Reasonable Growth, Debt Levels, and a High ROIC Make FACTSET RESEARCH SYSTEMS INC (NYSE:FDS) Appealing to Quality Investors.

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

What matters for quality investors.

• FACTSET RESEARCH SYSTEMS INC has shown strong performance in revenue growth over the past 5 years, with a 9.09% 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 357.0%, FACTSET RESEARCH SYSTEMS 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.
• The Debt/Free Cash Flow Ratio of FACTSET RESEARCH SYSTEMS INC stands at 2.76, 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 robust Profit Quality (5-year) ratio of 118.0%, FACTSET RESEARCH SYSTEMS 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.
• FACTSET RESEARCH SYSTEMS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 12.37%. 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, FACTSET RESEARCH SYSTEMS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NYSE:FDS

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, FDS scores 5 out of 10 in our fundamental rating. FDS was compared to 208 industry peers in the Capital Markets industry. While FDS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FDS is valied quite expensively at the moment, while it does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of FDS

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

Disclaimer

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.