CINTAS CORP (CTAS) Stock Fundamental Analysis
NASDAQ:CTAS - Nasdaq - US1729081059 - Common Stock - Currency: USD
CTAS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 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.
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
CTAS's Return On Assets of 18.44% is amongst the best of the industry. CTAS outperforms 96.39% of its industry peers.
With an excellent Return On Equity value of 38.59%, CTAS belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
The Return On Invested Capital of CTAS (23.98%) is better than 97.59% 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 10.77%.
The last Return On Invested Capital (23.98%) for CTAS is above the 3 year average (20.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | 38.59% | ||
| ROIC | 23.98% |
ROA(3y)15.96%
ROA(5y)14.52%
ROE(3y)36.06%
ROE(5y)32.99%
ROIC(3y)20.29%
ROIC(5y)18.5%
1.3 Margins
CTAS's Profit Margin of 17.47% is amongst the best of the industry. CTAS outperforms 92.77% of its industry peers.
CTAS's Profit Margin has improved in the last couple of years.
CTAS has a better Operating Margin (22.77%) than 96.39% 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 49.92%, CTAS belongs to the best of the industry, outperforming 87.95% of the companies in the same industry.
CTAS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.77% | ||
| PM (TTM) | 17.47% | ||
| GM | 49.92% |
OM growth 3Y3.33%
OM growth 5Y5.29%
PM growth 3Y1.71%
PM growth 5Y5.13%
GM growth 3Y1.59%
GM growth 5Y1.47%
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 more shares outstanding
The number of shares outstanding for CTAS has been increased compared to 5 years ago.
CTAS has a better debt/assets ratio than last year.
2.2 Solvency
CTAS has an Altman-Z score of 13.63. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CTAS (13.63) is better than 97.59% of its industry peers.
CTAS has a debt to FCF ratio of 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
CTAS has a Debt to FCF ratio of 1.36. This is amongst the best in the industry. CTAS outperforms 80.72% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that CTAS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, CTAS is in line with its industry, outperforming 51.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 13.63 |
ROIC/WACC2.72
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.72 indicates that CTAS should not have too much problems paying its short term obligations.
CTAS has a better Current ratio (1.72) than 63.86% of its industry peers.
A Quick Ratio of 1.50 indicates that CTAS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, CTAS is in line with its industry, outperforming 57.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.27% over the past year.
The Earnings Per Share has been growing by 14.78% on average over the past years. This is quite good.
Looking at the last year, CTAS shows a small growth in Revenue. The Revenue has grown by 7.79% in the last year.
Measured over the past years, CTAS shows a small growth in Revenue. The Revenue has been growing by 6.84% on average per year.
EPS 1Y (TTM)19.27%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%17.71%
Revenue 1Y (TTM)7.79%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%8.44%
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 11.83% yearly.
CTAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.67% yearly.
EPS Next Y16.57%
EPS Next 2Y13.4%
EPS Next 3Y12.68%
EPS Next 5Y11.83%
Revenue Next Year7.37%
Revenue Next 2Y7.3%
Revenue Next 3Y7.19%
Revenue Next 5Y7.67%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
Based on the Price/Earnings ratio of 47.63, the valuation of CTAS can be described as expensive.
CTAS's Price/Earnings is on the same level as the industry average.
CTAS is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 42.27, which means the current valuation is very expensive for CTAS.
CTAS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CTAS to the average of the S&P500 Index (21.08), we can say CTAS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.63 | ||
| Fwd PE | 42.27 |
4.2 Price Multiples
CTAS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CTAS is more expensive than 67.47% 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 | 45.47 | ||
| EV/EBITDA | 30.5 |
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.
CTAS's earnings are expected to grow with 12.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.87
PEG (5Y)3.22
EPS Next 2Y13.4%
EPS Next 3Y12.68%
5. Dividend
5.1 Amount
CTAS has a yearly dividend return of 0.77%, which is pretty low.
CTAS's Dividend Yield is a higher than the industry average which is at 2.64.
With a Dividend Yield of 0.77, CTAS pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
The dividend of CTAS decreases each year by -0.11%.
