Accenture PLC (ACN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With a current share price of $351.61, despite a slight daily decrease of 0.53%, Accenture PLC has enjoyed a significant three-month gain of 16.87%. A detailed evaluation using the GF Score indicates that Accenture PLC is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a composite score that ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Accenture PLC boasts a GF Score of 95, signaling strong future performance potential.
- Financial strength rank: 9/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 7/10
Understanding Accenture PLC's Business
Accenture PLC is a leading global IT-services firm with a market cap of $220.11 billion and annual sales of $64.90 billion. The company boasts an operating margin of 14.79% and provides a wide range of services including consulting, strategy, technology, and operations across multiple industries. Employing nearly 500,000 people, Accenture operates in over 200 cities across 51 countries, demonstrating its vast global presence and operational scale.
Financial Strength Breakdown
Accenture PLC's financial robustness is reflected in its impressive Interest Coverage ratio of 162.73 and an Altman Z-Score of 6.74, indicating a strong buffer against financial distress. The company's strategic debt management is evidenced by a Debt-to-Revenue ratio of 0.06, underscoring its prudent financial practices.
Profitability and Growth Metrics
Accenture PLC's profitability is highlighted by its consistent increase in Operating Margin over the past five years, with the latest figure standing at 14.79%. The company's Gross Margin has also shown improvement, reaching 32.61% in 2024. These metrics, combined with a Predictability Rank of 5 stars, enhance investor confidence in Accenture's operational efficiency and profitability.
Conclusion
Accenture PLC's exceptional financial strength, profitability, and growth metrics underscore its leading position in the IT services industry. With a high GF Score of 95, the company is well-equipped to outperform the market, making it an attractive option for investors seeking robust returns. For more insights into companies with strong GF Scores, consider exploring our 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.
