Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Visitors look at devices at Accenture stand at the Mobile World Congress in Barcelona, February 26, 2013. (ALBERT GEA/Reuters)

Visitors look at devices at Accenture stand at the Mobile World Congress in Barcelona, February 26, 2013.

(ALBERT GEA/Reuters)

Research Report

'Stalwart' Accenture impresses investing gurus Add to ...

Validea’s pick of the week provides a detailed report on a company that scores well in the stock-screening service’s model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Validea.ca. Try it.

More Related to this Story

Ireland-based Accenture Plc is a global firm providing management consulting, technology and outsourcing services, with offices and operations in 56 countries. Its market cap is $51-billion (U.S.)

Accenture has grown EPS at an 18-per-cent pace over the long term (using the average of the three-, four-, and five-year EPS growth rates). That and its high sales ($30B ttm) make it a "stalwart" according to the Peter Lynch-based model. The company trades for 15.1 times ttm EPS and has a 2.5-per-cent dividend, making for a 0.73 yield-adjusted PE-to-growth ratio, part of why the Lynch model has strong interest.

Accenture has a debt/equity ratio of just 0.5 per cent, another reason the Lynch approach likes it.

It has averaged a return on equity of 48 per cent over the past decade, part of why it gets strong interest from the Warren Buffett-based model. Accenture has increased EPS in all but one year of the past decade, which the Buffett model also likes. It has averaged a 17.3-per-cent return on retained earnings (those not paid out as dividends) over past decade, impressing the Buffett model.

The company's 12-per-cent profit margins are six times the industry average.

It has a 9-per-cent earnings yield, part of why the Joel Greenblatt-based model has some interest. And its 59-per-cent return on total capital also impresses the Greenblatt approach.

John Reese is long ACN.

Click here for a complete breakdown of Validea's investing guru report.

Read other research reports here.

Follow us on Twitter: @GlobeInvestor


Accenture plc

5 Year Performance

Add ACN-N to your Watchlist Chart for ACN-N
ACN-N 79.77 -0.87 -1.079 %

View interactive chart

Security Price Change
ACN-N Accenture plc 79.77 -0.87
-1.079 %
Add to watchlist
Live Discussion of ACN on StockTwits
More Discussion on ACN-N


In the know

Most popular video »


More from The Globe and Mail

Most Popular Stories