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Why NYSE:ACN qualifies as a quality stock.

By Mill Chart

Last update: Dec 19, 2023

In this article we will dive into ACCENTURE PLC-CL A (NYSE:ACN) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ACCENTURE PLC-CL A showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into ACCENTURE PLC-CL A's Quality Metrics.

  • ACCENTURE PLC-CL A has shown strong performance in revenue growth over the past 5 years, with a 9.36% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 115.0%, ACCENTURE PLC-CL A demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • ACCENTURE PLC-CL A maintains a healthy Debt/Free Cash Flow Ratio of 0.02, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a robust Profit Quality (5-year) ratio of 135.0%, ACCENTURE PLC-CL A highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • With a robust 5-year EBIT growth of 10.85%, ACCENTURE PLC-CL A showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • ACCENTURE PLC-CL A has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, ACN scores 7 out of 10 in our fundamental rating. ACN was compared to 89 industry peers in the IT Services industry. ACN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ACN is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of ACN for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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