191.39 USD
+1.74 (+0.92%)
At close: Jan 30, 2026
191.52 USD
+0.13 (+0.07%)
After Hours: 1/30/2026, 8:00:01 PM
We assign a fundamental rating of 7 out of 10 to CTAS. CTAS was compared to 80 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making CTAS a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, CTAS is valued expensive at the moment. This makes CTAS very considerable 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.
- 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
- CTAS's Return On Assets of 18.67% is amongst the best of the industry. CTAS outperforms 100.00% of its industry peers.
- With an excellent Return On Equity value of 42.46%, CTAS belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
- CTAS has a better Return On Invested Capital (24.58%) than 98.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CTAS is significantly above the industry average of 10.57%.
- The last Return On Invested Capital (24.58%) for CTAS is above the 3 year average (21.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.67% | ||
| ROE | 42.46% | ||
| ROIC | 24.58% |
ROA(3y)17.06%
ROA(5y)15.93%
ROE(3y)36.52%
ROE(5y)35.33%
ROIC(3y)21.68%
ROIC(5y)20.31%
1.3 Margins
- The Profit Margin of CTAS (17.52%) is better than 97.50% of its industry peers.
- CTAS's Profit Margin has improved in the last couple of years.
- The Operating Margin of CTAS (22.98%) is better than 97.50% of its industry peers.
- CTAS's Operating Margin has improved in the last couple of years.
- CTAS's Gross Margin of 50.25% is amongst the best of the industry. CTAS outperforms 88.75% of its industry peers.
- CTAS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.98% | ||
| PM (TTM) | 17.52% | ||
| GM | 50.25% |
OM growth 3Y3.91%
OM growth 5Y6.07%
PM growth 3Y3.71%
PM growth 5Y7.35%
GM growth 3Y2.66%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
- CTAS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, CTAS has less shares outstanding
- The number of shares outstanding for CTAS has been reduced compared to 5 years ago.
- Compared to 1 year ago, CTAS has an improved debt to assets ratio.
2.2 Solvency
- CTAS has an Altman-Z score of 11.89. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
- CTAS has a better Altman-Z score (11.89) than 92.50% of its industry peers.
- The Debt to FCF ratio of CTAS is 1.67, which is an excellent value as it means it would take CTAS, only 1.67 years of fcf income to pay off all of its debts.
- CTAS has a Debt to FCF ratio of 1.67. This is amongst the best in the industry. CTAS outperforms 85.00% of its industry peers.
- A Debt/Equity ratio of 0.54 indicates that CTAS is somewhat dependend on debt financing.
- CTAS has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: CTAS outperforms 47.50% 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 | 0.54 | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | 11.89 |
ROIC/WACC2.82
WACC8.73%
2.3 Liquidity
- CTAS has a Current Ratio of 1.71. This is a normal value and indicates that CTAS is financially healthy and should not expect problems in meeting its short term obligations.
- CTAS has a Current ratio of 1.71. This is in the better half of the industry: CTAS outperforms 63.75% of its industry peers.
- CTAS has a Quick Ratio of 1.49. This is a normal value and indicates that CTAS is financially healthy and should not expect problems in meeting its short term obligations.
- CTAS's Quick ratio of 1.49 is in line compared to the rest of the industry. CTAS outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.63% over the past year.
- The Earnings Per Share has been growing by 16.84% on average over the past years. This is quite good.
- The Revenue has grown by 8.60% in the past year. This is quite good.
- The Revenue has been growing slightly by 7.85% on average over the past years.
EPS 1Y (TTM)11.63%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%11.01%
Revenue 1Y (TTM)8.6%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%9.3%
3.2 Future
- The Earnings Per Share is expected to grow by 11.23% on average over the next years. This is quite good.
- Based on estimates for the next years, CTAS will show a quite strong growth in Revenue. The Revenue will grow by 8.20% on average per year.
EPS Next Y12.8%
EPS Next 2Y11.82%
EPS Next 3Y11.34%
EPS Next 5Y11.23%
Revenue Next Year8.74%
Revenue Next 2Y8.07%
Revenue Next 3Y7.75%
Revenue Next 5Y8.2%
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
- The Price/Earnings ratio is 41.34, which means the current valuation is very expensive for CTAS.
- The rest of the industry has a similar Price/Earnings ratio as CTAS.
- CTAS is valuated rather expensively when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- CTAS is valuated quite expensively with a Price/Forward Earnings ratio of 34.71.
- CTAS's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, CTAS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.34 | ||
| Fwd PE | 34.71 |
4.2 Price Multiples
- 61.25% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.19 | ||
| EV/EBITDA | 26.71 |
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)3.23
PEG (5Y)2.45
EPS Next 2Y11.82%
EPS Next 3Y11.34%
5. Dividend
5.1 Amount
- CTAS has a yearly dividend return of 0.95%, which is pretty low.
- CTAS's Dividend Yield is a higher than the industry average which is at 0.83.
- With a Dividend Yield of 0.95, CTAS pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
- On average, the dividend of CTAS grows each year by 18.49%, which is quite nice.
- 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)18.49%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- CTAS pays out 34.69% of its income as dividend. This is a sustainable payout ratio.
- The dividend of CTAS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.69%
EPS Next 2Y11.82%
EPS Next 3Y11.34%
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 for CTAS stock?
ChartMill assigns a valuation rating of 2 / 10 to CINTAS CORP (CTAS). This can be considered as Overvalued.
Can you provide the profitability details for CINTAS CORP?
CINTAS CORP (CTAS) has a profitability rating of 10 / 10.
What is the financial health of CINTAS CORP (CTAS) stock?
The financial health rating of CINTAS CORP (CTAS) is 8 / 10.
Can you provide the dividend sustainability for CTAS stock?
The dividend rating of CINTAS CORP (CTAS) is 5 / 10 and the dividend payout ratio is 34.69%.