CINTAS CORP (CTAS) Stock Fundamental Analysis
USA - NASDAQ:CTAS - US1729081059 - Common Stock
189.29 USD
+1.19 (+0.63%)
We assign a fundamental rating of 7 out of 10 to CTAS. CTAS was compared to 82 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. These ratings could make CTAS a good candidate 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.
Each year in the past 5 years CTAS has been profitable.
In the past 5 years CTAS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CTAS (18.79%) is better than 98.78% of its industry peers.
With an excellent Return On Equity value of 38.86%, CTAS belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
CTAS has a better Return On Invested Capital (23.16%) than 96.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTAS is significantly above the industry average of 10.38%.
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 | 18.79% | ||
| ROE | 38.86% | ||
| 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
With an excellent Profit Margin value of 17.51%, CTAS belongs to the best of the industry, outperforming 95.12% 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 22.89%, CTAS belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
In the last couple of years the Operating Margin of CTAS has grown nicely.
CTAS's Gross Margin of 50.10% is amongst the best of the industry. CTAS outperforms 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) | 17.51% | ||
| 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.
CTAS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTAS has less shares outstanding
The debt/assets ratio for CTAS has been reduced compared to a year ago.
2.2 Solvency
CTAS has an Altman-Z score of 12.76. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
CTAS has a better Altman-Z score (12.76) than 93.90% of its industry peers.
CTAS has a debt to FCF ratio of 1.43. This is a very positive value and a sign of high solvency as it would only need 1.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.43, CTAS belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
CTAS has a Debt/Equity ratio of 0.51. This is a neutral value indicating CTAS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, CTAS is in line with its industry, outperforming 52.44% of the companies in the same 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 | 0.51 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 12.76 |
ROIC/WACC2.72
WACC8.51%
2.3 Liquidity
A Current Ratio of 2.24 indicates that CTAS has no problem at all paying its short term obligations.
CTAS has a better Current ratio (2.24) than 74.39% of its industry peers.
A Quick Ratio of 1.94 indicates that CTAS should not have too much problems paying its short term obligations.
CTAS has a Quick ratio of 1.94. This is in the better half of the industry: CTAS outperforms 79.27% 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.
Measured over the past years, CTAS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.84% on average per year.
Looking at the last year, CTAS shows a quite strong growth in Revenue. The Revenue has grown by 8.21% in the last year.
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
CTAS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.27% yearly.
CTAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.57% yearly.
EPS Next Y12.15%
EPS Next 2Y11.2%
EPS Next 3Y10.87%
EPS Next 5Y10.27%
Revenue Next Year8.28%
Revenue Next 2Y7.73%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CTAS is valuated quite expensively with a Price/Earnings ratio of 41.97.
The rest of the industry has a similar Price/Earnings ratio as CTAS.
CTAS is valuated expensively when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 34.71, CTAS can be considered very expensive at the moment.
CTAS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, CTAS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.97 | ||
| Fwd PE | 34.71 |
4.2 Price Multiples
CTAS's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CTAS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.86 | ||
| EV/EBITDA | 26.66 |
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)3.45
PEG (5Y)2.49
EPS Next 2Y11.2%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, CTAS is not a good candidate for dividend investing.
CTAS's Dividend Yield is a higher than the industry average which is at 2.51.
With a Dividend Yield of 0.98, CTAS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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
CTAS pays out 34.15% of its income as dividend. This is a sustainable payout ratio.
CTAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.15%
EPS Next 2Y11.2%
EPS Next 3Y10.87%
NASDAQ:CTAS (10/20/2025, 9:31:10 AM)
189.29
+1.19 (+0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.36%
Inst Owner Change0.13%
Ins Owners1.64%
Ins Owner Change0.04%
Market Cap76.07B
Analysts70.77
Price Target223.94 (18.31%)
Short Float %2.33%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend1.51
Dividend Growth(5Y)18.49%
DP34.15%
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)-1.32%
PT rev (3m)1.06%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.1%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.97 | ||
| Fwd PE | 34.71 | ||
| P/S | 7.21 | ||
| P/FCF | 44.86 | ||
| P/OCF | 35.99 | ||
| P/B | 16 | ||
| P/tB | 72.66 | ||
| EV/EBITDA | 26.66 |
EPS(TTM)4.51
EY2.38%
EPS(NY)5.45
Fwd EY2.88%
FCF(TTM)4.22
FCFY2.23%
OCF(TTM)5.26
OCFY2.78%
SpS26.27
BVpS11.83
TBVpS2.61
PEG (NY)3.45
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.79% | ||
| ROE | 38.86% | ||
| ROCE | 29.01% | ||
| ROIC | 23.16% | ||
| ROICexc | 23.55% | ||
| ROICexgc | 43.04% | ||
| OM | 22.89% | ||
| PM (TTM) | 17.51% | ||
| 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%
ROICexcg growth 3Y2.84%
ROICexcg 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 | 91.75% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 12.76 |
F-Score7
WACC8.51%
ROIC/WACC2.72
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 Y12.15%
EPS Next 2Y11.2%
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 2Y7.73%
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%