Accenture: Strong Outlook, Solid Shareholder Returns And Reasonable Valuation

Nov. 11, 2022 12:12 PM ETAccenture plc (ACN)10 Comments
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Enterprising Investors
3.18K Followers

Summary

  • Accenture delivers growth through the economic cycle.
  • The company is active in fast-growing areas like the metaverse, technological transformation, and outsourcing.
  • The stock became more reasonably valued over the past year. The current price gives it a strong upside potential.
  • ACN rewards shareholders with a growing dividend and regular buybacks. Over FY2023, it plans to return $7.1B in cash or ~4% of its market cap.

Het Accenture Building in Grand Canal Quay, Dublin, Ierland.

noel bennett/iStock Editorial via Getty Images

Accenture (NYSE:ACN) is a growth machine with high free cash flow generation. It's reasonably valued and regularly returns cash to shareholders. Accenture's current price is an opportunity for long-term investors.

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Accenture FY2022 results one pager

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ACN Revenue 2008-2010

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ACN Share Price To S&P 500 2008-2010

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This article was written by

Enterprising Investors profile picture
3.18K Followers
In short: focus on free cash flow growth, GARP, value, thorough analysis, and a lot of common sense. I follow value investing principles and do my research through publicly accessible knowledge. I look for stocks trading below their actual value. Buying at the right time and holding shares for a long time leads to attractive profits. All expressions are my own. I do not represent a company. I cover stocks worldwide, mainly in North America and Europe. All my experience in stock picking comes from reading books and articles. Any investments you would take after a piece or discussions with me are your own responsibility. You should do your own due diligence before an investment.

Disclosure: I/we have a beneficial long position in the shares of ACN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Any investments you would take after a piece or discussions with me are your responsibility. Please do your own due diligence before an investment.

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