CINTAS CORP (CTAS) Stock Fundamental Analysis
USA - NASDAQ:CTAS - US1729081059 - Common Stock
199.71 USD
-2.66 (-1.31%)
199.283 USD
-0.43 (-0.21%)
CTAS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 84 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 would make CTAS suitable 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.
In the past 5 years CTAS has always 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 18.40% is amongst the best of the industry. CTAS outperforms 96.43% of its industry peers.
CTAS has a better Return On Equity (38.58%) than 95.24% of its industry peers.
The Return On Invested Capital of CTAS (23.03%) is better than 96.43% 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 10.60%.
The 3 year average ROIC (21.73%) for CTAS is below the current ROIC(23.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.4% | ||
| ROE | 38.58% | ||
| ROIC | 23.03% |
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's Profit Margin of 17.48% is amongst the best of the industry. CTAS outperforms 92.86% 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 22.82%, CTAS belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
CTAS's Operating Margin has improved in the last couple of years.
The Gross Margin of CTAS (50.04%) is better than 89.29% of its industry peers.
CTAS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.82% | ||
| PM (TTM) | 17.48% | ||
| GM | 50.04% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CTAS 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
An Altman-Z score of 13.14 indicates that CTAS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CTAS (13.14) is better than 94.05% of its industry peers.
The Debt to FCF ratio of CTAS is 1.38, which is an excellent value as it means it would take CTAS, only 1.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.38, CTAS belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that CTAS is somewhat dependend on debt financing.
CTAS has a Debt to Equity ratio (0.52) which is comparable to the rest of the 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 | 0.52 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 13.14 |
ROIC/WACC2.69
WACC8.56%
2.3 Liquidity
A Current Ratio of 2.09 indicates that CTAS has no problem at all paying its short term obligations.
CTAS has a better Current ratio (2.09) than 71.43% of its industry peers.
CTAS has a Quick Ratio of 1.82. 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 (1.82) is better than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.51% over the past year.
The Earnings Per Share has been growing by 16.84% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.75% in the past year.
Measured over the past years, CTAS shows a small growth in Revenue. The Revenue has been growing by 7.85% on average per year.
EPS 1Y (TTM)16.51%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%9.27%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%7.96%
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 Y12.16%
EPS Next 2Y11.19%
EPS Next 3Y10.81%
EPS Next 5Y10.27%
Revenue Next Year7.89%
Revenue Next 2Y7.52%
Revenue Next 3Y7.42%
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 45.29, the valuation of CTAS can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as CTAS.
When comparing the Price/Earnings ratio of CTAS to the average of the S&P500 Index (27.27), we can say CTAS is valued expensively.
CTAS is valuated quite expensively with a Price/Forward Earnings ratio of 40.38.
The rest of the industry has a similar Price/Forward Earnings ratio as CTAS.
CTAS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.29 | ||
| Fwd PE | 40.38 |
4.2 Price Multiples
CTAS's Enterprise Value to EBITDA is on the same level as the industry average.
CTAS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.8 | ||
| EV/EBITDA | 28.96 |
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)3.72
PEG (5Y)2.69
EPS Next 2Y11.19%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
CTAS has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 2.27, CTAS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, CTAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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
33.84% 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.
DP33.84%
EPS Next 2Y11.19%
EPS Next 3Y10.81%
199.71
-2.66 (-1.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.5%
Inst Owner Change-4.29%
Ins Owners1.71%
Ins Owner Change0.02%
Market Cap80.48B
Analysts70
Price Target226.92 (13.62%)
Short Float %2.12%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend1.51
Dividend Growth(5Y)18.49%
DP33.84%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.41%
Min EPS beat(2)-0.11%
Max EPS beat(2)4.93%
EPS beat(4)3
Avg EPS beat(4)5.82%
Min EPS beat(4)-0.11%
Max EPS beat(4)13.14%
EPS beat(8)6
Avg EPS beat(8)3.96%
EPS beat(12)10
Avg EPS beat(12)3.53%
EPS beat(16)14
Avg EPS beat(16)4.18%
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-0.39%
Revenue beat(8)0
Avg Revenue beat(8)-1.33%
Revenue beat(12)2
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)-0.55%
PT rev (1m)0.49%
PT rev (3m)4.86%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.29 | ||
| Fwd PE | 40.38 | ||
| P/S | 7.78 | ||
| P/FCF | 45.8 | ||
| P/OCF | 37.16 | ||
| P/B | 17.18 | ||
| P/tB | 82.59 | ||
| EV/EBITDA | 28.96 |
EPS(TTM)4.41
EY2.21%
EPS(NY)4.95
Fwd EY2.48%
FCF(TTM)4.36
FCFY2.18%
OCF(TTM)5.37
OCFY2.69%
SpS25.66
BVpS11.62
TBVpS2.42
PEG (NY)3.72
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.4% | ||
| ROE | 38.58% | ||
| ROCE | 28.84% | ||
| ROIC | 23.03% | ||
| ROICexc | 23.8% | ||
| ROICexgc | 44.78% | ||
| OM | 22.82% | ||
| PM (TTM) | 17.48% | ||
| GM | 50.04% | ||
| FCFM | 16.99% |
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-Score8
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 82.74% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.89% | ||
| Profit Quality | 97.21% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 13.14 |
F-Score8
WACC8.56%
ROIC/WACC2.69
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)16.51%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%9.27%
EPS Next Y12.16%
EPS Next 2Y11.19%
EPS Next 3Y10.81%
EPS Next 5Y10.27%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%7.96%
Revenue Next Year7.89%
Revenue Next 2Y7.52%
Revenue Next 3Y7.42%
Revenue Next 5Y7.57%
EBIT growth 1Y14.07%
EBIT growth 3Y14.13%
EBIT growth 5Y14.55%
EBIT Next Year30.92%
EBIT Next 3Y15.26%
EBIT Next 5Y12.98%
FCF growth 1Y5.19%
FCF growth 3Y10.65%
FCF growth 5Y10.61%
OCF growth 1Y4.14%
OCF growth 3Y12.1%
OCF growth 5Y10.89%