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)-0.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
33.37% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
DP33.37%
EPS Next 2Y13.4%
EPS Next 3Y12.68%
205.76
+1.04 (+0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.15%
Inst Owner Change0.02%
Ins Owners1.79%
Ins Owner Change0.03%
Market Cap83.08B
Analysts69.23
Price Target213.32 (3.67%)
Short Float %1.13%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend2.1
Dividend Growth(5Y)-0.11%
DP33.37%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.13%
Min EPS beat(2)4.93%
Max EPS beat(2)5.32%
EPS beat(4)4
Avg EPS beat(4)6.62%
Min EPS beat(4)3.09%
Max EPS beat(4)13.14%
EPS beat(8)7
Avg EPS beat(8)4.26%
EPS beat(12)11
Avg EPS beat(12)3.79%
EPS beat(16)15
Avg EPS beat(16)4.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.37%
Revenue beat(12)3
Avg Revenue beat(12)-0.63%
Revenue beat(16)4
Avg Revenue beat(16)-0.61%
PT rev (1m)5.13%
PT rev (3m)0.36%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-0.79%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.63 | ||
| Fwd PE | 42.27 | ||
| P/S | 8.19 | ||
| P/FCF | 45.47 | ||
| P/OCF | 37.37 | ||
| P/B | 18.09 | ||
| P/tB | 110.88 | ||
| EV/EBITDA | 30.5 |
EPS(TTM)4.32
EY2.1%
EPS(NY)4.87
Fwd EY2.37%
FCF(TTM)4.52
FCFY2.2%
OCF(TTM)5.51
OCFY2.68%
SpS25.12
BVpS11.37
TBVpS1.86
PEG (NY)2.87
PEG (5Y)3.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | 38.59% | ||
| ROCE | 30.12% | ||
| ROIC | 23.98% | ||
| ROICexc | 24.76% | ||
| ROICexgc | 51.32% | ||
| OM | 22.77% | ||
| PM (TTM) | 17.47% | ||
| GM | 49.92% | ||
| FCFM | 18.01% |
ROA(3y)15.96%
ROA(5y)14.52%
ROE(3y)36.06%
ROE(5y)32.99%
ROIC(3y)20.29%
ROIC(5y)18.5%
ROICexc(3y)20.86%
ROICexc(5y)19.2%
ROICexgc(3y)43.4%
ROICexgc(5y)41.05%
ROCE(3y)25.49%
ROCE(5y)23.23%
ROICexcg growth 3Y2.7%
ROICexcg growth 5Y9.17%
ROICexc growth 3Y7.28%
ROICexc growth 5Y9.85%
OM growth 3Y3.33%
OM growth 5Y5.29%
PM growth 3Y1.71%
PM growth 5Y5.13%
GM growth 3Y1.59%
GM growth 5Y1.47%
F-Score8
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.36 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 81.31% | ||
| Cap/Sales | 3.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.48% | ||
| Profit Quality | 103.1% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 13.63 |
F-Score8
WACC8.81%
ROIC/WACC2.72
Cap/Depr(3y)77.9%
Cap/Depr(5y)66.29%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.27%
Profit Quality(3y)102.17%
Profit Quality(5y)107.82%
High Growth Momentum
Growth
EPS 1Y (TTM)19.27%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%17.71%
EPS Next Y16.57%
EPS Next 2Y13.4%
EPS Next 3Y12.68%
EPS Next 5Y11.83%
Revenue 1Y (TTM)7.79%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%8.44%
Revenue Next Year7.37%
Revenue Next 2Y7.3%
Revenue Next 3Y7.19%
Revenue Next 5Y7.67%
EBIT growth 1Y15.97%
EBIT growth 3Y14.15%
EBIT growth 5Y12.5%
EBIT Next Year39.89%
EBIT Next 3Y17.98%
EBIT Next 5Y14.42%
FCF growth 1Y41%
FCF growth 3Y11.13%
FCF growth 5Y16.12%
OCF growth 1Y39.41%
OCF growth 3Y15.19%
OCF growth 5Y14.26%