Few companies are more efficient with capital than Accenture (ACN -0.41%). The tech consulting firm is the 54th-largest public company in the world and is vital for new technological innovations, yet few investors know about it.

Accenture's strong growth, coupled with a generous capital return plan, sets the stage for a company that can solidly beat the markets over the next decade, helping investors further expedite their goals. Let's look at why Accenture is a top company and how it can help you become a millionaire.

Accenture utilizes its invested capital efficiently

The tech consulting business is vital in today's digital society. Few companies have the expertise to migrate to the cloud, establish robust cybersecurity protocols, or utilize artificial intelligence-powered automation. Accenture has a multitude of experts who can be harnessed to devise, implement, and sustain these solutions. With its broad customer base and vast industry knowledge, it's hard to imagine Accenture going away, so it's a relatively safe investment.

Accenture is also an excellent steward of capital.

Return on invested capital (ROIC) measures how much profit a company generates for each dollar invested in the business. The benchmark ROIC for the information services sector is 29.04% as of January 2022, per Aswath Damodaran, professor of finance at New York University. However, Accenture's ROIC metric has long been above this benchmark.

ACN Return on Invested Capital Chart

ACN Return on Invested Capital data by YCharts

In recent years, Accenture has returned to its lower levels and is slightly above the benchmark, which reflects how large of a company Accenture has become. Still, Accenture generates $30 for every $100 it reinvests in its business, which is much higher than almost every other industry benchmark.

This makes tech consulting a lucrative space to invest in, even if Accenture's ROIC isn't much better than the benchmark. However, Accenture has some growing headwinds in its future.

Currency effects have a prominent role to play in Accenture's financials

As the economy slows worldwide, companies will become more defensive in their spending. This could cause some businesses to pause on new projects or cut budgets, affecting Accenture's revenue. Additionally, Accenture is a worldwide business (it's based in Ireland, and 52% of its revenue comes from outside North America), so the strong U.S. dollar is also affecting its results. Per accounting rules, Accenture is required to report all of its revenue in U.S. dollars, showing slower growth despite the company not converting the currency to U.S. dollars.

Both effects were reflected in Accenture's first-quarter FY 2023 results (ending Nov. 30), with revenue only growing 5% year over year in U.S. dollars but rising 15% in local currency. North America was also its weakest region in Q1.

Region Revenue YOY Growth (in Local Currency) Makeup of Total Revenue
North America $7.6 billion 11% 48%
Europe $5.1 billion 17% 32%
Growth markets $3.1 billion 19% 20%

Data source: Accenture. YOY = year over Year.

However, this growth will likely be the high point for the year because management is guiding for 8% to 11% growth in local currency throughout FY 2023.

As for earnings, Accenture delivered earnings per share (EPS) of $3.08 in Q1, thanks to an operating margin increase. Management expects EPS to come in between $11.20 and $11.52 for FY 2023, but analysts' concensus estimate projects $11.46 per share in FY 2023.

However, looking out into FY 2024 and FY 2025, analysts are guiding for 9% and 10% growth, respectively, so EPS should accelerate from FY 2023's 7% growth. Neither of these projections is far off of Accenture's decade-long 13% EPS growth number. So why should you purchase a company with market-matching earnings growth? It's all about shareholder return.

Shareholder return reveals strong growth

Including dividends and buybacks when analyzing Accenture's long-term performance makes a considerable difference.

ACN Chart

ACN data by YCharts

Accenture's 1.5% dividend yield isn't overly impressive, but it has a tremendous long-term benefit if it's reinvested in the stock. Additionally, share repurchases increase its EPS metric by reducing the number of outstanding shares, amplifying the dividend over time. With Accenture planning to return at least $7.1 billion in cash to shareholders in FY 2023 (about 4.3% of its market cap), the compounding effect is significant. 

With Accenture trading at the low end of its five-year average price-to-earnings ratio (currently at 24 times earnings), now represents a great time to take a position in Accenture stock if you're willing to hold it for at least three to five years. While it won't deliver jaw-dropping growth, it's the sort of steady compounder every investor needs in their portfolio and can help investors steadily reach the goal of becoming a millionaire.