FitLife Brands Inc (NASDAQ:FTLF) Stands Out as a High-Quality Pick in the Caviar Cruise Screen

The Caviar Cruise stock screen is built to find high-quality companies suitable for long-term investment, based on the ideas of quality investing. This method focuses on choosing businesses with solid fundamentals, lasting competitive edges, and steady profitability. The screen looks for companies with strong revenue and EBIT growth, high returns on invested capital (ROIC), reasonable debt levels, and good profit quality, ensuring that earnings turn into actual cash flow. These factors help investors discover firms that can grow value over time, making them good choices for a buy-and-hold approach.

FitLife Brands Inc (NASDAQ:FTLF) stands out as a strong pick from this screen, showing many traits that match quality investing principles.

Key Strengths of FitLife Brands (FTLF) for Quality Investors

1. High Profitability and ROIC

• ROIC (Excluding Cash & Goodwill): 269.8% – This measure is important in quality investing because it shows how well a company earns returns from its capital investments. FitLife’s ROIC is very high, suggesting excellent capital use and operational effectiveness.
• Operating Margin: 20.59% – This beats 97% of industry peers, showing strong pricing control and cost efficiency.
• Profit Margin: 13.85% – Better than 94% of competitors, highlighting the company’s ability to turn revenue into profit.

2. Solid Growth Path

• EBIT Growth (5Y CAGR): 39.3% – A key factor in the Caviar Cruise screen, this shows FitLife has steadily increased its core profitability at a notable pace.
• Revenue Growth (Past Year): 9.1% – While 5-year revenue data isn’t available, recent growth is stable, and analysts expect a 7.96% yearly revenue growth in the coming years.

3. Sound Financial Position

• Debt-to-Free Cash Flow: 1.74 – This ratio means FitLife could clear its debt in under two years using its current free cash flow, far below the screen’s limit of 5. Such low debt lowers financial risk and boosts stability.
• Altman-Z Score: 5.80 – Showing low bankruptcy risk and solid financial strength.

4. Strong Profit Quality

• 5-Year Avg. Profit Quality: 85.1% – This checks how well net income becomes free cash flow. FitLife’s high percentage means earnings are supported by real cash, not just accounting changes.

Fundamental Analysis Summary

FitLife Brands has a fundamental rating of 6/10, with top scores in profitability (8/10) and financial health (7/10). The company does well in ROIC, margins, and debt management while trading at a fair valuation (P/E of 12.98, lower than 83% of industry peers). For more details, see the full fundamental analysis report here.

Why FitLife Matches the Caviar Cruise Strategy

The Caviar Cruise screen looks for companies with lasting competitive edges, efficient capital use, and steady growth—qualities FitLife shows through its high ROIC, improving margins, and strong cash flow conversion. While future growth may be slower than past results, the company’s profitability and financial discipline make it a good fit for quality-focused portfolios.

Find More Quality Investment Options

For investors searching for other companies that meet the Caviar Cruise criteria, see the full screen results here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.