Should you consider CINTAS CORP (NASDAQ:CTAS) 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 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.

What matters for quality investors.

• CINTAS CORP has demonstrated significant revenue growth over the past 5 years, with a 6.84% 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 61.96%, 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.
• CINTAS CORP maintains a healthy Debt/Free Cash Flow Ratio of 1.48, 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.
• With a favorable Profit Quality (5-year) ratio of 108.0%, CINTAS CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• CINTAS CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 12.5%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• 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.

Fundamental analysis of NASDAQ:CTAS

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.

CTAS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 83 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. While showing a medium growth rate, CTAS is valued expensive at the moment. These ratings would make CTAS suitable for quality investing!

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

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.