CINTAS CORP (CTAS) Stock Fundamental Analysis
NASDAQ:CTAS - Nasdaq - US1729081059 - Common Stock
CTAS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. CTAS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
In the past year CTAS had a positive cash flow from operations.
Each year in the past 5 years CTAS has been profitable.
Each year in the past 5 years CTAS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 18.22%, CTAS belongs to the best of the industry, outperforming 98.78% of the companies in the same industry.
CTAS has a Return On Equity of 39.74%. This is amongst the best in the industry. CTAS outperforms 97.56% of its industry peers.
CTAS has a Return On Invested Capital of 24.03%. This is amongst the best in the industry. CTAS outperforms 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 10.08%.
The 3 year average ROIC (20.29%) for CTAS is below the current ROIC(24.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.22% | ||
| ROE | 39.74% | ||
| ROIC | 24.03% |
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
With an excellent Profit Margin value of 17.16%, CTAS belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
CTAS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.34%, CTAS belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
CTAS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.62%, CTAS belongs to the top of the industry, outperforming 86.59% 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 | 22.34% | ||
| PM (TTM) | 17.16% | ||
| GM | 49.62% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CTAS is creating value.
Compared to 1 year ago, CTAS has more shares outstanding
Compared to 5 years ago, CTAS has more shares outstanding
The debt/assets ratio for CTAS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 13.13 indicates that CTAS is not in any danger for bankruptcy at the moment.
CTAS has a Altman-Z score of 13.13. This is amongst the best in the industry. CTAS outperforms 97.56% 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.
The Debt to FCF ratio of CTAS (1.43) is better than 81.71% of its industry peers.
CTAS has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.47, CTAS is in line with its industry, outperforming 52.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 13.13 |
ROIC/WACC2.65
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.58 indicates that CTAS should not have too much problems paying its short term obligations.
CTAS has a Current ratio (1.58) which is in line with its industry peers.
A Quick Ratio of 1.38 indicates that CTAS should not have too much problems paying its short term obligations.
CTAS has a Quick ratio (1.38) which is in line with its industry peers.
The current and quick ratio evaluation for CTAS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
CTAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.39%, which is quite impressive.
Measured over the past years, CTAS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.78% on average per year.
The Revenue has grown by 8.12% in the past year. This is quite good.
The Revenue has been growing slightly by 6.84% on average over the past years.
EPS 1Y (TTM)20.39%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%20.78%
Revenue 1Y (TTM)8.12%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%7.77%
3.2 Future
The Earnings Per Share is expected to grow by 11.48% on average over the next years. This is quite good.
CTAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.70% yearly.
EPS Next Y16.39%
EPS Next 2Y13.32%
EPS Next 3Y12.16%
EPS Next 5Y11.48%
Revenue Next Year7.37%
Revenue Next 2Y7.28%
Revenue Next 3Y7.2%
Revenue Next 5Y7.7%
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.
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
CTAS is valuated quite expensively with a Price/Earnings ratio of 48.49.
Compared to the rest of the industry, the Price/Earnings ratio of CTAS is on the same level as its industry peers.
CTAS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.29.
CTAS is valuated quite expensively with a Price/Forward Earnings ratio of 41.40.
The rest of the industry has a similar Price/Forward Earnings ratio as CTAS.
CTAS is valuated expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.49 | ||
| Fwd PE | 41.4 |
4.2 Price Multiples
68.29% of the companies in the same industry are cheaper than CTAS, based on the Enterprise Value to EBITDA ratio.
CTAS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.77 | ||
| EV/EBITDA | 30.66 |
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.
The excellent profitability rating of CTAS may justify a higher PE ratio.
CTAS's earnings are expected to grow with 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.96
PEG (5Y)3.28
EPS Next 2Y13.32%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, CTAS is not a good candidate for dividend investing.
CTAS's Dividend Yield is a higher than the industry average which is at 2.09.
Compared to an average S&P500 Dividend Yield of 2.28, CTAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
The dividend of CTAS decreases each year by -0.11%.
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)-0.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
33.44% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
DP33.44%
EPS Next 2Y13.32%
EPS Next 3Y12.16%
CINTAS CORP
NASDAQ:CTAS (1/21/2025, 8:00:00 PM)
After market: 200 -1.23 (-0.61%)201.23
+2.92 (+1.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners66.94%
Inst Owner Change0.01%
Ins Owners1.79%
Ins Owner Change0.23%
Market Cap81.20B
Analysts71.2
Price Target212.56 (5.63%)
Short Float %1.53%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend2.1
Dividend Growth(5Y)-0.11%
DP33.44%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.23%
Min EPS beat(2)5.32%
Max EPS beat(2)13.14%
EPS beat(4)4
Avg EPS beat(4)6.71%
Min EPS beat(4)3.09%
Max EPS beat(4)13.14%
EPS beat(8)7
Avg EPS beat(8)3.81%
EPS beat(12)11
Avg EPS beat(12)4.08%
EPS beat(16)15
Avg EPS beat(16)4.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.87%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.68%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-1.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.21%
Revenue beat(12)4
Avg Revenue beat(12)-0.44%
Revenue beat(16)4
Avg Revenue beat(16)-0.54%
PT rev (1m)-2%
PT rev (3m)8.37%
EPS NQ rev (1m)5.47%
EPS NQ rev (3m)-75.1%
EPS NY rev (1m)1.9%
EPS NY rev (3m)-74.08%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.49 | ||
| Fwd PE | 41.4 | ||
| P/S | 8.17 | ||
| P/FCF | 43.77 | ||
| P/OCF | 35.95 | ||
| P/B | 18.91 | ||
| P/tB | 168.87 | ||
| EV/EBITDA | 30.66 |
EPS(TTM)4.15
EY2.06%
EPS(NY)4.86
Fwd EY2.42%
FCF(TTM)4.6
FCFY2.28%
OCF(TTM)5.6
OCFY2.78%
SpS24.64
BVpS10.64
TBVpS1.19
PEG (NY)2.96
PEG (5Y)3.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.22% | ||
| ROE | 39.74% | ||
| ROCE | 30.18% | ||
| ROIC | 24.03% | ||
| ROICexc | 24.44% | ||
| ROICexgc | 51.64% | ||
| OM | 22.34% | ||
| PM (TTM) | 17.16% | ||
| GM | 49.62% | ||
| FCFM | 18.66% |
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 | 0.47 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 85.51% | ||
| Cap/Sales | 4.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.88% | ||
| Profit Quality | 108.72% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 13.13 |
F-Score8
WACC9.07%
ROIC/WACC2.65
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)20.39%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%20.78%
EPS Next Y16.39%
EPS Next 2Y13.32%
EPS Next 3Y12.16%
EPS Next 5Y11.48%
Revenue 1Y (TTM)8.12%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%7.77%
Revenue Next Year7.37%
Revenue Next 2Y7.28%
Revenue Next 3Y7.2%
Revenue Next 5Y7.7%
EBIT growth 1Y15.8%
EBIT growth 3Y14.15%
EBIT growth 5Y12.5%
EBIT Next Year37.92%
EBIT Next 3Y17.88%
EBIT Next 5Y14.12%
FCF growth 1Y44.43%
FCF growth 3Y11.13%
FCF growth 5Y16.12%
OCF growth 1Y44.49%
OCF growth 3Y15.19%
OCF growth 5Y14.26%