Why NASDAQ:CTAS qualifies as a quality stock.

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

Exploring Why NASDAQ:CTAS Holds Appeal for Quality Investors.

• CINTAS CORP has demonstrated significant revenue growth over the past 5 years, with a 6.36% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 41.28%, CINTAS CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a favorable Debt/Free Cash Flow Ratio of 2.03, CINTAS CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• The Profit Quality (5-year) of CINTAS CORP stands at 105.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• 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.
• CINTAS CORP 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.

Zooming in on the fundamentals.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall CTAS gets a fundamental rating of 7 out of 10. We evaluated CTAS against 84 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making CTAS a very profitable company, without any liquidiy or solvency issues. CTAS is valied quite expensively at the moment, while it does show a decent growth rate. This makes CTAS very considerable for quality investing!

Check the latest full fundamental report of CTAS for a complete fundamental analysis.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.