183.15 USD
+0.17 (+0.09%)
183.15 USD
0 (0%)
CTAS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 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. This makes CTAS very considerable 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.
Each year in the past 5 years CTAS has been profitable.
In the past 5 years CTAS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 18.77%, CTAS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CTAS has a Return On Equity of 38.83%. This is amongst the best in the industry. CTAS outperforms 96.34% of its industry peers.
CTAS has a Return On Invested Capital of 23.16%. This is amongst the best in the industry. CTAS outperforms 97.56% 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 10.25%.
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
CTAS has a Profit Margin of 17.49%. This is amongst the best in the industry. CTAS outperforms 97.56% of its industry peers.
CTAS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.89%, CTAS belongs to the top 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.
CTAS has a better Gross Margin (50.10%) than 89.02% of its industry peers.
In the last couple of years the Gross Margin of CTAS has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CTAS is creating value.
CTAS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTAS has less shares outstanding
The debt/assets ratio for CTAS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.52 indicates that CTAS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.52, CTAS belongs to the top of the industry, outperforming 93.90% of the companies in the same industry.
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 84.15% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that CTAS is somewhat dependend on debt financing.
The Debt to Equity ratio of CTAS (0.51) is comparable to the rest of the industry.
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 | 12.52 |
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.
With a decent Current ratio value of 2.24, CTAS is doing good in the industry, outperforming 74.39% of the companies in the same industry.
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 78.05% 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 13.89%, which is quite good.
The Earnings Per Share has been growing by 16.84% on average over the past years. This is quite good.
CTAS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.21%.
The Revenue has been growing slightly by 7.85% on average over the past years.
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
CTAS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.27% yearly.
The Revenue is expected to grow by 7.57% on average over the next years.
EPS Next Y12.02%
EPS Next 2Y11.41%
EPS Next 3Y11.45%
EPS Next 5Y10.27%
Revenue Next Year8.26%
Revenue Next 2Y7.67%
Revenue Next 3Y7.47%
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
With a Price/Earnings ratio of 40.61, CTAS can be considered very expensive at the moment.
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 26.34, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 33.46 indicates a quite expensive valuation of CTAS.
CTAS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.56. CTAS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.61 | ||
| Fwd PE | 33.46 |
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.
CTAS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.4 | ||
| EV/EBITDA | 25.95 |
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)3.38
PEG (5Y)2.41
EPS Next 2Y11.41%
EPS Next 3Y11.45%
5. Dividend
5.1 Amount
CTAS has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 2.46, CTAS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.98, CTAS pays less dividend than the S&P500 average, which is at 2.31.
| 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
CTAS pays out 34.18% of its income as dividend. This is a sustainable payout ratio.
CTAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.18%
EPS Next 2Y11.41%
EPS Next 3Y11.45%
183.15
+0.17 (+0.09%)
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 Cap73.60B
Revenue(TTM)10.56B
Net Income(TTM)1.85B
Analysts70.37
Price Target219.82 (20.02%)
Short Float %1.86%
Short Ratio2.85
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)-1.36%
PT rev (3m)-3.13%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.61 | ||
| Fwd PE | 33.46 | ||
| P/S | 6.97 | ||
| P/FCF | 43.4 | ||
| P/OCF | 34.82 | ||
| P/B | 15.48 | ||
| P/tB | 84.83 | ||
| EV/EBITDA | 25.95 |
EPS(TTM)4.51
EY2.46%
EPS(NY)5.47
Fwd EY2.99%
FCF(TTM)4.22
FCFY2.3%
OCF(TTM)5.26
OCFY2.87%
SpS26.27
BVpS11.83
TBVpS2.16
PEG (NY)3.38
PEG (5Y)2.41
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 | 12.52 |
F-Score7
WACC8.65%
ROIC/WACC2.68
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 Y12.02%
EPS Next 2Y11.41%
EPS Next 3Y11.45%
EPS Next 5Y10.27%
Revenue 1Y (TTM)8.21%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%8.66%
Revenue Next Year8.26%
Revenue Next 2Y7.67%
Revenue Next 3Y7.47%
Revenue Next 5Y7.57%
EBIT growth 1Y13.5%
EBIT growth 3Y14.13%
EBIT growth 5Y14.55%
EBIT Next Year31.04%
EBIT Next 3Y16.09%
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 12.02% in the next year.