CINTAS CORP (CTAS)
US1729081059 - Common Stock
CTAS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 83 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. CTAS is quite expensive at the moment. It does show a decent growth rate. These ratings would make CTAS suitable for quality investing!
1. Profitability
1.1 Basic Checks
CTAS had positive earnings in the past year.
In the past year CTAS had a positive cash flow from operations.
In the past 5 years CTAS has always been profitable.
In the past 5 years CTAS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.23%, CTAS belongs to the top of the industry, outperforming 98.80% of the companies in the same industry.
CTAS has a better Return On Equity (50.13%) than 100.00% of its industry peers.
The Return On Invested Capital of CTAS (29.56%) is better than 98.80% of its industry peers.
CTAS had an Average Return On Invested Capital over the past 3 years of 20.29%. This is significantly above the industry average of 10.00%.
The last Return On Invested Capital (29.56%) for CTAS is above the 3 year average (20.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.23% | ||
| ROE | 50.13% | ||
| ROIC | 29.56% |
ROA(3y)15.96%
ROA(5y)14.52%
ROE(3y)36.06%
ROE(5y)32.99%
ROIC(3y)20.29%
ROIC(5y)18.5%
1.3 Margins
With an excellent Profit Margin value of 16.66%, CTAS belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
In the last couple of years the Profit Margin of CTAS has grown nicely.
With an excellent Operating Margin value of 21.74%, CTAS belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
CTAS's Operating Margin has improved in the last couple of years.
CTAS has a Gross Margin of 49.09%. This is amongst the best in the industry. CTAS outperforms 86.75% of its industry peers.
In the last couple of years the Gross Margin of CTAS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.74% | ||
| PM (TTM) | 16.66% | ||
| GM | 49.09% |
OM growth 3Y3.33%
OM growth 5Y5.29%
PM growth 3Y1.71%
PM growth 5Y5.14%
GM growth 3Y1.59%
GM growth 5Y1.47%
2. Health
2.1 Basic Checks
CTAS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CTAS has more shares outstanding than it did 1 year ago.
CTAS has more shares outstanding than it did 5 years ago.
CTAS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.08 indicates that CTAS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.08, CTAS belongs to the top of the industry, outperforming 97.59% of the companies in the same industry.
CTAS has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.46, CTAS belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
CTAS has a Debt/Equity ratio of 0.50. This is a neutral value indicating CTAS is somewhat dependend on debt financing.
CTAS has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for CTAS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 13.08 |
ROIC/WACC3.28
WACC9.02%
2.3 Liquidity
CTAS has a Current Ratio of 1.53. This is a normal value and indicates that CTAS is financially healthy and should not expect problems in meeting its short term obligations.
CTAS's Current ratio of 1.53 is in line compared to the rest of the industry. CTAS outperforms 53.01% of its industry peers.
CTAS has a Quick Ratio of 1.33. This is a normal value and indicates that CTAS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.33, CTAS perfoms like the industry average, outperforming 51.81% of the companies in the same industry.
The current and quick ratio evaluation for CTAS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.39% over the past year.
The Earnings Per Share has been growing by 14.78% on average over the past years. This is quite good.
Looking at the last year, CTAS shows a quite strong growth in Revenue. The Revenue has grown by 8.86% in the last year.
CTAS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.84% yearly.
EPS 1Y (TTM)20.39%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%20.78%
Revenue 1Y (TTM)8.86%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%7.77%
3.2 Future
CTAS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.06% yearly.
Based on estimates for the next years, CTAS will show a small growth in Revenue. The Revenue will grow by 7.70% on average per year.
EPS Next Y14.22%
EPS Next 2Y12.35%
EPS Next 3Y11.63%
EPS Next 5Y11.06%
Revenue Next Year7.27%
Revenue Next 2Y7.21%
Revenue Next 3Y7.18%
Revenue Next 5Y7.7%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 45.05 indicates a quite expensive valuation of CTAS.
Compared to the rest of the industry, the Price/Earnings ratio of CTAS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.73, CTAS is valued quite expensively.
CTAS is valuated quite expensively with a Price/Forward Earnings ratio of 39.13.
CTAS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CTAS to the average of the S&P500 Index (22.83), we can say CTAS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.05 | ||
| Fwd PE | 39.13 |
4.2 Price Multiples
66.27% of the companies in the same industry are cheaper than CTAS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTAS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.56 | ||
| EV/EBITDA | 25.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTAS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CTAS may justify a higher PE ratio.
