182.16 USD
-3.64 (-1.96%)
182.16 USD
0 (0%)
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. CTAS is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make CTAS a good candidate 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.
Each year in the past 5 years CTAS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 18.77%, CTAS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 38.83%, CTAS belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
CTAS's Return On Invested Capital of 23.16% is amongst the best of the industry. CTAS outperforms 97.56% of its industry peers.
CTAS had an Average Return On Invested Capital over the past 3 years of 21.73%. This is significantly above the industry average of 10.48%.
The 3 year average ROIC (21.73%) for CTAS is below the current ROIC(23.16%), indicating increased profibility in the last year.
| 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 96.34% of its industry peers.
CTAS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.89%, CTAS belongs to the top 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.
With an excellent Gross Margin value of 50.10%, CTAS belongs to the best of the industry, outperforming 89.02% of the companies in the same industry.
CTAS's Gross Margin has improved in the last couple of years.
| 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.
CTAS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTAS has less shares outstanding
CTAS has a better debt/assets ratio than last year.
2.2 Solvency
CTAS has an Altman-Z score of 12.48. 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 12.48, CTAS belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
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.
CTAS's Debt to FCF ratio of 1.43 is amongst the best of the industry. CTAS outperforms 84.15% 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 48.78% 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 | 12.48 |
ROIC/WACC2.71
WACC8.55%
2.3 Liquidity
A Current Ratio of 2.24 indicates that CTAS has no problem at all paying its short term obligations.
The Current ratio of CTAS (2.24) is better than 75.61% of its industry peers.
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 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.
The Earnings Per Share has been growing by 16.84% on average over the past years. This is quite good.
CTAS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.21%.
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
The Earnings Per Share is expected to grow by 10.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.57% on average over the next years.
EPS Next Y12.01%
EPS Next 2Y11.36%
EPS Next 3Y10.95%
EPS Next 5Y10.27%
Revenue Next Year8.28%
Revenue Next 2Y7.7%
Revenue Next 3Y7.46%
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 40.39, which means the current valuation is very expensive for CTAS.
CTAS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.65, CTAS is valued quite expensively.
CTAS is valuated quite expensively with a Price/Forward Earnings ratio of 33.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTAS is on the same level as its industry peers.
CTAS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.39 | ||
| Fwd PE | 33.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTAS is valued a bit more expensive than 60.98% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CTAS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.17 | ||
| EV/EBITDA | 25.84 |
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)3.36
PEG (5Y)2.4
EPS Next 2Y11.36%
EPS Next 3Y10.95%
5. Dividend
5.1 Amount
CTAS has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 2.61, CTAS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, CTAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of CTAS grows each year by 18.49%, which is quite nice.
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
34.18% 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.
DP34.18%
EPS Next 2Y11.36%
EPS Next 3Y10.95%
182.16
-3.64 (-1.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.36%
Inst Owner Change0.14%
Ins Owners1.64%
Ins Owner Change0.07%
Market Cap73.20B
Revenue(TTM)10.56B
Net Income(TTM)1.85B
Analysts70
Price Target223.35 (22.61%)
Short Float %1.87%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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)-0.26%
PT rev (3m)-1.09%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.39 | ||
| Fwd PE | 33.31 | ||
| P/S | 6.93 | ||
| P/FCF | 43.17 | ||
| P/OCF | 34.63 | ||
| P/B | 15.39 | ||
| P/tB | 84.37 | ||
| EV/EBITDA | 25.84 |
EPS(TTM)4.51
EY2.48%
EPS(NY)5.47
Fwd EY3%
FCF(TTM)4.22
FCFY2.32%
OCF(TTM)5.26
OCFY2.89%
SpS26.27
BVpS11.83
TBVpS2.16
PEG (NY)3.36
PEG (5Y)2.4
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 | 12.48 |
F-Score7
WACC8.55%
ROIC/WACC2.71
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 3Y10.95%
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 3Y7.46%
Revenue Next 5Y7.57%
EBIT growth 1Y13.5%
EBIT growth 3Y14.13%
EBIT growth 5Y14.55%
EBIT Next Year30.87%
EBIT Next 3Y15.44%
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.