193.12 USD
+2.86 (+1.5%)
193.12 USD
0 (0%)
Overall CTAS gets a fundamental rating of 7 out of 10. We evaluated CTAS against 80 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 quite expensive at the moment. It does show a decent growth rate. This makes CTAS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
CTAS had positive earnings in the past year.
CTAS had a positive operating cash flow in the past year.
In the past 5 years CTAS has always been profitable.
Each year in the past 5 years CTAS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CTAS (18.75%) is better than 100.00% of its industry peers.
The Return On Equity of CTAS (38.79%) is better than 96.25% of its industry peers.
With an excellent Return On Invested Capital value of 23.16%, CTAS belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTAS is significantly above the industry average of 10.60%.
The 3 year average ROIC (21.68%) for CTAS is below the current ROIC(23.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 38.79% | ||
| ROIC | 23.16% |
ROA(3y)17.06%
ROA(5y)15.93%
ROE(3y)36.52%
ROE(5y)35.33%
ROIC(3y)21.68%
ROIC(5y)20.31%
1.3 Margins
Looking at the Profit Margin, with a value of 17.48%, CTAS belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
CTAS's Profit Margin has improved in the last couple of years.
CTAS's Operating Margin of 22.89% is amongst the best of the industry. CTAS outperforms 97.50% of its industry peers.
CTAS's Operating Margin has improved in the last couple of years.
CTAS has a better Gross Margin (50.10%) than 90.00% of its industry peers.
In the last couple of years the Gross Margin of CTAS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.89% | ||
| PM (TTM) | 17.48% | ||
| GM | 50.1% |
OM growth 3Y3.91%
OM growth 5Y6.07%
PM growth 3Y3.71%
PM growth 5Y7.35%
GM growth 3Y2.66%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CTAS is creating value.
Compared to 1 year ago, CTAS has less shares outstanding
CTAS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTAS has an improved debt to assets ratio.
2.2 Solvency
CTAS has an Altman-Z score of 12.86. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.86, CTAS belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
The Debt to FCF ratio of CTAS is 1.43, which is an excellent value as it means it would take CTAS, only 1.43 years of fcf income to pay off all of its debts.
CTAS has a Debt to FCF ratio of 1.43. This is amongst the best in the industry. CTAS outperforms 85.00% of its industry peers.
CTAS has a Debt/Equity ratio of 0.51. This is a neutral value indicating CTAS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, CTAS perfoms like the industry average, outperforming 48.75% of the companies in the same 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 | 0.51 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 12.86 |
ROIC/WACC2.68
WACC8.65%
2.3 Liquidity
A Current Ratio of 2.24 indicates that CTAS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.24, CTAS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.94 indicates that CTAS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.94, CTAS is doing good in the industry, outperforming 78.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.63% over the past year.
The Earnings Per Share has been growing by 16.84% on average over the past years. This is quite good.
CTAS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.75%.
CTAS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.85% yearly.
EPS 1Y (TTM)11.63%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%11.01%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%9.3%
3.2 Future
Based on estimates for the next years, CTAS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.27% on average per year.
CTAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.57% yearly.
EPS Next Y12.71%
EPS Next 2Y11.73%
EPS Next 3Y11.2%
EPS Next 5Y10.27%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y7.65%
Revenue Next 5Y7.57%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 41.71, the valuation of CTAS can be described as expensive.
CTAS's Price/Earnings ratio is in line with the industry average.
CTAS is valuated expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
CTAS is valuated quite expensively with a Price/Forward Earnings ratio of 35.08.
CTAS's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, CTAS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.71 | ||
| Fwd PE | 35.08 |
4.2 Price Multiples
CTAS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CTAS is more expensive than 60.00% of the companies in the same industry.
CTAS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.77 | ||
| EV/EBITDA | 26.95 |
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.
CTAS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)2.48
EPS Next 2Y11.73%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
CTAS has a yearly dividend return of 0.96%, which is pretty low.
CTAS's Dividend Yield is a higher than the industry average which is at 0.90.
With a Dividend Yield of 0.96, CTAS pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of CTAS is nicely growing with an annual growth rate of 18.49%!
CTAS has paid a dividend for at least 10 years, which is a reliable track record.
