Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CORVEL CORP (NASDAQ:CRVL) is suited for quality investing. Investors should of course do their own research, but we spotted CORVEL CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Why NASDAQ:CRVL may be interesting for quality investors.
Over the past 5 years, CORVEL CORP has experienced impressive revenue growth, with 5.95% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
With a notable ROIC excluding cash and goodwill at 62.08%, CORVEL CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
CORVEL CORP maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
With a robust Profit Quality (5-year) ratio of 100.0%, CORVEL CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
CORVEL CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 9.1%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
CORVEL CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.
Zooming in on the fundamentals.
At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.
Taking everything into account, CRVL scores 6 out of 10 in our fundamental rating. CRVL was compared to 109 industry peers in the Health Care Providers & Services industry. Both the health and profitability get an excellent rating, making CRVL a very profitable company, without any liquidiy or solvency issues. CRVL does not seem to be growing, but still is valued expensively.
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.