Accenture PLC (ACN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $352.5 and a notable daily gain of 4.58%, coupled with a three-month increase of 15.59%, the company stands out in the market. A detailed evaluation using the GF Score indicates that Accenture PLC is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's financials. This system, which has been backtested from 2006 to 2021, suggests that 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 for market leadership.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 7/10
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 navigating their digital transformations. With a market cap of $220.8 billion and annual sales of $64.48 billion, Accenture operates in 200 cities across 51 countries, employing nearly 500,000 people. Its operating margin stands at 14.2%, highlighting its efficiency in managing operations.
Financial Strength Breakdown
Accenture PLC's financial robustness is evident through its impressive Interest Coverage ratio of 171.01, significantly surpassing the benchmark set by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 7.36 and a low Debt-to-Revenue ratio of 0.07 further affirm its financial stability and low risk of distress.
Profitability and Growth Metrics
Accenture PLC's profitability is consistently strong, with a Gross Margin that has remained stable over the past five years, reflecting its ability to efficiently convert revenue into profit. The company's Growth Rank is also exemplary, with a 3-Year Revenue Growth Rate of 13.6%, outperforming over 60% of its peers in the software industry. This is complemented by a significant increase in EBITDA, highlighting sustained growth capabilities.
Conclusion
Considering Accenture PLC's exceptional financial strength, profitability, and growth metrics, the GF Score underscores the company's unmatched position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies 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.