CTAS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)18.49%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
34.21% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
CTAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.21%
EPS Next 2Y11.73%
EPS Next 3Y11.2%
193.12
+2.86 (+1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners66.98%
Inst Owner Change0%
Ins Owners1.65%
Ins Owner Change0.07%
Market Cap77.61B
Revenue(TTM)10.34B
Net Income(TTM)1.84B
Analysts70.37
Price Target220.68 (14.27%)
Short Float %2.11%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend1.51
Dividend Growth(5Y)18.49%
DP34.21%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.48%
Min EPS beat(2)-0.85%
Max EPS beat(2)-0.11%
EPS beat(4)2
Avg EPS beat(4)2.33%
Min EPS beat(4)-0.85%
Max EPS beat(4)5.32%
EPS beat(8)6
Avg EPS beat(8)4.01%
EPS beat(12)9
Avg EPS beat(12)2.95%
EPS beat(16)13
Avg EPS beat(16)3.44%
Revenue beat(2)0
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-0.39%
Revenue beat(8)0
Avg Revenue beat(8)-1.28%
Revenue beat(12)1
Avg Revenue beat(12)-1.05%
Revenue beat(16)4
Avg Revenue beat(16)-0.58%
PT rev (1m)-1.2%
PT rev (3m)-1.46%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.71 | ||
| Fwd PE | 35.08 | ||
| P/S | 7.35 | ||
| P/FCF | 45.77 | ||
| P/OCF | 36.72 | ||
| P/B | 16.32 | ||
| P/tB | 89.45 | ||
| EV/EBITDA | 26.95 |
EPS(TTM)4.63
EY2.4%
EPS(NY)5.51
Fwd EY2.85%
FCF(TTM)4.22
FCFY2.18%
OCF(TTM)5.26
OCFY2.72%
SpS26.27
BVpS11.83
TBVpS2.16
PEG (NY)3.28
PEG (5Y)2.48
Graham Number35.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 38.79% | ||
| ROCE | 29.01% | ||
| ROIC | 23.16% | ||
| ROICexc | 23.55% | ||
| ROICexgc | 44.83% | ||
| OM | 22.89% | ||
| PM (TTM) | 17.48% | ||
| GM | 50.1% | ||
| FCFM | 16.06% |
ROA(3y)17.06%
ROA(5y)15.93%
ROE(3y)36.52%
ROE(5y)35.33%
ROIC(3y)21.68%
ROIC(5y)20.31%
ROICexc(3y)22.42%
ROICexc(5y)21.1%
ROICexgc(3y)45.31%
ROICexgc(5y)44.66%
ROCE(3y)27.16%
ROCE(5y)25.44%
ROICexgc growth 3Y4.19%
ROICexgc growth 5Y9.87%
ROICexc growth 3Y7.31%
ROICexc growth 5Y10.45%
OM growth 3Y3.91%
OM growth 5Y6.07%
PM growth 3Y3.71%
PM growth 5Y7.35%
GM growth 3Y2.66%
GM growth 5Y1.86%
F-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 82.77% | ||
| Cap/Sales | 3.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.35% | ||
| Profit Quality | 91.91% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 12.86 |
F-Score7
WACC8.65%
ROIC/WACC2.68
Cap/Depr(3y)83.77%
Cap/Depr(5y)69.7%
Cap/Sales(3y)3.99%
Cap/Sales(5y)3.41%
Profit Quality(3y)98.91%
Profit Quality(5y)102.51%
High Growth Momentum
Growth
EPS 1Y (TTM)11.63%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%11.01%
EPS Next Y12.71%
EPS Next 2Y11.73%
EPS Next 3Y11.2%
EPS Next 5Y10.27%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%9.3%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y7.65%
Revenue Next 5Y7.57%
EBIT growth 1Y13.5%
EBIT growth 3Y13.89%
EBIT growth 5Y14.4%
EBIT Next Year31.7%
EBIT Next 3Y15.74%
EBIT Next 5Y12.98%
FCF growth 1Y34.88%
FCF growth 3Y10.65%
FCF growth 5Y10.61%
OCF growth 1Y30.07%
OCF growth 3Y12.1%
OCF growth 5Y10.89%
CINTAS CORP / CTAS FAQ
Can you provide the ChartMill fundamental rating for CINTAS CORP?
ChartMill assigns a fundamental rating of 7 / 10 to CTAS.
What is the valuation status for CTAS stock?
ChartMill assigns a valuation rating of 2 / 10 to CINTAS CORP (CTAS). This can be considered as Overvalued.
Can you provide the profitability details for CINTAS CORP?
CINTAS CORP (CTAS) has a profitability rating of 10 / 10.
What is the financial health of CINTAS CORP (CTAS) stock?
The financial health rating of CINTAS CORP (CTAS) is 9 / 10.
Can you provide the dividend sustainability for CTAS stock?
The dividend rating of CINTAS CORP (CTAS) is 5 / 10 and the dividend payout ratio is 34.21%.