Accenture PLC (ACN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $304.14 and a notable daily gain of 6.58%, despite a three-month decline of 19.93%, the company stands out in the competitive landscape. A detailed analysis, supported by the GF Score, indicates that Accenture PLC is poised for significant growth, making it a compelling choice for investors.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Accenture PLC boasts a GF Score of 97, reflecting its strong potential in the market.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 5/10
Understanding Accenture PLC's Business
Accenture PLC is a global leader in IT services, offering a broad spectrum of consulting, strategy, technology, and operational services. The company aids various sectors, including communications, media, technology, financial services, and health, in their digital transformation efforts. With a market cap of $191.22 billion and annual sales of $64.57 billion, Accenture employs nearly 500,000 people across 200 cities in 51 countries, showcasing its vast global presence and operational scale.
Financial Strength Breakdown
Accenture PLC's financial robustness is evident through its impressive Interest Coverage ratio of 166.32, significantly higher than Benjamin Graham's recommended minimum of 5. This indicates the company's strong ability to meet its interest obligations. Additionally, with an Altman Z-Score of 7.15, Accenture demonstrates a solid defense against financial distress. The company's strategic debt management is reflected in its low Debt-to-Revenue ratio of 0.05, further affirming its financial health.
Profitability and Growth Metrics
Accenture PLC excels in profitability, with a consistent increase in Gross Margin over the past five years, reaching 32.34% in 2023. This trend highlights the company's efficiency in converting revenue into profit. The firm's Predictability Rank of 4.5 stars out of five also underscores its reliable operational performance.
Accenture's commitment to growth is evident in its 3-Year Revenue Growth Rate of 13.6%, outperforming 61.12% of its peers in the software industry. The company's EBITDA has also seen significant growth, with a three-year growth rate of 7.8 and a five-year rate of 11.2, emphasizing its ongoing expansion and operational efficiency.
Conclusion
Considering Accenture PLC's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the 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.