PEG (NY)3.17
PEG (5Y)3.05
EPS Next 2Y12.35%
EPS Next 3Y11.63%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, CTAS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.08, CTAS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, CTAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of CTAS decreases each year by -0.11%.
CTAS has been paying a dividend for at least 10 years, so it has a reliable track record.
CTAS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
27.36% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
DP27.36%
EPS Next 2Y12.35%
EPS Next 3Y11.63%
CINTAS CORP
NASDAQ:CTAS (12/20/2024, 8:04:16 PM)
After market: 186.94 0 (0%)186.94
+4.15 (+2.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners66.94%
Inst Owner Change287.67%
Ins Owners1.79%
Ins Owner Change0.23%
Market Cap75.39B
Analysts72
Price Target216.91 (16.03%)
Short Float %1.61%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Dividend Growth(5Y)-0.11%
DP27.36%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.11%
Min EPS beat(2)3.09%
Max EPS beat(2)13.14%
EPS beat(4)4
Avg EPS beat(4)5.7%
Min EPS beat(4)1.3%
Max EPS beat(4)13.14%
EPS beat(8)7
Avg EPS beat(8)3.27%
EPS beat(12)11
Avg EPS beat(12)3.82%
EPS beat(16)15
Avg EPS beat(16)5.28%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.26%
Min Revenue beat(4)-1.83%
Max Revenue beat(4)-0.37%
Revenue beat(8)1
Avg Revenue beat(8)-0.92%
Revenue beat(12)4
Avg Revenue beat(12)-0.35%
Revenue beat(16)4
Avg Revenue beat(16)-0.53%
PT rev (1m)2.24%
PT rev (3m)-72.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-74.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-74.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.05 | ||
| Fwd PE | 39.13 | ||
| P/S | 6.23 | ||
| P/FCF | 41.56 | ||
| P/OCF | 34.12 | ||
| P/B | 18.75 | ||
| P/tB | 226.24 | ||
| EV/EBITDA | 25.3 |
EPS(TTM)4.15
EY2.22%
EPS(NY)4.78
Fwd EY2.56%
FCF(TTM)4.5
FCFY2.41%
OCF(TTM)5.48
OCFY2.93%
SpS30
BVpS9.97
TBVpS0.83
PEG (NY)3.17
PEG (5Y)3.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.23% | ||
| ROE | 50.13% | ||
| ROCE | 37.12% | ||
| ROIC | 29.56% | ||
| ROICexc | 29.99% | ||
| ROICexgc | 63.56% | ||
| OM | 21.74% | ||
| PM (TTM) | 16.66% | ||
| GM | 49.09% | ||
| FCFM | 14.99% |
ROA(3y)15.96%
ROA(5y)14.52%
ROE(3y)36.06%
ROE(5y)32.99%
ROIC(3y)20.29%
ROIC(5y)18.5%
ROICexc(3y)20.86%
ROICexc(5y)19.2%
ROICexgc(3y)43.4%
ROICexgc(5y)41.05%
ROCE(3y)25.49%
ROCE(5y)23.23%
ROICexcg growth 3Y2.7%
ROICexcg growth 5Y9.17%
ROICexc growth 3Y7.28%
ROICexc growth 5Y9.85%
OM growth 3Y3.33%
OM growth 5Y5.29%
PM growth 3Y1.71%
PM growth 5Y5.14%
GM growth 3Y1.59%
GM growth 5Y1.47%
F-Score8
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 87.78% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.73% | ||
| Profit Quality | 89.97% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 13.08 |
F-Score8
WACC9.02%
ROIC/WACC3.28
Cap/Depr(3y)77.9%
Cap/Depr(5y)66.29%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.27%
Profit Quality(3y)102.17%
Profit Quality(5y)107.82%
High Growth Momentum
Growth
EPS 1Y (TTM)20.39%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%20.78%
EPS Next Y14.22%
EPS Next 2Y12.35%
EPS Next 3Y11.63%
EPS Next 5Y11.06%
Revenue 1Y (TTM)8.86%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%7.77%
Revenue Next Year7.27%
Revenue Next 2Y7.21%
Revenue Next 3Y7.18%
Revenue Next 5Y7.7%
EBIT growth 1Y41.14%
EBIT growth 3Y14.15%
EBIT growth 5Y12.5%
EBIT Next Year34.86%
EBIT Next 3Y16.21%
EBIT Next 5Y13.75%
FCF growth 1Y38.29%
FCF growth 3Y11.13%
FCF growth 5Y16.12%
OCF growth 1Y40.41%
OCF growth 3Y15.19%
OCF growth 5Y14.26%