Accenture plc (NYSE:ACN): Commentary On Fundamentals

Attractive stocks have exceptional fundamentals. In the case of Accenture plc (NYSE:ACN), there’s is a financially-healthy , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Accenture here.

Excellent balance sheet established dividend payer

Over the past year, ACN has grown its earnings by 10.6%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 40.9%, which is an optimistic signal for the future. ACN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ACN manages its cash and cost levels well, which is a key determinant of the company’s health. ACN seems to have put its debt to good use, generating operating cash levels of 203x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

ACN is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

Next Steps:

For Accenture, there are three fundamental aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for ACN’s future growth? Take a look at our free research report of analyst consensus for ACN’s outlook.

2. Valuation: What is ACN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ACN is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ACN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.