In Focus – ACN

The purpose of our “In Focus” reports is to focus in on one company out of the 2,000 we cover, and to do a much more in-depth analysis of that one company. In this way, we can determine if that company deserves to be classified as one of the best stocks to buy now. In this report, we focus on Accenture Plc.

Background

Accenture Plc. (ACN) is a management consulting, technology services, and outsourcing company. Its business is organized into five operating groups: Products (25 %), Financial Services (21 %), Communications & High Tech (20 %), Health & Public Service (18 %), and Resources (16 %).

Accenture is headquartered in Dublin, Ireland. But it has operations in more than 200 cities and 53 countries.

Stock Fundamentals

There is not much to dislike about Accenture. The last time it experienced even a hiccup in its ability to generate sales, profits, and cash was during the market panic and beginning of the subsequent Great Recession in 2008. Since then it has performed stupendously.

Financially, it is one of the strongest companies we follow. Its growth has been strong, steady, and balanced. It has paid a dividend since 2006 and has increased it every year. It scores near the top in almost all the measures we study that reveal a firm’s efficiency and profitability.

Furthermore, despite its tremendous growth and huge size (market cap of almost $ 70 billion), we feel its future growth will be admirable. We are confident predicting that its future growth will be above the average expected growth of the roughly 2,000 companies we follow.

Perhaps the greatest feature of ACN is (despite the fact that it has a magnificent track record of generating profits and cash, and creating value) it is not wildly overpriced. Its P/E is roughly 20 (about average); and most of its other price multiples are close to (or even slightly below) average. An outstanding company at an average price is a screaming bargain.

We have said many times that it is better to buy a very good company at a little bit of a discount than to buy a lousy company at what seems like a huge discount. Accenture is a good example of that rule. Accenture is simply a very good company selling at a very reasonable price. It is one of the best stocks to buy now. And we highly recommend it.

Stat Sheet – Accenture Plc. 5/2/16

Ticker ACN
Industry Business Services
Price $ 114.40
Market Cap  $ 71,667
Dividend Yield 1.92
Dividend/CFOp 0.360
Equity/Assets 0.328
Average Equity/Assets 0.275
Financial Strength Above Average
Growth Prospects Above Average
Beta 1.07
Price Volatility Below Average
Stock Fundamentals A

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)

If you would like to see more research on the other 2,000 companies we follow, including the others we consider the best stocks to buy now, click the link below.

Best Stocks to Buy Now

If you would like to learn why it is so important to start with and focus dividend stocks, click the link below.

Best Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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In Focus – ACN

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