.

With the current PE ratio just shy of its Fair Ratio, the stock appears to be trading at about the right value using this metric.

Result: ABOUT RIGHT

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Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives—a smarter, more dynamic approach that brings your unique perspective into the valuation process.

A Narrative is simply your own story or thesis about a company, linking what you believe about its future (like revenue growth, earnings, and profit margins) to your forecast and ultimately to a fair value per share.

Instead of relying solely on standard models, Narratives help you combine everything from industry insights to news events and your personal expectations into a financial framework that is easy to follow.

This feature is available to all users on the Simply Wall St Community page, making it a widely used and accessible tool adopted by millions of investors.

By using Narratives, you can instantly compare your calculated fair value with the latest share price, helping you decide whether it might be time to buy, hold, or sell based on logic and your outlook.

What makes Narratives powerful is that they update dynamically as new information arrives. For example, when there is a big news event or fresh quarterly results, your valuation can adjust in real time.

For Star Bulk Carriers, one Narrative might highlight eco-friendly fleet upgrades and rising shipping demand to support a bullish target of $24.0 per share, while another, focused on structural demand risks and higher costs, leads to a more cautious $18.3 target.

Do you think there’s more to the story for Star Bulk Carriers? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SBLK.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Story Continues

Story Continues

Santos Ltd. signaled progress toward shipping the first liquefied natural gas cargo from its $4.5 billion Barossa field off northern Australia, a project that counts as a cornerstone asset for the company.

The shipments could begin in the next few weeks, Sean Pitt, executive vice president for marketing, trading and shipping, said during a speech on Saturday at the China International Oil and Gas Trade Congress in Shanghai.

Banks have differing commitments and targets when it comes to climate change and environmental issues, providing financing and loans for industries varying from fossil fuels to renewable energy.

In Australia, some banks and super funds have been linked to mass deforestation and fossil fuel investments, while others have been criticised for their investments in nuclear weapons manufacturers.

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Globally, banks boosted their financing for fossil fuel companies last year, and none of the world’s largest banks have committed to stop funding new oil and gas fields or coal capacity.

But 76% of Australians now want their super funds and banks to make a formal commitment to zero emissions by 2050, while 88% expect their deposits to be invested ethically, according to the Responsible Investment Association Australasia (RIAA).

As individuals, we can choose to bank according to our values – here’s how to put your money where it can do some good.

Which banks are changing their practices, and how do you track them?

Morgan Pickett, policy analyst and campaigner for Market Forces, says major banks play a major role in shaping the economy, and they now need to listen to the majority of Australians who want their money directed towards renewable energy.

“Major Australian banks and super funds are responding to growing public appetite by slashing funding for fossil fuels, and pressuring coal and gas companies. Many super funds are voting against company directors at major Australian fossil fuel companies but a groundswell of members are demanding faster climate action,” he says.

Australia’s biggest bank, Commonwealth Bank, has announced it will stop loaning to fossil fuel companies without transition plans in line with the Paris Agreement goal of limiting warming to 1.5C. Westpac has also closed funding to thermal coalmines, which have often relied on banks for financing.

Although Australia’s banks rarely make public comments on their clients, including the divestment decisions, Pickett says the most effective way to exert pressure is to contact your bank or super fund directly and tell them you are not happy with their investments and will shift your money unless they change their practices.

“It’s hard to sift through the bank and super fund spin,” Pickett says. “If people move their money on climate grounds, it’s vital that they tell their bank or super fund that this is the reason, otherwise they won’t know.”

Market Forces has created a comprehensive comparison tool that allows you to compare your bank’s investments against others, and to contact them if you’re unhappy.

“The financial industry needs to listen closely,” says Estelle Parker, co-CEO of the RIAA. “There’s a clear market for responsible investment products, but consumers need to be confident their money is truly aligned with their values. Addressing greenwashing concerns and offering a wider range of responsible options is critical.”

What about super?

Australia’s superannuation sector is worth more than A$4.2tn and will soon be the second largest pension pool globally. According to Margaret Beavis from Quit Nukes, an initiative of the Medical Association for Prevention of War, reducing the flow of capital to nuclear weapons manufacturers is an integral part of progress towards the abolition of nuclear weapons.

A 2024 report by Quit Nukes and the Australia Institute found all but one of the 14 major super funds – the exception being Hostplus – failed to exclude investments in nuclear weapons companies from their MySuper portfolios.

“We continue to meet with super funds about excluding nuclear weapons companies from their portfolios,” Beavis says, noting that Vanguard Super and Australian Super recently took the step of removing nuclear weapons from their investment portfolios.

Beavis says banks and super funds need to recognise and take into account the future overall costs to people beyond financial return. However, according to Market Forces’ Superannuation Climate Wreckers Index report, 30 of Australia’s largest super funds have more than doubled their fossil fuel investments to more than $39bn over the past two years.

“Climate change will have terrible consequences for generations with disasters and loss of so many ecosystems and species. Similarly funding weapons – particularly indiscriminate and inhumane ‘controversial’ weapons like nuclear weapons – builds in massive risk of appalling harm to current and future generations,” Beavis says. “As a society we are all impacted, and generations to come will curse us for our negligence.”

Is there any such thing as a truly ethical bank?

Jonathan Moylan from the Australian Conservation Foundation says the influence of the financial sector on the future liveability of the planet can’t be overstated.

“The consequences of climate change on the insurability of properties in disaster-prone regions or fisheries affected by algal blooms will shape the kind of world we live in in decades to come, but the solutions are clear – we need to roughly triple investment in solutions like wind, solar, green metals and transport, halt further expansion of coal and gas, and end deforestation.”

Moylan says Australian banks have provided over $23bn to fossil fuel industries over the past decade, but that tide is shifting and as a direct result of public pressure, major Australian banks are now changing their practices.

Over the last three financial years, Australia’s big four banks have cut lending to fossil fuel extraction, production and power by $9.96bn, according to recent analysis from Market Forces.

“Switching banks can help send a message to the big banks to change, but it only works if they know why, by contacting the bank directly, speaking out publicly, or joining a campaign,” Moylan says. “Ethical banking can help – but ultimately we need to move the whole system, and that takes people power.”

It’s been a pretty great week for Barry Callebaut AG (VTX:BARN) shareholders, with its shares surging 14% to CHF1,195 in the week since its latest yearly results. Revenues were CHF15b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at CHF33.83, an impressive 29% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the twelve analysts covering Barry Callebaut provided consensus estimates of CHF13.6b revenue in 2026, which would reflect a discernible 7.8% decline over the past 12 months. Statutory earnings per share are predicted to soar 105% to CHF69.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF14.3b and earnings per share (EPS) of CHF71.27 in 2026. It’s pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for Barry Callebaut

The analysts made no major changes to their price target of CHF1,280, suggesting the downgrades are not expected to have a long-term impact on Barry Callebaut’s valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Barry Callebaut analyst has a price target of CHF2,070 per share, while the most pessimistic values it at CHF1,000. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.8% by the end of 2026. This indicates a significant reduction from annual growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – Barry Callebaut is expected to lag the wider industry.

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Barry Callebaut. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Barry Callebaut going out to 2028, and you can see them free on our platform here..

That said, it’s still necessary to consider the ever-present spectre of investment risk. We’ve identified 5 warning signs with Barry Callebaut (at least 1 which is a bit unpleasant) , and understanding these should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.