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

By Mill Chart

Last update: Feb 1, 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.

Some of the quality metrics of NYSE:ACN highlighted

  • The 5-year revenue growth of ACCENTURE PLC-CL A has been remarkable, with 9.36% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 87.33%, ACCENTURE PLC-CL A showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • 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.
  • ACCENTURE PLC-CL A has experienced impressive EBIT growth over the past 5 years, with 10.85% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • ACCENTURE PLC-CL A demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NYSE:ACN

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, ACN scores 6 out of 10 in our fundamental rating. ACN was compared to 87 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making ACN a very profitable company, without any liquidiy or solvency issues. ACN is valied quite expensively at the moment, while it does show a decent growth rate.

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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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