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Why ACCENTURE PLC-CL A (NYSE:ACN) should be investigated by quality investors.

By Mill Chart

Last update: Jan 11, 2024

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.

Exploring Why NYSE:ACN Holds Appeal for Quality Investors.

  • ACCENTURE PLC-CL A has achieved substantial revenue growth over the past 5 years, with a 9.36% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • ACCENTURE PLC-CL A exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 70.1% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a favorable Debt/Free Cash Flow Ratio of 0.02, ACCENTURE PLC-CL A showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • 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.
  • The 5-year EBIT growth of ACCENTURE PLC-CL A has been remarkable, with 10.85% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • ACCENTURE PLC-CL A has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NYSE:ACN?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to ACN. ACN was compared to 87 industry peers in the IT Services industry. While ACN has a great profitability rating, there are some minor concerns on its financial health. ACN is quite expensive at the moment. It does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of ACN

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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