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Should you consider NYSE:ACN for quality investing?

By Mill Chart

Last update: Sep 19, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ACCENTURE PLC-CL A (NYSE:ACN) is suited for quality investing. Investors should of couse do their own research, but we spotted ACCENTURE PLC-CL A showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • ACCENTURE PLC-CL A has achieved substantial revenue growth over the past 5 years, with a 11.23% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a notable ROIC excluding cash and goodwill at 92.31%, ACCENTURE PLC-CL A demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a Debt/Free Cash Flow Ratio of 0.01, ACCENTURE PLC-CL A exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • The Profit Quality (5-year) of ACCENTURE PLC-CL A stands at 136.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • ACCENTURE PLC-CL A has demonstrated consistent growth in EBIT over the past 5 years, with a strong 12.53%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • ACCENTURE PLC-CL A has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NYSE:ACN

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

ACN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. ACN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ACN is quite expensive at the moment. It does show a decent growth rate. These ratings would make ACN suitable for quality investing!

Check the latest full fundamental report of ACN for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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