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Reasonable Growth, Debt Levels, and a High ROIC Make CINTAS CORP (NASDAQ:CTAS) Appealing to Quality Investors.

By Mill Chart

Last update: May 15, 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

  • 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.
  • With a robust ROIC excluding cash and goodwill at 52.11%, 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 1.62, 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.
  • With a robust Profit Quality (5-year) ratio of 105.0%, CINTAS CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • CINTAS CORP has consistently achieved strong EBIT growth over the past 5 years, with a 12.7% 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.

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

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

We assign a fundamental rating of 7 out of 10 to CTAS. CTAS was compared to 85 industry peers in the Commercial Services & Supplies industry. CTAS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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!.

Our latest full fundamental report of CTAS contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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CINTAS CORP

NASDAQ:CTAS (5/29/2024, 7:00:00 PM)

After market: 663.52 0 (0%)

663.52

-6.81 (-1.02%)

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