CINTAS CORP (CTAS) Stock Fundamental Analysis
USA - NASDAQ:CTAS - US1729081059 - Common Stock
187.49 USD
-0.42 (-0.22%)
Taking everything into account, CTAS scores 7 out of 10 in our fundamental rating. CTAS was compared to 82 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. 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.
CTAS had a positive operating cash flow in the past year.
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 has a better Return On Assets (18.77%) than 100.00% of its industry peers.
CTAS's Return On Equity of 38.83% is amongst the best of the industry. CTAS outperforms 96.34% of its industry peers.
CTAS has a Return On Invested Capital of 23.16%. This is amongst the best in the industry. CTAS outperforms 96.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTAS is significantly above the industry average of 10.51%.
The last Return On Invested Capital (23.16%) for CTAS is above the 3 year average (21.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.77% | ||
| ROE | 38.83% | ||
| ROIC | 23.16% |
ROA(3y)17.08%
ROA(5y)15.94%
ROE(3y)36.57%
ROE(5y)35.36%
ROIC(3y)21.73%
ROIC(5y)20.34%
1.3 Margins
CTAS has a better Profit Margin (17.49%) than 95.12% of its industry peers.
CTAS's Profit Margin has improved in the last couple of years.
The Operating Margin of CTAS (22.89%) is better than 97.56% of its industry peers.
CTAS's Operating Margin has improved in the last couple of years.
The Gross Margin of CTAS (50.10%) is better than 89.02% 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) | 17.49% | ||
| GM | 50.1% |
OM growth 3Y4.13%
OM growth 5Y6.21%
PM growth 3Y3.84%
PM growth 5Y7.43%
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.
The number of shares outstanding for CTAS has been reduced compared to 1 year ago.
The number of shares outstanding for CTAS has been reduced compared to 5 years ago.
The debt/assets ratio for CTAS has been reduced compared to a year ago.
2.2 Solvency
CTAS has an Altman-Z score of 12.75. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
CTAS's Altman-Z score of 12.75 is amongst the best of the industry. CTAS outperforms 95.12% of its industry peers.
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 better Debt to FCF ratio (1.43) than 84.15% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that CTAS is somewhat dependend on debt financing.
CTAS's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. CTAS outperforms 50.00% of its industry peers.
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 | 0.51 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 12.75 |
ROIC/WACC2.7
WACC8.57%
2.3 Liquidity
CTAS has a Current Ratio of 2.24. This indicates that CTAS is financially healthy and has no problem in meeting 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 75.61% of the companies in the same industry.
CTAS has a Quick Ratio of 1.94. This is a normal value and indicates that CTAS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CTAS (1.94) is better than 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
CTAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.89%, which is quite good.
The Earnings Per Share has been growing by 16.84% on average over the past years. This is quite good.
The Revenue has grown by 8.21% 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)13.89%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%9.09%
Revenue 1Y (TTM)8.21%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%8.66%
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 Y12.01%
EPS Next 2Y11.36%
EPS Next 3Y10.87%
EPS Next 5Y10.27%
Revenue Next Year8.28%
Revenue Next 2Y7.7%
Revenue Next 3Y7.55%
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
The Price/Earnings ratio is 41.57, which means the current valuation is very expensive for CTAS.
CTAS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.91. CTAS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 34.28, which means the current valuation is very expensive for CTAS.
CTAS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.57. CTAS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.57 | ||
| Fwd PE | 34.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTAS is on the same level as its industry peers.
CTAS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.43 | ||
| EV/EBITDA | 26.63 |
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)3.46
PEG (5Y)2.47
EPS Next 2Y11.36%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, CTAS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.54, CTAS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CTAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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
CTAS pays out 34.18% of its income as dividend. This is a sustainable payout ratio.
