In this article we will dive into TAYLOR DEVICES INC (NASDAQ:TAYD) as a possible candidate for quality investing. Investors should always do their own research, but we noticed TAYLOR DEVICES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Looking into the quality metrics of TAYLOR DEVICES INC
TAYLOR DEVICES INC has shown strong performance in revenue growth over the past 5 years, with a 10.54% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
TAYLOR DEVICES INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 33.77% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
The Debt/Free Cash Flow Ratio of TAYLOR DEVICES INC stands at 0.0, 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.
With a favorable Profit Quality (5-year) ratio of 207.0%, TAYLOR DEVICES INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
TAYLOR DEVICES INC has consistently achieved strong EBIT growth over the past 5 years, with a 59.97% 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, TAYLOR DEVICES INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
Fundamental Analysis Observations
ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.
We assign a fundamental rating of 6 out of 10 to TAYD. TAYD was compared to 131 industry peers in the Machinery industry. TAYD has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TAYD is not valued too expensively and it also shows a decent growth rate.
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 in any way. 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.