(W)e have tremendous financial strength, a rock solid balance sheet, strong cash flow and other financial metrics which is unique, powerful and distinctive. High performance is something we take seriously not only for our clients but for our company and our shareholders.

-Bill Green, CEO, Accenture

A few different people have recently posed questions to me along the lines of “what stocks are safe to own” with all the fear surrounding the market. While it’s difficult to say for sure with how broad the potential for financial problems to spill over into other industries, one company I follow that recently announced earnings (and didn’t see the stock drop 20%) was consulting firm Accenture (ACN).

The underlying story with Accenture continues to be the great cash flow the firm generates, which leads to a pristine balance sheet in a time when that becomes an extremely valuable asset. Accenture ended the quarter with more than $3.6 billion in cash and no debt, after turning out more than $900 million in FCF for the quarter. On a trailing twelve month basis, the stock still trades for a single digit multiple to free cash flow – roughly 8x, after backing out the cash on hand.

I see that multiple as being very low relative to the continued growth Accenture has delivered throughout the organization – be it geographically (organic double-digit growth in the Americas and Asia) or operationally (more than half of segments). Guidance was also very good, with a surge in orders for outsourcing support driving a 22% increase in bookings as companies look to Accenture to help cut and contain costs in a challenging economic environment.

If there is one specific near-term catalyst I had to pick with Accenture, it would be the expanding operating margins the company should realize because attrition rate (employee turnover) seems likely to head lower given the tough job environment. A paucity of jobs, particularly well-paying ones, should increase the chance that existing consultants who might otherwise leave for greener pastures stay on board; this will result in higher productivity levels and ultimately flow through to profits.

Regardless of whether it takes some incremental profitability improvements for Accenture to get the respect and multiple it deserves, the company continues to use its cash flow to diligently buy back stock. Because consulting is not a high capital expenditure industry, most of the free cash flow can be returned to shareholders via dividends (raised 19%) and buybacks ($2.3 billion spent in the last year). Lest it be left unsaid, these buybacks will inevitably translate to higher earnings per share, and if the market continues to ignore Accenture’s persistence on this front, they’ll eventually be able to take themselves private.

Bottom line here, the market doesn’t seem to be a buyer of Accenture’s great quarter and strong outlook. CEO Bill Green added later in the conference call that “Credibility means everything,” and in an environment where actions speak louder than words, the combination of continued profitability on top of a balance sheet that supports billions in share buybacks should not be ignored.