The dividend of CTAS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.18%
EPS Next 2Y11.36%
EPS Next 3Y10.87%
NASDAQ:CTAS (11/14/2025, 1:13:06 PM)
187.49
-0.42 (-0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.36%
Inst Owner Change-1.1%
Ins Owners1.64%
Ins Owner Change0.07%
Market Cap75.35B
Revenue(TTM)10.56B
Net Income(TTM)1.85B
Analysts70
Price Target222.84 (18.85%)
Short Float %1.77%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend1.51
Dividend Growth(5Y)18.49%
DP34.18%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)-0.49%
PT rev (3m)0.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.57 | ||
| Fwd PE | 34.28 | ||
| P/S | 7.14 | ||
| P/FCF | 44.43 | ||
| P/OCF | 35.65 | ||
| P/B | 15.84 | ||
| P/tB | 86.84 | ||
| EV/EBITDA | 26.63 |
EPS(TTM)4.51
EY2.41%
EPS(NY)5.47
Fwd EY2.92%
FCF(TTM)4.22
FCFY2.25%
OCF(TTM)5.26
OCFY2.81%
SpS26.27
BVpS11.83
TBVpS2.16
PEG (NY)3.46
PEG (5Y)2.47
Graham Number34.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.77% | ||
| ROE | 38.83% | ||
| ROCE | 29.01% | ||
| ROIC | 23.16% | ||
| ROICexc | 23.55% | ||
| ROICexgc | 44.83% | ||
| OM | 22.89% | ||
| PM (TTM) | 17.49% | ||
| GM | 50.1% | ||
| FCFM | 16.06% |
ROA(3y)17.08%
ROA(5y)15.94%
ROE(3y)36.57%
ROE(5y)35.36%
ROIC(3y)21.73%
ROIC(5y)20.34%
ROICexc(3y)22.47%
ROICexc(5y)21.13%
ROICexgc(3y)44.71%
ROICexgc(5y)44.3%
ROCE(3y)27.22%
ROCE(5y)25.47%
ROICexgc growth 3Y2.84%
ROICexgc growth 5Y9.02%
ROICexc growth 3Y7.54%
ROICexc growth 5Y10.59%
OM growth 3Y4.13%
OM growth 5Y6.21%
PM growth 3Y3.84%
PM growth 5Y7.43%
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 | 91.83% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 12.75 |
F-Score7
WACC8.57%
ROIC/WACC2.7
Cap/Depr(3y)85.41%
Cap/Depr(5y)70.68%
Cap/Sales(3y)3.99%
Cap/Sales(5y)3.41%
Profit Quality(3y)99.33%
Profit Quality(5y)102.76%
High Growth Momentum
Growth
EPS 1Y (TTM)13.89%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%9.09%
EPS Next Y12.01%
EPS Next 2Y11.36%
EPS Next 3Y10.87%
EPS Next 5Y10.27%
Revenue 1Y (TTM)8.21%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%8.66%
Revenue Next Year8.28%
Revenue Next 2Y7.7%
Revenue Next 3Y7.55%
Revenue Next 5Y7.57%
EBIT growth 1Y13.5%
EBIT growth 3Y14.13%
EBIT growth 5Y14.55%
EBIT Next Year30.87%
EBIT Next 3Y15.39%
EBIT Next 5Y12.98%
FCF growth 1Y33.65%
FCF growth 3Y10.65%
FCF growth 5Y10.61%
OCF growth 1Y29.15%
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 of CINTAS CORP (CTAS) stock?
ChartMill assigns a valuation rating of 2 / 10 to CINTAS CORP (CTAS). This can be considered as Overvalued.
What is the profitability of CTAS stock?
CINTAS CORP (CTAS) has a profitability rating of 10 / 10.
How financially healthy is CINTAS CORP?
The financial health rating of CINTAS CORP (CTAS) is 9 / 10.
What is the expected EPS growth for CINTAS CORP (CTAS) stock?
The Earnings per Share (EPS) of CINTAS CORP (CTAS) is expected to grow by 12.01% in the next year.