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ACCENTURE PLC-CL A (NYSE:ACN) can be considered a quality stock. Here's why.

By Mill Chart

Last update: Feb 23, 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.

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

  • ACCENTURE PLC-CL A has demonstrated significant revenue growth over the past 5 years, with a 9.36% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of ACCENTURE PLC-CL A stands at 87.33%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • The Debt/Free Cash Flow Ratio of ACCENTURE PLC-CL A stands at 0.02, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 135.0%, ACCENTURE PLC-CL A showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • 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.

A complete fundamental analysis of 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 85 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. While showing a medium growth rate, ACN is valued expensive at the moment.

Our latest full fundamental report of ACN contains the most current fundamental analsysis.

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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