192.96 USD
-0.11 (-0.06%)
192.96 USD
0 (0%)
CTAS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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. While showing a medium growth rate, CTAS is valued expensive at the moment. With these ratings, CTAS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year CTAS was profitable.
- In the past year CTAS had a positive cash flow from operations.
- Each year in the past 5 years CTAS has been profitable.
- CTAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CTAS's Return On Assets of 18.67% is amongst the best of the industry. CTAS outperforms 100.00% of its industry peers.
- CTAS's Return On Equity of 42.46% is amongst the best of the industry. CTAS outperforms 96.25% of its industry peers.
- With an excellent Return On Invested Capital value of 24.58%, CTAS belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
- CTAS had an Average Return On Invested Capital over the past 3 years of 21.68%. This is significantly above the industry average of 10.58%.
- The last Return On Invested Capital (24.58%) for CTAS is above the 3 year average (21.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.67% | ||
| ROE | 42.46% | ||
| ROIC | 24.58% |
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
- With an excellent Profit Margin value of 17.52%, CTAS belongs to the best of the industry, outperforming 97.50% 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 22.98%, CTAS belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
- CTAS's Operating Margin has improved in the last couple of years.
- CTAS's Gross Margin of 50.25% is amongst the best of the industry. CTAS outperforms 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 | 22.98% | ||
| PM (TTM) | 17.52% | ||
| GM | 50.25% |
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
- CTAS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, CTAS has less shares outstanding
- Compared to 5 years ago, CTAS has less shares outstanding
- Compared to 1 year ago, CTAS has an improved debt to assets ratio.
2.2 Solvency
- CTAS has an Altman-Z score of 11.96. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
- CTAS has a better Altman-Z score (11.96) than 92.50% of its industry peers.
- The Debt to FCF ratio of CTAS is 1.67, which is an excellent value as it means it would take CTAS, only 1.67 years of fcf income to pay off all of its debts.
- CTAS has a Debt to FCF ratio of 1.67. This is amongst the best in the industry. CTAS outperforms 85.00% of its industry peers.
- CTAS has a Debt/Equity ratio of 0.54. This is a neutral value indicating CTAS is somewhat dependend on debt financing.
- The Debt to Equity ratio of CTAS (0.54) is comparable to the rest of the industry.
- Although CTAS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 11.96 |
ROIC/WACC2.82
WACC8.73%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that CTAS should not have too much problems paying its short term obligations.
- CTAS's Current ratio of 1.71 is fine compared to the rest of the industry. CTAS outperforms 63.75% of its industry peers.
- CTAS has a Quick Ratio of 1.49. This is a normal value and indicates that CTAS is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.49, CTAS is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
- CTAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.63%, which is quite good.
- CTAS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.84% yearly.
- The Revenue has grown by 8.60% in the past year. This is quite good.
- 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)8.6%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%9.3%
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 11.23% yearly.
- The Revenue is expected to grow by 8.20% on average over the next years. This is quite good.
EPS Next Y12.8%
EPS Next 2Y11.82%
EPS Next 3Y11.34%
EPS Next 5Y11.23%
Revenue Next Year8.74%
Revenue Next 2Y8.07%
Revenue Next 3Y7.75%
Revenue Next 5Y8.2%
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
- With a Price/Earnings ratio of 41.68, CTAS can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of CTAS is on the same level as its industry peers.
- CTAS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.30.
- A Price/Forward Earnings ratio of 34.99 indicates a quite expensive valuation of CTAS.
- The rest of the industry has a similar Price/Forward Earnings ratio as CTAS.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, CTAS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.68 | ||
| Fwd PE | 34.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CTAS is valued a bit more expensive than the industry average as 61.25% of the companies are valued more cheaply.
- 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 | 43.55 | ||
| EV/EBITDA | 26.94 |
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)3.26
PEG (5Y)2.47
EPS Next 2Y11.82%
EPS Next 3Y11.34%
5. Dividend
5.1 Amount
- CTAS has a yearly dividend return of 0.92%, which is pretty low.
- CTAS's Dividend Yield is a higher than the industry average which is at 0.83.
- With a Dividend Yield of 0.92, CTAS pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
- The dividend of CTAS is nicely growing with an annual growth rate of 18.49%!
- 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)18.49%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 34.69% 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.
DP34.69%
EPS Next 2Y11.82%
EPS Next 3Y11.34%
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 8 / 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 34.69%.