Accenture Ltd is
a global leader in management and technology consulting services and
outsourcing solutions with 200 offices in 56 countries. The company has generated an impressive 50%+
return on equity over the last five years while growing earnings per share and
dividends 13-15% annually. ACN should be able to continue this trend as a
result:
(1) demand
outsourcing services are rising rapidly,
(2) Accenture’s
strong financial condition will allow it to continue its aggressive stock
buyback program,
(3) acquisitions.
Negatives:
(1) its large international business subjects
it to the risk of currency fluctuations,
(2) the global slowdown is impacting its
consulting services,
(3) highly competitive industry.
The company has
virtually no debt, is rated A++ by Value Line and pays a dividend providing a
2.4% yield.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2006
Ind Ave 1.9 11 35 NA
Debt/ EPS Down Net Value Line
Equity
ROE Since 2004 Margin Rating
Ind Ave 19 20 NA 12 NA
*ACN
has paid a dividend for 7 years.
Chart
Note:
ACN stock made great progress off its September 2008 low, quickly surpassing
the downtrend off its September 2008 high (straight red line) and the November
2008 trading high (green line). Long
term, the stock is in an uptrend (blue lines).
Intermediate term it is a trading range (purple lines). The Aggressive Growth Portfolio owns a full
position in ACN. The upper boundary of
its Buy Value Range is $55; the lower boundary of its Sell Half Range is $93.
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