187.57 USD
-2.32 (-1.22%)
187.91 USD
+0.34 (+0.18%)
CTAS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 80 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. CTAS is valied quite expensively at the moment, while it does show a decent growth rate. This makes CTAS very considerable 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.
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 18.75%, CTAS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CTAS's Return On Equity of 38.79% is amongst the best of the industry. CTAS outperforms 96.30% of its industry peers.
CTAS has a better Return On Invested Capital (23.16%) than 97.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTAS is significantly above the industry average of 10.33%.
The last Return On Invested Capital (23.16%) for CTAS is above the 3 year average (21.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 38.79% | ||
| ROIC | 23.16% |
ROA(3y)17.06%
ROA(5y)15.93%
ROE(3y)36.52%
ROE(5y)35.33%
ROIC(3y)21.68%
ROIC(5y)20.31%
1.3 Margins
CTAS has a better Profit Margin (17.48%) than 97.53% of its industry peers.
In the last couple of years the Profit Margin of CTAS has grown nicely.
CTAS's Operating Margin of 22.89% is amongst the best of the industry. CTAS outperforms 97.53% of its industry peers.
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 88.89% 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) | 17.48% | ||
| GM | 50.1% |
OM growth 3Y3.91%
OM growth 5Y6.07%
PM growth 3Y3.71%
PM growth 5Y7.35%
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.
CTAS has less shares outstanding than it did 5 years ago.
CTAS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.73 indicates that CTAS is not in any danger for bankruptcy at the moment.
CTAS has a better Altman-Z score (12.73) than 95.06% 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.
With an excellent Debt to FCF ratio value of 1.43, CTAS belongs to the best of the industry, outperforming 83.95% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that CTAS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, CTAS perfoms like the industry average, outperforming 49.38% 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 | 12.73 |
ROIC/WACC2.68
WACC8.65%
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.
CTAS's Current ratio of 2.24 is fine compared to the rest of the industry. CTAS outperforms 75.31% 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 77.78% 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 11.63%, 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.
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)11.63%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%11.01%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%9.3%
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.
The Revenue is expected to grow by 7.57% on average over the next years.
EPS Next Y12.71%
EPS Next 2Y11.73%
EPS Next 3Y11.2%
EPS Next 5Y10.27%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y7.65%
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
With a Price/Earnings ratio of 40.51, CTAS can be considered very expensive at the moment.
CTAS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CTAS to the average of the S&P500 Index (26.39), we can say CTAS is valued expensively.
CTAS is valuated quite expensively with a Price/Forward Earnings ratio of 34.07.
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 valuation a bit more expensive than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.51 | ||
| Fwd PE | 34.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTAS is valued a bit more expensive than the industry average as 60.49% of the companies are valued more cheaply.
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 | 44.45 | ||
| EV/EBITDA | 26.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CTAS may justify a higher PE ratio.
PEG (NY)3.19
PEG (5Y)2.41
EPS Next 2Y11.73%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
CTAS has a yearly dividend return of 0.95%, which is pretty low.
Compared to an average industry Dividend Yield of 0.89, CTAS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.95, CTAS pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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
34.21% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
The dividend of CTAS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.21%
EPS Next 2Y11.73%
EPS Next 3Y11.2%
187.57
-2.32 (-1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.18%
Inst Owner Change0.17%
Ins Owners1.65%
Ins Owner Change0.07%
Market Cap75.38B
Revenue(TTM)10.34B
Net Income(TTM)1.84B
Analysts70.37
Price Target220.68 (17.65%)
Short Float %2.4%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend1.51
Dividend Growth(5Y)18.49%
DP34.21%
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)-0.97%
PT rev (3m)-2.75%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.51 | ||
| Fwd PE | 34.07 | ||
| P/S | 7.14 | ||
| P/FCF | 44.45 | ||
| P/OCF | 35.66 | ||
| P/B | 15.85 | ||
| P/tB | 86.88 | ||
| EV/EBITDA | 26.58 |
EPS(TTM)4.63
EY2.47%
EPS(NY)5.51
Fwd EY2.94%
FCF(TTM)4.22
FCFY2.25%
OCF(TTM)5.26
OCFY2.8%
SpS26.27
BVpS11.83
TBVpS2.16
PEG (NY)3.19
PEG (5Y)2.41
Graham Number35.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 38.79% | ||
| ROCE | 29.01% | ||
| ROIC | 23.16% | ||
| ROICexc | 23.55% | ||
| ROICexgc | 44.83% | ||
| OM | 22.89% | ||
| PM (TTM) | 17.48% | ||
| GM | 50.1% | ||
| FCFM | 16.06% |
ROA(3y)17.06%
ROA(5y)15.93%
ROE(3y)36.52%
ROE(5y)35.33%
ROIC(3y)21.68%
ROIC(5y)20.31%
ROICexc(3y)22.42%
ROICexc(5y)21.1%
ROICexgc(3y)45.31%
ROICexgc(5y)44.66%
ROCE(3y)27.16%
ROCE(5y)25.44%
ROICexgc growth 3Y4.19%
ROICexgc growth 5Y9.87%
ROICexc growth 3Y7.31%
ROICexc growth 5Y10.45%
OM growth 3Y3.91%
OM growth 5Y6.07%
PM growth 3Y3.71%
PM growth 5Y7.35%
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 | 91.91% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 12.73 |
F-Score7
WACC8.65%
ROIC/WACC2.68
Cap/Depr(3y)83.77%
Cap/Depr(5y)69.7%
Cap/Sales(3y)3.99%
Cap/Sales(5y)3.41%
Profit Quality(3y)98.91%
Profit Quality(5y)102.51%
High Growth Momentum
Growth
EPS 1Y (TTM)11.63%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%11.01%
EPS Next Y12.71%
EPS Next 2Y11.73%
EPS Next 3Y11.2%
EPS Next 5Y10.27%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%9.3%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y7.65%
Revenue Next 5Y7.57%
EBIT growth 1Y13.5%
EBIT growth 3Y13.89%
EBIT growth 5Y14.4%
EBIT Next Year31.04%
EBIT Next 3Y16.09%
EBIT Next 5Y12.98%
FCF growth 1Y34.88%
FCF growth 3Y10.65%
FCF growth 5Y10.61%
OCF growth 1Y30.07%
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 12.71% in the next year.