193.12 USD
+2.86 (+1.5%)
193.12 USD
0 (0%)
Taking everything into account, CTAS scores 7 out of 10 in our fundamental rating. CTAS was compared to 80 industry peers in the Commercial Services & Supplies industry. CTAS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CTAS is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, CTAS could be worth investigating further 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 18.75% is amongst the best of the industry. CTAS outperforms 100.00% of its industry peers.
CTAS has a better Return On Equity (38.79%) than 96.25% of its industry peers.
The Return On Invested Capital of CTAS (23.16%) is better than 96.25% 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 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's Profit Margin of 17.48% is amongst the best of the industry. CTAS outperforms 97.50% of its industry peers.
In the last couple of years the Profit Margin of CTAS has grown nicely.
The Operating Margin of CTAS (22.89%) is better than 97.50% of its industry peers.
CTAS's Operating Margin has improved in the last couple of years.
CTAS's Gross Margin of 50.10% is amongst the best of the industry. CTAS outperforms 90.00% of its industry peers.
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
CTAS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CTAS has been reduced compared to 1 year ago.
The number of shares outstanding for CTAS has been reduced compared to 5 years ago.
The debt/assets ratio for CTAS has been reduced compared to a year ago.
2.2 Solvency
CTAS has an Altman-Z score of 12.86. 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 12.86, CTAS belongs to the top of the industry, outperforming 95.00% 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.
With an excellent Debt to FCF ratio value of 1.43, CTAS belongs to the best of the industry, outperforming 85.00% 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.
CTAS's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. CTAS outperforms 48.75% 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 | 12.86 |
ROIC/WACC2.68
WACC8.65%
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 75.00% 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.
CTAS's Quick ratio of 1.94 is fine compared to the rest of the industry. CTAS outperforms 78.75% 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 11.63% 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.
Looking at the last year, CTAS shows a small growth in Revenue. The Revenue has grown by 7.75% in the last 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.
Based on estimates for the next years, CTAS will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 41.71, which means the current valuation is very expensive for CTAS.
CTAS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.19, CTAS is valued quite expensively.
With a Price/Forward Earnings ratio of 35.08, CTAS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as CTAS.
The average S&P500 Price/Forward Earnings ratio is at 23.88. CTAS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.71 | ||
| Fwd PE | 35.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTAS is valued a bit more expensive than 60.00% of the companies in the same industry.
CTAS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.77 | ||
| EV/EBITDA | 26.95 |
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)3.28
PEG (5Y)2.48
EPS Next 2Y11.73%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, CTAS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.89, CTAS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.90, CTAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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
CTAS pays out 34.21% of its income as dividend. This is a 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%
193.12
+2.86 (+1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners66.98%
Inst Owner Change0%
Ins Owners1.65%
Ins Owner Change0.07%
Market Cap77.61B
Revenue(TTM)10.34B
Net Income(TTM)1.84B
Analysts70.37
Price Target220.68 (14.27%)
Short Float %2.11%
Short Ratio3.27
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-DateN/A
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)-1.2%
PT rev (3m)-1.46%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.71 | ||
| Fwd PE | 35.08 | ||
| P/S | 7.35 | ||
| P/FCF | 45.77 | ||
| P/OCF | 36.72 | ||
| P/B | 16.32 | ||
| P/tB | 89.45 | ||
| EV/EBITDA | 26.95 |
EPS(TTM)4.63
EY2.4%
EPS(NY)5.51
Fwd EY2.85%
FCF(TTM)4.22
FCFY2.18%
OCF(TTM)5.26
OCFY2.72%
SpS26.27
BVpS11.83
TBVpS2.16
PEG (NY)3.28
PEG (5Y)2.48
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 | 12.86 |
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 Year31.7%
EBIT Next 3Y15.74%
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 for CTAS stock?
ChartMill assigns a valuation rating of 2 / 10 to CINTAS CORP (CTAS). This can be considered as Overvalued.
Can you provide the profitability details for CINTAS CORP?
CINTAS CORP (CTAS) has a profitability rating of 10 / 10.
What is the financial health of CINTAS CORP (CTAS) stock?
The financial health rating of CINTAS CORP (CTAS) is 9 / 10.
Can you provide the dividend sustainability for CTAS stock?
The dividend rating of CINTAS CORP (CTAS) is 5 / 10 and the dividend payout ratio is 34.21%.