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

By Mill Chart

Last update: Feb 20, 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.

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 6.36% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • CINTAS CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 41.28% 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 2.03, 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.
  • With a favorable Profit Quality (5-year) ratio of 105.0%, CINTAS CORP 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.
  • 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.
  • 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.

Fundamental Analysis Observations

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 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. CTAS is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, CTAS could be worth investigating further 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.

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.



NASDAQ:CTAS (4/19/2024, 9:42:09 AM)


+1.25 (+0.19%)


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