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Why Quality Investors Should Delve into HERITAGE-CRYSTAL CLEAN INC (NASDAQ:HCCI) for Investment Opportunities.

By Mill Chart

Last update: Oct 19, 2023

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 HERITAGE-CRYSTAL CLEAN INC (NASDAQ:HCCI) is suited for quality investing. Investors should of course do their own research, but we spotted HERITAGE-CRYSTAL CLEAN INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Key Considerations for Quality Investors.

  • Over the past 5 years, HERITAGE-CRYSTAL CLEAN INC has experienced impressive revenue growth, with 14.15% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • 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 favorable Profit Quality (5-year) ratio of 130.0%, HERITAGE-CRYSTAL CLEAN INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • With a robust 5-year EBIT growth of 24.62%, HERITAGE-CRYSTAL CLEAN INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • HERITAGE-CRYSTAL CLEAN INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NASDAQ:HCCI

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 6 out of 10 to HCCI. HCCI was compared to 81 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 has a decent growth rate and is not valued too expensively.

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

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

Keep in mind

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.

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