Should you consider THERMON GROUP HOLDINGS INC (NYSE:THR) for quality investing?

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 THERMON GROUP HOLDINGS INC (NYSE:THR) is suited for quality investing. Investors should of couse do their own research, but we spotted THERMON GROUP HOLDINGS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:THR highlighted

• THERMON GROUP HOLDINGS INC has shown strong performance in revenue growth over the past 5 years, with a 7.38% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 21.4%, THERMON GROUP HOLDINGS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of THERMON GROUP HOLDINGS INC stands at 3.05, 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.
• THERMON GROUP HOLDINGS INC exhibits impressive Profit Quality (5-year) with a 532.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• THERMON GROUP HOLDINGS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 14.23%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• THERMON GROUP HOLDINGS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NYSE:THR

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, THR scores 6 out of 10 in our fundamental rating. THR was compared to 86 industry peers in the Electrical Equipment industry. THR has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on THR. These ratings would make THR suitable for value investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

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.