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.
Highlighting Notable Quality Metrics of NASDAQ:CTAS.
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.
The ROIC excluding cash and goodwill of CINTAS CORP stands at 52.11%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
CINTAS CORP maintains a healthy Debt/Free Cash Flow Ratio of 1.62, 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.
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.
What is the full fundamental picture of NASDAQ:CTAS telling us.
Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.
We assign a fundamental rating of 7 out of 10 to CTAS. CTAS was compared to 84 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. This makes CTAS very considerable for quality investing!
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.