Summary: Watch
This is a step-by-step stock review to answer the question, is Accenture (ACN) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Accenture (ACN) stock a good buy?
1. Accenture Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 1989 as Andersen Consulting, a division of Arthur Andersen.
- 2001: Rebranded to Accenture after splitting from Arthur Andersen.
- Services: Specializes in consulting, technology services, and outsourcing.
- Global Reach: Operates in over 120 countries with clients across various industries.
- Innovation: Invests in emerging technologies like AI, blockchain, and cloud computing to drive digital transformation.
- Acquisitions: Frequently acquires companies to expand capabilities and market reach; notable acquisitions include Fjord (design), Symantec’s Cyber Security Services, and Duck Creek Technologies (insurance).
- Diversity: Committed to diversity and inclusion, aiming for gender-balanced workforce by 2025.
- Sustainability: Focuses on sustainability with initiatives to achieve net-zero carbon emissions by 2025.
- Workforce: Known for a strong emphasis on employee training and development, with extensive learning programs.
- Recognition: Consistently ranked among the top companies for innovation, employee satisfaction, and social responsibility.
- Financials: Publicly traded on the NYSE under the symbol ACN, with strong financial performance and growth.
Accenture’s history is characterized by its evolution from a consulting division to a global leader in professional services. With a focus on innovation, sustainability, and diversity, Accenture continues to drive transformation for clients worldwide, leveraging cutting-edge technology and deep industry expertise.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: overpriced
- Score: 44/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Accenture (ACN) makes money:
- Making money by providing consulting services to businesses, helping them improve efficiency, strategy, and operations.
- Earning revenue from technology services, including software development, IT infrastructure management, and digital transformation projects.
- Generating income from outsourcing services, such as business process outsourcing (BPO) and managed services.
- Offering industry-specific solutions and expertise tailored to clients in sectors like finance, healthcare, and telecommunications.
- Selling proprietary software products and platforms developed by Accenture.
- Charging fees for training and educational programs offered through Accenture Academy.
- Earning income from strategic acquisitions and partnerships that expand Accenture’s service offerings and market reach
Accenture uses these various streams to maximize their earnings and provide diverse services to moviegoers.
Here are a few of the other companies that Accenture has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Droga5
- Fjord
- Symantec’s Cyber Security Services
- Duck Creek Technologies
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Accenture (ACN) stacks up against other companies.
- Globant S.A. (GLOB) – 78
- Paymentus Holdings, Inc. (PAY) – 72
- Broadridge Financial Solutions, Inc.(BR) – 72
- N-able, Inc. (NABL) – 67
- Genpact Limited. (G) – 67
- Accenture plc. (ACN) – 44
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Julie Sweet became CEO of Accenture in 2019.
- She led Accenture through a successful digital transformation, focusing on innovation and technology.
- Sweet prioritized sustainability, committing Accenture to achieving net-zero emissions by 2025.
- She expanded Accenture’s cloud and cybersecurity services, driving growth in these key areas.
- Sweet emphasized diversity and inclusion, launching initiatives to improve workforce diversity.
- She strengthened Accenture’s position in the market through strategic acquisitions and partnerships.
- Sweet led the company to record financial performance, with significant increases in revenue and profitability.
- She enhanced employee experience by investing in training and development programs.
- Sweet focused on client success, improving customer satisfaction and retention rates.
- Under her leadership, Accenture continued to be recognized as a leader in consulting and professional services
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Accenture (ACN) is 68/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Accenture (ACN) stock a good buy?
Some of the top questions investors can have is Accenture (ACN) stock a good buy or should I buy Accenture (ACN) stock?
Investing in Accenture can be a wise choice. Accenture is a global leader in consulting, technology, and outsourcing services, with a strong reputation for innovation and client satisfaction. Its diverse portfolio and extensive industry expertise enable it to capitalize on emerging trends such as digital transformation and cloud services. Accenture’s robust financial performance, including consistent revenue growth and strong profitability, make it an attractive investment option. However, risks such as economic downturns and competition in the consulting industry should be considered. Conducting thorough research on Accenture’s market position and growth strategies is essential before making an investment decision.
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To truly know if Accenture is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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