Examining the Quality Attributes of FACTSET RESEARCH SYSTEMS INC (NYSE:FDS).

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 course 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

• FDS has demonstrated significant revenue growth over the past 5 years, with a 8.95% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a robust ROIC excluding cash and goodwill at 198.0%, FDS showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• FDS demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.61, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• FDS exhibits impressive Profit Quality (5-year) with a 120.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• FDS has experienced impressive EBIT growth over the past 5 years, with 10.02% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• FDS has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

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.

We assign a fundamental rating of 5 out of 10 to FDS. FDS was compared to 224 industry peers in the Capital Markets industry. FDS scores excellent on profitability, but there are some minor concerns on its financial health. FDS is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of FDS for a complete fundamental analysis.

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.