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Why Quality-Oriented Investors Should Consider NASDAQ:CTAS.

By Mill Chart

Last update: Jan 4, 2024

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

Looking into the quality metrics of CINTAS CORP

  • The 5-year revenue growth of CINTAS CORP has been remarkable, with 6.36% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • CINTAS CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 38.98% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • CINTAS CORP maintains a healthy Debt/Free Cash Flow Ratio of 1.95, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • CINTAS CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 105.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • With a robust 5-year EBIT growth of 12.7%, CINTAS CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, CINTAS CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of NASDAQ:CTAS telling us.

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.

Overall CTAS gets a fundamental rating of 7 out of 10. We evaluated CTAS against 81 industry peers in the Commercial Services & Supplies industry. CTAS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CTAS is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, CTAS could be worth investigating further for quality investing!.

Our latest full fundamental report of CTAS contains the most current fundamental analsysis.

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

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.

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