CINTAS CORP (CTAS) Stock Fundamental Analysis
USA - NASDAQ:CTAS - US1729081059 - Common Stock
186.59 USD
+3.39 (+1.85%)
Taking everything into account, CTAS scores 7 out of 10 in our fundamental rating. CTAS was compared to 82 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 quite expensive at the moment. 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
CTAS had positive earnings in the past year.
CTAS had a positive operating cash flow in the past year.
In the past 5 years CTAS has always been profitable.
Each year in the past 5 years CTAS had a positive operating cash flow.
1.2 Ratios
CTAS has a better Return On Assets (18.77%) than 100.00% of its industry peers.
CTAS has a better Return On Equity (38.83%) than 96.34% of its industry peers.
With an excellent Return On Invested Capital value of 23.16%, CTAS belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTAS is significantly above the industry average of 10.48%.
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
With an excellent Profit Margin value of 17.49%, 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.
CTAS has a Operating Margin of 22.89%. This is amongst the best in the industry. CTAS outperforms 97.56% of its industry peers.
CTAS's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 50.10%, CTAS belongs to the best of the industry, outperforming 89.02% 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) | 17.49% | ||
| 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.
The number of shares outstanding for CTAS has been reduced compared to 1 year ago.
Compared to 5 years ago, CTAS has less shares outstanding
Compared to 1 year ago, CTAS has an improved debt to assets ratio.
2.2 Solvency
CTAS has an Altman-Z score of 12.53. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
CTAS's Altman-Z score of 12.53 is amongst the best of the industry. CTAS outperforms 95.12% of its industry peers.
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.
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.
CTAS has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: CTAS outperforms 48.78% of its industry peers.
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 | 12.53 |
ROIC/WACC2.69
WACC8.62%
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.
Looking at the Current ratio, with a value of 2.24, CTAS is in the better half of the industry, outperforming 75.61% 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 Quick ratio of 1.94. This is amongst the best in the industry. CTAS outperforms 80.49% 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.
CTAS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.84% yearly.
CTAS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.21%.
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)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
The Earnings Per Share is expected to grow by 10.27% on average over the next years. This is quite good.
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 Y12.01%
EPS Next 2Y11.36%
EPS Next 3Y10.87%
EPS Next 5Y10.27%
Revenue Next Year8.28%
Revenue Next 2Y7.7%
Revenue Next 3Y7.55%
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
Based on the Price/Earnings ratio of 41.37, the valuation of CTAS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CTAS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.07, CTAS is valued quite expensively.
The Price/Forward Earnings ratio is 34.12, which means the current valuation is very expensive for CTAS.
The rest of the industry has a similar Price/Forward Earnings ratio as CTAS.
The average S&P500 Price/Forward Earnings ratio is at 34.08. CTAS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.37 | ||
| Fwd PE | 34.12 |
4.2 Price Multiples
CTAS's Enterprise Value to EBITDA ratio is in line with the industry average.
CTAS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.22 | ||
| EV/EBITDA | 25.98 |
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.
PEG (NY)3.44
PEG (5Y)2.46
EPS Next 2Y11.36%
EPS Next 3Y10.87%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, CTAS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.55, CTAS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.96, CTAS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of CTAS is nicely growing with an annual growth rate of 18.49%!
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 2Y11.36%
EPS Next 3Y10.87%
NASDAQ:CTAS (11/21/2025, 2:18:09 PM)
186.59
+3.39 (+1.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.36%
Inst Owner Change0.1%
Ins Owners1.64%
Ins Owner Change0.27%
Market Cap74.98B
Revenue(TTM)10.56B
Net Income(TTM)1.85B
Analysts70
Price Target222.84 (19.43%)
Short Float %1.87%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)-0.49%
PT rev (3m)-1.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.37 | ||
| Fwd PE | 34.12 | ||
| P/S | 7.1 | ||
| P/FCF | 44.22 | ||
| P/OCF | 35.48 | ||
| P/B | 15.77 | ||
| P/tB | 86.42 | ||
| EV/EBITDA | 25.98 |
EPS(TTM)4.51
EY2.42%
EPS(NY)5.47
Fwd EY2.93%
FCF(TTM)4.22
FCFY2.26%
OCF(TTM)5.26
OCFY2.82%
SpS26.27
BVpS11.83
TBVpS2.16
PEG (NY)3.44
PEG (5Y)2.46
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 | 12.53 |
F-Score7
WACC8.62%
ROIC/WACC2.69
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 Y12.01%
EPS Next 2Y11.36%
EPS Next 3Y10.87%
EPS Next 5Y10.27%
Revenue 1Y (TTM)8.21%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%8.66%
Revenue Next Year8.28%
Revenue Next 2Y7.7%
Revenue Next 3Y7.55%
Revenue Next 5Y7.57%
EBIT growth 1Y13.5%
EBIT growth 3Y14.13%
EBIT growth 5Y14.55%
EBIT Next Year30.87%
EBIT Next 3Y15.39%
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 12.01% in the next year.