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 FACTSET RESEARCH SYSTEMS INC (NYSE:FDS) is suited for quality investing. Investors should of couse do their own research, but we spotted FACTSET RESEARCH SYSTEMS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Looking into the quality metrics of FACTSET RESEARCH SYSTEMS INC
FACTSET RESEARCH SYSTEMS INC has achieved substantial revenue growth over the past 5 years, with a 8.59% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
FACTSET RESEARCH SYSTEMS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 239.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
With a favorable Debt/Free Cash Flow Ratio of 2.97, FACTSET RESEARCH SYSTEMS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
The Profit Quality (5-year) of FACTSET RESEARCH SYSTEMS INC stands at 119.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
FACTSET RESEARCH SYSTEMS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 8.68%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
FACTSET RESEARCH SYSTEMS INC 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.
What else is there to say on the fundamentals of NYSE:FDS?
Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.
FDS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 206 industry peers in the Capital Markets industry. FDS scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, FDS is valued expensive at the moment.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
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.