+ Watch ACN
on My Watchlist
The Company is a management consulting, technology services and outsourcing organization.
Accenture is a high-quality, predictable blue chip so I like to compare it to the S&P 500. It is growing faster than the S&P 500 (which is projected to have negative revenue growth in 2015), it has much higher returns on equity than the S&P 500, and has a higher dividend yield than the S&P 500. Yet it is trading at a discount the to index after subtracting ACN's $7 in net cash per share. ACN returns 100% of FCF to investors in the form of dividends and buybacks. Given the 6-year bull run in the markets, I think a company like ACN, with a rock-solid balance sheet, multiple sources of moat, and an established and transparent capital-return program should have relatively limited downside and provide 10% plus annualized returns. Nothing wrong with that!
Div. (Yield) $2.04 (2.7%)
MF Inside Value
focus on cutting-edge technology needs of clients such as analytics, mobility, digital marketing, etc.
Great outsourcing company with impressive dividend growth.
I do NOT own this stock in real life, but am keeping it here for now, despite some concerns, as it has given me a decent gain so far. We'll see how long those concerns can be overridden. The main thing I don't like is that sales were basically flat last year. The earnings have been growing at 23% per annum, (approx.), but that can't go on forever if they don't start growing their sales. Their profit margin has been increasing for about 7 years now, so that is good. The earned-on-equity is stable at around 63%, so a good number. They have very little debt at the end of FY2013, so that is good. Their P/E is near historic norms, and their PEG ratio is low, so that makes the stock a pretty good buy here relatively. The stock pays a small dividend, which they raised in each of the past two years, so that is positive. The stock is trading in the midpoint of its range over the past couple of years, so that makes it relatively cheap also.So the big worry is sales. If the EPS growth can keep going, and their margin keeps expanding, then this stock could keep growing also, until the lack of sales growth starts really causing a headwind to growth. In the mean time, with the dividend and the trading range of the last couple of years, this stock could return 25% in a years time, maybe more. So I am willing to see where it goes for now.
boring but steady grower
- Great way to invest in Global Technology and IT Consulting Services and Solutions if you don't want all the other stuff IBM carries with it. - Not as glamorous as some other tech plays, but I expect demand for services to continually increase.
This is a buy and growing company
Magic Formula 2013/07/10Large cap
Earnings-related stock price plunge provides long term investors an opportunity to start a attractively-priced position in this well-oiled consulting company. This capital-light business has shown steady, consistent growth over the years and I see no reason to believe that this growth will slow significantly in the near future, despite sub-optimal results this quarter. High historical client retention rates and deep industry expertise are evidence of a competitive edge.
Good entry point on a market overreaction for a long-term hold
Buying the dip.
Classic market overreaction this morning.Accenture missed Rev guidance, largely due to weakness in Brazil and Europe and fewer big projects, which caused shares to drop 11%. I'm not sure why this miss was so shocking, really.. The current market uncertainty is influencing companies' IT/consulting spend, which effected ACN's short-term results.Looking bigger picture though, ACN is in a great position to outperform:- Their focus on data analytics and cloud computing are fast-growing markets to be competing in.- Their reputation is phenomenal. They focus is on long-term relationship building, which allows for recurring revenues and a sticky customer base. 92 of their top 100 clients have worked with them for longer than 10 years.- They are one of the few consulting firms to also offer to deploy IT and hardware solutions. This further embeds them with their clients' needs.- They have an asset-light model that allows them to return profits to shareholders. They have tripled their annual dividend in the last five years.Accenture has outperformed the market in 8 of the last 10 years. I would expect them to do more of the same in the future.
Reference PointROI: 45.0%Dividend Yield: 2.0%Total Debt/ Earnings: 0P/E: 17.5
For reference point and to allow for comments by others. As of the end of March, 2013.ROE 61.32%Trailing PE 19.17PB 9.83Div yield 1.50%As of Feb 28.
Dividend & Growth
Worked for 'em and like what they do. Decent dividend and excellent international growth opportunity. A tech-centric cost-effective consulting company? Sounds good to me.
health care opportunity
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