Accenture PLC: A Snapshot
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 $316.75, Accenture PLC has witnessed a surge of 0.83% over a period, marked against a three-month change of 9.19%. A thorough analysis, underlined by the GuruFocus Score Rating, suggests that Accenture PLC is well-positioned for substantial growth in the near future.
Understanding 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.
Accenture PLC's GF Score components are as follows:
- 1. Financial strength rank: 9/10
- 2. Profitability rank: 9/10
- 3. Growth rank: 10/10
- 4. GF Value rank: 6/10
- 5. Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in financial strength, profitability, and growth, and decent ranks in GF value and momentum, GuruFocus assigned Accenture PLC the GF Score of 96 out of 100, which signals the highest outperformance potential.
Accenture PLC: A Brief Overview
Accenture PLC 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 a market cap of $199.8 billion and sales of $63.55 billion, Accenture PLC has an operating margin of 14.42%.
Financial Strength Breakdown
According to the Financial Strength rating, Accenture PLC's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for Accenture PLC stands impressively at 213.18, underscoring its strong capability to cover its interest obligations. With an Altman Z-Score of 7.5, Accenture PLC exhibits a strong defense against financial distress. With a favorable Debt-to-Revenue ratio of 0.05, Accenture PLC's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows Accenture PLC's impressive standing among its peers in generating profit. Accenture PLC Operating Margin has increased (1.37%) over the past five years. Accenture PLC's strong Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Accenture PLC demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 13%, which outperforms better than 61.58% of 2392 companies in the Software industry. Moreover, Accenture PLC has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 16.9, and the rate over the past five years is 15.8.
Conclusion
Accenture PLC's financial strength, profitability, and growth metrics highlight the firm's unparalleled position for potential outperformance. The GuruFocus Score Rating underscores this potential, making Accenture PLC a compelling investment opportunity. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
