In this article we will dive into ACCENTURE PLC-CL A (NYSE:ACN) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ACCENTURE PLC-CL A showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Highlighting Notable Quality Metrics of ACN.
Over the past 5 years, ACN has experienced impressive revenue growth, with 8.47% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
The ROIC excluding cash and goodwill of ACN stands at 74.28%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
The Debt/Free Cash Flow Ratio of ACN stands at 0.53, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
With a robust Profit Quality (5-year) ratio of 134.0%, ACN highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
The 5-year EBIT growth of ACN has been remarkable, with 9.74% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
ACN demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.
What else is there to say on the fundamentals of ACN?
As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.
Overall ACN gets a fundamental rating of 7 out of 10. We evaluated ACN against 81 industry peers in the IT Services industry. ACN gets an excellent profitability rating and is at the same time showing great financial health properties. ACN has a decent growth rate and is not valued too expensively. With these ratings, ACN could be worth investigating further for quality investing!.
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.