ICF International Inc: A Strong Contender in the Business Services Industry with a GF Score of 89
ICF International Inc (NASDAQ:ICFI), a prominent player in the Business Services industry, is currently trading at $121.78 with a market capitalization of $2.29 billion. The stock has seen a gain of 3.56% today, despite a slight loss of -2.21% over the past four weeks. According to GuruFocus, ICFI has a GF Score of 89 out of 100, indicating good outperformance potential. The GF Score is a comprehensive stock performance ranking system that considers five key aspects of valuation: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Analysis
ICFI's Financial Strength Rank stands at 5/10. This rank measures the robustness of a company's financial situation, considering factors such as debt burden, debt to revenue ratio, and Altman Z-Score. ICFI's interest coverage is 3.75, indicating its ability to cover interest expenses with operating profits. Its debt to revenue ratio is 0.44, suggesting a moderate level of debt relative to its revenue. The Altman Z-Score of 2.70 indicates that the company is not in any immediate danger of bankruptcy.
Profitability Rank Analysis
The company's Profitability Rank is 8/10, reflecting its strong profitability. The Operating Margin is 6.08%, and the Piotroski F-Score is 5, indicating a healthy financial situation. The company has shown consistent profitability over the past 10 years, and its Predictability Rank is 5, suggesting a high likelihood of continued profitability.
Growth Rank Analysis
ICFI's Growth Rank is a perfect 10/10, indicating strong growth in terms of revenue and profitability. The 5-year revenue growth rate is 7.10%, and the 3-year revenue growth rate is 6.70%. The 5-year EBITDA growth rate is 6.80%, suggesting a steady increase in the company's earnings before interest, taxes, depreciation, and amortization.
GF Value Rank Analysis
The GF Value Rank of ICFI is 5/10, indicating a fair valuation of the stock. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
ICFI's Momentum Rank is 6/10, reflecting a moderate momentum in the stock price. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its competitors in the same industry, ICFI holds a strong position. Huron Consulting Group Inc (NASDAQ:HURN) has a GF Score of 74, CRA International Inc (NASDAQ:CRAI) matches ICFI with a GF Score of 89, and Franklin Covey Co (NYSE:FC) lags behind with a GF Score of 68.
Conclusion
In conclusion, ICF International Inc's overall GF Score of 89 suggests good outperformance potential. With strong profitability, robust growth, and fair valuation, ICFI presents an attractive investment opportunity. However, investors should also consider the company's moderate financial strength and momentum before making investment decisions.
This article first appeared on GuruFocus.
