Great companies typically have two things in common: One is a clearly defined, best-in-class portfolio of products or services that’s leveraged into industry-leading market share and profits. The other is the ability to know when it’s time to begin re-inventing the business model to avoid stagnation. By this definition, the management consulting, IT services and outsourcing giant Accenture Plc (NYSE: ACN) is a great company. Founded in 1989 (after a name change from Arthur Anderson Consulting), Accenture has evolved into an industry leader. Thanks to proven expertise in dozens of industries, the firm does business with three-quarters of the domestically-focused… Read More
Great companies typically have two things in common: One is a clearly defined, best-in-class portfolio of products or services that’s leveraged into industry-leading market share and profits. The other is the ability to know when it’s time to begin re-inventing the business model to avoid stagnation. By this definition, the management consulting, IT services and outsourcing giant Accenture Plc (NYSE: ACN) is a great company. Founded in 1989 (after a name change from Arthur Anderson Consulting), Accenture has evolved into an industry leader. Thanks to proven expertise in dozens of industries, the firm does business with three-quarters of the domestically-focused companies in the S&P 500. It has a large global footprint, too, with operations in 120 countries. Since 2010, annual revenues have risen by more than 40% to almost $33 billion and earnings are up nearly 80% to $4.71 per share. In the nine years since it initiated a dividend, Accenture increased its payout nearly seven-fold, to $2.04 a share. Shareholders have also enjoyed outsized capital gains. However, Accenture’s traditional businesses are fairly mature, portending a substantially slower pace of expansion in coming years. Accenture is already adapting, though, by moving aggressively into one of the highest-growth… Read More