In this article we will dive into THERMON GROUP HOLDINGS INC (NYSE:THR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed THERMON GROUP HOLDINGS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
A Deep Dive into THERMON GROUP HOLDINGS INC's Quality Metrics.
THERMON GROUP HOLDINGS INC has achieved substantial revenue growth over the past 5 years, with a 7.38% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
With a notable ROIC excluding cash and goodwill at 21.87%, THERMON GROUP HOLDINGS 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.
THERMON GROUP HOLDINGS INC maintains a healthy Debt/Free Cash Flow Ratio of 2.84, 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.
THERMON GROUP HOLDINGS INC exhibits impressive Profit Quality (5-year) with a 655.0% 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.
THERMON GROUP HOLDINGS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 14.23%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
With EBIT 5-year growth outpacing its Revenue 5-year growth, THERMON GROUP HOLDINGS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
How does the complete fundamental picture look for NYSE:THR?
ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.
Taking everything into account, THR scores 6 out of 10 in our fundamental rating. THR was compared to 87 industry peers in the Electrical Equipment industry. While THR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. THR has a decent growth rate and is not valued too expensively.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.