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 HIBBETT INC (NASDAQ:HIBB) is suited for quality investing. Investors should of course do their own research, but we spotted HIBBETT 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 HIBBETT INC
HIBBETT INC has shown strong performance in revenue growth over the past 5 years, with a 11.38% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
With a notable ROIC excluding cash and goodwill at 15.7%, HIBBETT INC 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.
The Debt/Free Cash Flow Ratio of HIBBETT INC stands at 0.06, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
HIBBETT INC exhibits impressive Profit Quality (5-year) with a 123.0% 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.
HIBBETT INC has consistently achieved strong EBIT growth over the past 5 years, with a 25.51% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
With EBIT 5-year growth outpacing its Revenue 5-year growth, HIBBETT INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
What is the full fundamental picture of NASDAQ:HIBB telling us.
Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.
HIBB gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 126 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making HIBB a very profitable company, without any liquidiy or solvency issues. HIBB may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make HIBB a good candidate for value and quality investing.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.