Accenture PLC (ACN, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance. With a current share price of $311.6 and a daily gain of 0.85%, despite a three-month decline of 7.58%, the company shows promising signs of substantial growth. A detailed analysis, supported by the GF Score, positions Accenture PLC for potential market outperformance in the near future.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, assessing stocks based on five key valuation aspects from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. Accenture PLC boasts a GF Score of 94 out of 100, indicating a high potential for outperformance, driven by its scores in financial strength (9/10), profitability (9/10), growth (10/10), GF Value (7/10), and momentum (5/10).
Understanding Accenture PLC's Business
Accenture PLC, with a market cap of $195.18 billion and annual sales of $64.48 billion, is a global leader in IT services. The company offers a broad range of services including consulting, digital transformation, and technology integration across various sectors such as technology, financial services, and health. Operating with nearly 500,000 employees in over 200 cities across 51 countries, Accenture is pivotal in driving technological advancements in numerous industries.
Financial Strength Breakdown
Accenture's financial robustness is reflected in its impressive Interest Coverage ratio of 171.01 and an Altman Z-Score of 6.95, indicating low risk of financial distress. Additionally, its strategic debt management is evidenced by a Debt-to-Revenue ratio of 0.07, underscoring a strong balance sheet and prudent capital management.
Profitability Rank Breakdown
Accenture's profitability is exemplary within its industry, 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, further supported by a Predictability Rank of 4.5 stars, indicating reliable operational performance.
Growth Rank Breakdown
Accenture has demonstrated strong growth, with a 3-Year Revenue Growth Rate of 13.6%, outperforming 60.94% of its peers in the software industry. The company's EBITDA growth rates over the past three and five years further underscore its growth capabilities and commitment to expanding its business operations.
Conclusion
Considering Accenture PLC's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using 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.
