Why the quality investor may take a look at CINTAS CORP (NASDAQ:CTAS).

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.

A Deep Dive into CINTAS CORP's Quality Metrics.

• CTAS has achieved substantial revenue growth over the past 5 years, with a 6.84% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 51.64%, CTAS 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.
• With a favorable Debt/Free Cash Flow Ratio of 1.43, CTAS showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a favorable Profit Quality (5-year) ratio of 108.0%, CTAS 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.
• CTAS 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.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, CTAS showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental analysis of CTAS

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall CTAS gets a fundamental rating of 6 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 quite expensive at the moment. It does show a decent growth rate. This makes CTAS very considerable 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 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.