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Analyzing the Quality Characteristics of HERITAGE-CRYSTAL CLEAN INC (NASDAQ:HCCI).

By Mill Chart

Last update: Sep 27, 2023

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

Highlighting Notable Quality Metrics of NASDAQ:HCCI.

  • HERITAGE-CRYSTAL CLEAN INC has achieved substantial revenue growth over the past 5 years, with a 14.15% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • HERITAGE-CRYSTAL CLEAN INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 15.47% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of HERITAGE-CRYSTAL CLEAN INC stands at 2.03, 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 130.0%, HERITAGE-CRYSTAL CLEAN 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.
  • HERITAGE-CRYSTAL CLEAN INC has consistently achieved strong EBIT growth over the past 5 years, with a 24.62% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • HERITAGE-CRYSTAL CLEAN INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NASDAQ:HCCI

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.

Taking everything into account, HCCI scores 6 out of 10 in our fundamental rating. HCCI was compared to 79 industry peers in the Commercial Services & Supplies industry. While HCCI has a great profitability rating, there are some minor concerns on its financial health. HCCI is not valued too expensively and it also shows a decent growth rate.

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

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

Keep in mind

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.

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