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 $327.97 and a daily gain of 0.91%, coupled with a three-month change of 4.32%, 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 developed by GuruFocus, evaluating stocks based on five key aspects of valuation from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Accenture PLC boasts a GF Score of 96, reflecting its strong potential for market leadership. The components of the GF Score for Accenture PLC are as follows:
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- 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, and operational services across various sectors. With a market cap of $205.44 billion and annual sales of $64.48 billion, the company's operating margin stands at 14.2%. Accenture's diverse services range from digital transformation to software system integration, catering to industries such as technology, financial services, and health. Employing nearly 500,000 people, Accenture operates in over 200 cities across 51 countries.
Financial Strength Breakdown
Accenture PLC's financial robustness is evident in its Financial Strength rating. The company's Interest Coverage ratio is an impressive 171.01, significantly above the benchmark set by Benjamin Graham. Additionally, with an Altman Z-Score of 7.19, Accenture demonstrates strong financial stability and a low risk of distress. The Debt-to-Revenue ratio of 0.07 further solidifies its prudent financial management.
Profitability and Growth Metrics
Accenture PLC excels in profitability, as indicated by its Profitability Rank. The company's Gross Margin has consistently improved, reaching 32.34% in 2023. This trend highlights Accenture's efficiency in converting revenue into profit. Furthermore, the company's Predictability Rank of 4.5 stars reflects its stable operational performance, enhancing investor confidence.
Accenture's commitment to growth is evident in its Growth Rank of 10/10. The company's 3-Year Revenue Growth Rate of 13.6% outperforms 60.66% of its industry peers. The consistent increase in EBITDA further underscores its growth capabilities.
Conclusion
Given Accenture PLC's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the firm's unparalleled position for potential 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.
