Should Quality-Oriented Investors Explore CINTAS CORP (NASDAQ:CTAS)?

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.

Why NASDAQ:CTAS may be interesting for quality investors.

• Over the past 5 years, CINTAS CORP has experienced impressive revenue growth, with 6.36% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• CINTAS CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 38.98% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 1.95, CINTAS CORP 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.
• CINTAS CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 105.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 12.7%, CINTAS CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• 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.

What is the full fundamental picture of NASDAQ:CTAS telling us.

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

Taking everything into account, CTAS scores 7 out of 10 in our fundamental rating. CTAS was compared to 80 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. 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 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.