Reasonable Growth, Debt Levels, and a High ROIC Make DECISIONPOINT SYSTEMS INC/CA (NYSEARCA:DPSI) Appealing to Quality Investors.

In this article we will dive into DECISIONPOINT SYSTEMS INC/CA (NYSEARCA:DPSI) as a possible candidate for quality investing. Investors should always do their own research, but we noticed DECISIONPOINT SYSTEMS INC/CA showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of DECISIONPOINT SYSTEMS INC/CA

• DECISIONPOINT SYSTEMS INC/CA has shown strong performance in revenue growth over the past 5 years, with a 26.88% 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 111.0%, DECISIONPOINT SYSTEMS INC/CA 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 DECISIONPOINT SYSTEMS INC/CA stands at 4.36, 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.
• DECISIONPOINT SYSTEMS INC/CA exhibits impressive Profit Quality (5-year) with a 208.0% 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.
• The 5-year EBIT growth of DECISIONPOINT SYSTEMS INC/CA has been remarkable, with 58.13% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• The EBIT 5-year growth of DECISIONPOINT SYSTEMS INC/CA 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 NYSEARCA:DPSI?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 4 out of 10 to DPSI. DPSI was compared to 86 industry peers in the IT Services industry. There are concerns on the financial health of DPSI while its profitability can be described as average. DPSI has a valuation in line with the averages, but it does not seem to be growing.

Our latest full fundamental report of DPSI contains the most current fundamental analsysis.

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.