Analyzing the Quality Characteristics of THERMON GROUP HOLDINGS INC (NYSE:THR).

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 THERMON GROUP HOLDINGS INC (NYSE:THR) is suited for quality investing. Investors should of course do their own research, but we spotted THERMON GROUP HOLDINGS 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 THERMON GROUP HOLDINGS INC

• The 5-year revenue growth of THERMON GROUP HOLDINGS INC has been remarkable, with 7.38% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a notable ROIC excluding cash and goodwill at 23.22%, 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 demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.9, 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.
• With a robust Profit Quality (5-year) ratio of 655.0%, THERMON GROUP HOLDINGS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• THERMON GROUP HOLDINGS INC has experienced impressive EBIT growth over the past 5 years, with 14.23% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• THERMON GROUP HOLDINGS INC 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.

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall THR gets a fundamental rating of 6 out of 10. We evaluated THR against 86 industry peers in the Electrical Equipment industry. While THR has a great profitability rating, there are some minor concerns on its financial health. THR is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make THR a good candidate for growth investing.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.