CINTAS CORP (CTAS)
US1729081059 - Common Stock
Overall CTAS gets a fundamental rating of 7 out of 10. We evaluated CTAS against 84 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. These ratings would make CTAS suitable for quality investing!
1. Profitability
1.1 Basic Checks
CTAS had positive earnings in the past year.
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 22.23%, CTAS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of CTAS (50.13%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.56%, CTAS belongs to the top of the industry, outperforming 98.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CTAS is significantly above the industry average of 9.90%.
The last Return On Invested Capital (29.56%) for CTAS is above the 3 year average (20.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.23% | ||
| ROE | 50.13% | ||
| ROIC | 29.56% |
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 16.66%, CTAS belongs to the best of the industry, outperforming 95.24% 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 21.74%. This is amongst the best in the industry. CTAS outperforms 94.05% of its industry peers.
In the last couple of years the Operating Margin of CTAS has grown nicely.
Looking at the Gross Margin, with a value of 49.09%, CTAS belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
In the last couple of years the Gross Margin of CTAS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.74% | ||
| PM (TTM) | 16.66% | ||
| GM | 49.09% |
OM growth 3Y3.33%
OM growth 5Y5.29%
PM growth 3Y1.71%
PM growth 5Y5.14%
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
CTAS has more shares outstanding than it did 5 years ago.
CTAS has a better debt/assets ratio than last year.
2.2 Solvency
CTAS has an Altman-Z score of 14.60. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
CTAS has a Altman-Z score of 14.60. This is amongst the best in the industry. CTAS outperforms 96.43% of its industry peers.
CTAS has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
CTAS's Debt to FCF ratio of 1.46 is amongst the best of the industry. CTAS outperforms 82.14% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that CTAS is somewhat dependend on debt financing.
CTAS has a Debt to Equity ratio (0.50) which is in line with 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 | 0.5 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 14.6 |
ROIC/WACC3.33
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.53 indicates that CTAS should not have too much problems paying its short term obligations.
CTAS has a Current ratio (1.53) which is comparable to the rest of the industry.
A Quick Ratio of 1.33 indicates that CTAS should not have too much problems paying its short term obligations.
The Quick ratio of CTAS (1.33) is comparable to the rest of the industry.
CTAS does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.53 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.19% 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 very strong growth in Revenue. The Revenue has grown by 34.55%.
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)19.19%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%18.92%
Revenue 1Y (TTM)34.55%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%6.8%
3.2 Future
Based on estimates for the next years, CTAS will show a very strong growth in Earnings Per Share. The EPS will grow by 43.83% on average per year.
The Revenue is expected to grow by 7.70% on average over the next years.
EPS Next Y14.22%
EPS Next 2Y12.32%
EPS Next 3Y11.57%
EPS Next 5Y43.83%
Revenue Next Year7.28%
Revenue Next 2Y7.2%
Revenue Next 3Y7.16%
Revenue Next 5Y7.7%
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 accelerating.
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
The Price/Earnings ratio is 55.75, which means the current valuation is very expensive for CTAS.
The rest of the industry has a similar Price/Earnings ratio as CTAS.
Compared to an average S&P500 Price/Earnings ratio of 28.65, CTAS is valued quite expensively.
CTAS is valuated quite expensively with a Price/Forward Earnings ratio of 46.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTAS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, CTAS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.75 | ||
| Fwd PE | 46.23 |
4.2 Price Multiples
67.86% 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 | 49.09 | ||
| EV/EBITDA | 29.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CTAS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.92
PEG (5Y)3.77
EPS Next 2Y12.32%
EPS Next 3Y11.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, CTAS is not a good candidate for dividend investing.
CTAS's Dividend Yield is a higher than the industry average which is at 2.10.
Compared to an average S&P500 Dividend Yield of 2.23, CTAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
27.36% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
DP27.36%
EPS Next 2Y12.32%
EPS Next 3Y11.57%
CINTAS CORP
NASDAQ:CTAS (11/21/2024, 12:37:03 PM)
220.77
+2.02 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap89.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.75 | ||
| Fwd PE | 46.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.92
PEG (5Y)3.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.23% | ||
| ROE | 50.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.74% | ||
| PM (TTM) | 16.66% | ||
| GM | 49.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)19.19%
EPS 3Y13.92%
EPS 5Y
EPS Q2Q%
EPS Next Y14.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)34.55%
Revenue growth 3Y10.48%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y