Accenture PLC (ACN, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $353.65, Accenture PLC has witnessed a daily gain of 0%, marked against a three-month change of 15.15%. A thorough analysis, underlined by the GF Score, suggests that Accenture PLC is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Accenture PLC's high ranks in financial strength, profitability, and growth demonstrate its robustness and potential for long-term success. Although the GF Value rank is moderate, the overall GF Score of 97 out of 100 signals the highest outperformance potential.
Understanding Accenture PLC's Business
Accenture PLC, with a market cap of $221.74 billion and sales of $64.59 billion, is a leading global IT-services firm that provides consulting, strategy, and technology and operational services. These services run the gamut from aiding enterprises with digital transformation to procurement services to software system integration. The company provides its IT offerings to a variety of sectors, including communications, media and technology, financial services, health and public services, consumer products, and resources. Accenture employs just under 500,000 people throughout 200 cities in 51 countries. With an operating margin of 13.6%, Accenture PLC showcases its efficiency in managing operations and profitability.
Financial Strength Breakdown
Accenture PLC's Financial Strength rating is a testament to its resilience against financial volatility, reflecting prudent management of its capital structure. The Interest Coverage ratio for Accenture PLC stands impressively at 160.43, underscoring its strong capability to cover its interest obligations. This robust financial position resonates with the wisdom of legendary investor Benjamin Graham, who favored companies with an interest coverage ratio of at least 5. With an Altman Z-Score of 8.07, Accenture PLC exhibits a strong defense against financial distress, highlighting its robust financial stability. The favorable Debt-to-Revenue ratio of 0.05 solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank reflects Accenture PLC's impressive standing among its peers in generating profit. The company's Gross Margin has consistently risen over the past five years, indicating growing proficiency in transforming revenue into profit. The Piotroski F-Score confirms Accenture PLC's solid financial situation, and its strong Predictability Rank of 4.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Accenture PLC's high Growth Rank demonstrates its commitment to expanding its business. The company's 3-Year Revenue Growth Rate of 13.6% outperforms 62.31% of companies in the Software industry. Moreover, Accenture PLC has seen a robust increase in its EBITDA over the past few years, with a three-year growth rate of 7.8 and a five-year rate of 11.2, highlighting its capability to drive growth.
Conclusion: Accenture PLC's Position for Outperformance
Accenture PLC's financial strength, profitability, and growth metrics, as reflected in the GF Score, highlight the firm's unparalleled position for potential outperformance. The company's strategic approach to financial management, consistent profitability, and sustained growth trajectory provide a compelling case for investors. With a GF Score near the top of the scale, Accenture PLC is poised to continue its market leadership and deliver value to shareholders.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
