Is NASDAQ:CTAS suited for quality investing?

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.

Some of the quality metrics of NASDAQ:CTAS highlighted

• CINTAS CORP has shown strong performance in revenue growth over the past 5 years, with a 6.84% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 63.56%, 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.
• The Debt/Free Cash Flow Ratio of CINTAS CORP stands at 1.46, 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 consistently achieved strong EBIT growth over the past 5 years, with a 12.5% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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 Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

CTAS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium 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

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.