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Why NASDAQ:CTAS Stands Out as a Quality Stock.

By Mill Chart

Last update: Nov 29, 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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Highlighting Notable Quality Metrics of NASDAQ:CTAS.

  • Over the past 5 years, CINTAS CORP has experienced impressive revenue growth, with 6.84% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 63.56%, CINTAS CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • 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.
  • The 5-year EBIT growth of CINTAS CORP has been remarkable, with 12.5% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • The EBIT 5-year growth of CINTAS CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

A complete fundamental analysis of NASDAQ:CTAS

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.

Overall CTAS gets a fundamental rating of 7 out of 10. We evaluated CTAS against 84 industry peers in the Commercial Services & Supplies industry. CTAS gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, CTAS is valued expensive at the moment. These ratings could make CTAS a good candidate for quality investing.

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

More quality stocks can be found 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.

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