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CINTAS CORP (NASDAQ:CTAS) can be considered a quality stock. Here's why.

By Mill Chart

Last update: Sep 23, 2024

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.


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A Deep Dive into CINTAS CORP's Quality Metrics.

  • 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.
  • The ROIC excluding cash and goodwill of CINTAS CORP stands at 61.96%, 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.
  • The Debt/Free Cash Flow Ratio of CINTAS CORP stands at 1.48, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • CINTAS CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 108.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • CINTAS CORP has experienced impressive EBIT growth over the past 5 years, with 12.5% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • CINTAS CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for NASDAQ:CTAS?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall CTAS gets a fundamental rating of 7 out of 10. We evaluated CTAS against 83 industry peers in the Commercial Services & Supplies industry. CTAS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CTAS is not valued too expensively and it also shows a decent growth rate. These ratings would make CTAS suitable for quality investing!

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

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

Keep in mind

This article should in no way be interpreted as advice. 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.

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