QIAGEN N.V. (NYSE:QGEN) Passes the Caviar Cruise Quality Investment Screen

The Caviar Cruise screening method uses a structured process to find good investment chances using measurable financial numbers. This system, drawn from Luc Kroeze's writing on quality investing, looks at firms with steady sales and earnings increases, good profits on capital used, acceptable borrowing, and healthy cash generation. The method focuses on companies with lasting market positions and good operations that can provide lasting worth to owners.

Financial Performance Numbers

QIAGEN NV (NYSE:QGEN) shows a number of traits that fit the Caviar Cruise quality investing model. The firm's past results display good growth paths that satisfy the screen's basic needs:

• Sales growth (5Y CAGR): 7.82% (above the 5% minimum level)
• EBIT growth (5Y CAGR): 9.63% (above the 5% need)
• EBIT growth is higher than sales growth, showing better operational effectiveness

The firm's capacity to increase EBIT more quickly than sales shows operational scale and possible price strength, important traits the Caviar Cruise method looks for, as they imply the business can turn extra sales dollars into profit at a faster pace.

Profit and Capital Use

QIAGEN's return numbers show very good capital use, especially in the main number that quality investors focus on:

• ROIC without cash, goodwill, and intangibles: 46.44% (much higher than the 15% level)
• This very high return shows the firm creates large profits from its operational assets

The ROIC number acts as a foundation of the Caviar Cruise method because it shows how well management uses capital to create returns. QIAGEN's very high number suggests the firm has solid market positions and works in areas where it can earn good returns on new investments.

Financial Position and Cash Generation

The firm's balance sheet soundness and cash generation traits fit well with quality investing ideas:

• Debt-to-Free Cash Flow ratio: 2.91 years (under the 5-year highest level)
• Five-year average profit quality: 189.74% (much higher than the 75% minimum)

The debt-to-FCF ratio shows QIAGEN could pay back all its debt in under three years using current cash generation, giving financial room and lowering risk. The profit quality number, which shows how well accounting profits turn into real cash, indicates the firm creates much more free cash flow than its reported net income, a good sign of earnings soundness and financial strength.

Full Basic Review

According to the detailed basic review, QIAGEN gets 6 out of 10 total, with specific strong points in profit (8/10) and financial position (7/10). The report points out several good features:

• Very good profit margins that do better than most industry competitors
• Regular positive earnings and cash flow over many years
• Getting better operating margins and return on capital used
• Careful debt levels and good solvency numbers

While the value score of 6/10 implies the stock is not priced low, quality investors often accept reasonable prices for very good businesses. The firm's growth path stays positive, with experts expecting continued sales and earnings growth.

Industry Standing and Business System

QIAGEN's place in life science tools and services fits with several non-number aspects quality investors want. The firm's Sample to Insight products meet lasting needs in molecular testing and life science study, building a business with repeat sales traits. Their worldwide presence and technology combination across sample preparation, assay technologies, and bioinformatics create market barriers that support continued profit.

For investors wanting to look at other firms that meet the Caviar Cruise rules, the full screening results give more investment options that share these quality traits.

Disclaimer: This review is for information only and is not investment guidance, a suggestion, or a support of any security. Investors should do their own study and talk with money advisors before making investment choices. Past results do not ensure future outcomes.