183.67 USD
+1.51 (+0.83%)
183.67 USD
0 (0%)
Overall CTAS gets a fundamental rating of 7 out of 10. We evaluated CTAS against 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. These ratings could make CTAS a good candidate 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.
CTAS had positive earnings in each of the past 5 years.
In the past 5 years CTAS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.77%, CTAS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 better Return On Invested Capital (23.16%) than 97.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTAS is significantly above the industry average of 10.48%.
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
Looking at the Profit Margin, with a value of 17.49%, CTAS belongs to the top of the industry, outperforming 96.34% 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.
CTAS's Operating Margin has improved in the last couple of years.
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.
The number of shares outstanding for CTAS has been reduced compared to 1 year ago.
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 12.48. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.48, CTAS belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
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'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.
CTAS's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. CTAS outperforms 48.78% of its industry peers.
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 | 0.51 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 12.48 |
ROIC/WACC2.72
WACC8.53%
2.3 Liquidity
A Current Ratio of 2.24 indicates that CTAS has no problem at all paying its short term obligations.
CTAS's Current ratio of 2.24 is fine compared to the rest of the industry. CTAS outperforms 75.61% 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 better Quick ratio (1.94) than 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.89% over the past year.
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.
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
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 40.73, which means the current valuation is very expensive for CTAS.
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 25.65, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 33.59 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 34.45, CTAS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.73 | ||
| Fwd PE | 33.59 |
4.2 Price Multiples
60.98% of the companies in the same industry are cheaper than CTAS, based on the Enterprise Value to EBITDA ratio.
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 | 43.53 | ||
| EV/EBITDA | 25.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CTAS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.39
PEG (5Y)2.42
EPS Next 2Y11.36%
EPS Next 3Y10.95%
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 2.61.
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%
183.67
+1.51 (+0.83%)
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 Cap73.81B
Revenue(TTM)10.56B
Net Income(TTM)1.85B
Analysts70
Price Target223.35 (21.6%)
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 | 40.73 | ||
| Fwd PE | 33.59 | ||
| P/S | 6.99 | ||
| P/FCF | 43.53 | ||
| P/OCF | 34.92 | ||
| P/B | 15.52 | ||
| P/tB | 85.07 | ||
| EV/EBITDA | 25.84 |
EPS(TTM)4.51
EY2.46%
EPS(NY)5.47
Fwd EY2.98%
FCF(TTM)4.22
FCFY2.3%
OCF(TTM)5.26
OCFY2.86%
SpS26.27
BVpS11.83
TBVpS2.16
PEG (NY)3.39
PEG (5Y)2.42
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
WACC8.53%
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 Y12.01%
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.