Should you consider COSTAR GROUP INC (NASDAQ:CSGP) for quality investing?

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 COSTAR GROUP INC (NASDAQ:CSGP) is suited for quality investing. Investors should of couse do their own research, but we spotted COSTAR GROUP INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• COSTAR GROUP INC has demonstrated significant revenue growth over the past 5 years, with a 17.72% 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 63.16%, COSTAR GROUP INC 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.
• The Debt/Free Cash Flow Ratio of COSTAR GROUP INC stands at 2.09, 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.
• COSTAR GROUP INC demonstrates consistent Profit Quality over the past 5 years, with a strong 130.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 21.01%, COSTAR GROUP INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• The EBIT 5-year growth of COSTAR GROUP INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

How does the complete fundamental picture look for NASDAQ:CSGP?

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.

CSGP gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 industry peers in the Real Estate Management & Development industry. Both the health and profitability get an excellent rating, making CSGP a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, CSGP is valued expensive at the moment. With these ratings, CSGP could be worth investigating further for quality investing!.

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

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

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.