CINTAS CORP (CTAS) Stock Fundamental Analysis
USA - NASDAQ:CTAS - US1729081059 - Common Stock
199.32 USD
-0.19 (-0.1%)
Taking everything into account, CTAS scores 7 out of 10 in our fundamental rating. CTAS was compared to 84 industry peers in the Commercial Services & Supplies industry. CTAS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, CTAS is valued expensive at the moment. 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.
In the past 5 years CTAS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CTAS (18.40%) is better than 96.43% of its industry peers.
Looking at the Return On Equity, with a value of 38.58%, CTAS belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
With an excellent Return On Invested Capital value of 23.03%, CTAS belongs to the best of the industry, outperforming 96.43% 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 10.60%.
The 3 year average ROIC (21.73%) for CTAS is below the current ROIC(23.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.4% | ||
| ROE | 38.58% | ||
| ROIC | 23.03% |
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 17.48%. This is amongst the best in the industry. CTAS outperforms 92.86% 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 22.82%, CTAS belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
In the last couple of years the Operating Margin of CTAS has grown nicely.
CTAS's Gross Margin of 50.04% is amongst the best of the industry. CTAS outperforms 89.29% of its industry peers.
In the last couple of years the Gross Margin of CTAS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.82% | ||
| PM (TTM) | 17.48% | ||
| GM | 50.04% |
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
CTAS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CTAS has been reduced compared to 1 year ago.
The number of shares outstanding for CTAS has been reduced compared to 5 years ago.
The debt/assets ratio for CTAS has been reduced compared to a year ago.
2.2 Solvency
CTAS has an Altman-Z score of 13.13. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
CTAS's Altman-Z score of 13.13 is amongst the best of the industry. CTAS outperforms 94.05% of its industry peers.
CTAS has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.38, CTAS belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
CTAS has a Debt/Equity ratio of 0.52. This is a neutral value indicating CTAS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, CTAS perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
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 | 0.52 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 13.13 |
ROIC/WACC2.69
WACC8.56%
2.3 Liquidity
A Current Ratio of 2.09 indicates that CTAS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.09, CTAS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
CTAS has a Quick Ratio of 1.82. 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 Quick ratio of 1.82. This is in the better half of the industry: CTAS outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
CTAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.51%, which is quite good.
The Earnings Per Share has been growing by 16.84% on average over the past years. This is quite good.
Looking at the last year, CTAS shows a small growth in Revenue. The Revenue has grown by 7.75% in the last year.
The Revenue has been growing slightly by 7.85% on average over the past years.
EPS 1Y (TTM)16.51%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%9.27%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%7.96%
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.
CTAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.57% yearly.
EPS Next Y12.16%
EPS Next 2Y11.19%
EPS Next 3Y10.81%
EPS Next 5Y10.27%
Revenue Next Year7.89%
Revenue Next 2Y7.52%
Revenue Next 3Y7.42%
Revenue Next 5Y7.57%
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
With a Price/Earnings ratio of 45.20, CTAS can be considered very expensive at the moment.
CTAS's Price/Earnings ratio is in line with the industry average.
CTAS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 40.30, which means the current valuation is very expensive for CTAS.
CTAS's Price/Forward Earnings is on the same level as the industry average.
CTAS is valuated expensively when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.2 | ||
| Fwd PE | 40.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTAS is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as CTAS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.71 | ||
| EV/EBITDA | 28.93 |
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)3.72
PEG (5Y)2.68
EPS Next 2Y11.19%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, CTAS is not a good candidate for dividend investing.
CTAS's Dividend Yield is a higher than the industry average which is at 2.27.
With a Dividend Yield of 0.88, CTAS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of CTAS is nicely growing with an annual growth rate of 18.49%!
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
33.84% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
The dividend of CTAS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.84%
EPS Next 2Y11.19%
EPS Next 3Y10.81%
NASDAQ:CTAS (9/19/2025, 10:45:03 AM)
199.32
-0.19 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.5%
Inst Owner Change-4.29%
Ins Owners1.71%
Ins Owner Change0.02%
Market Cap80.32B
Analysts70
Price Target226.92 (13.85%)
Short Float %2.12%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend1.51
Dividend Growth(5Y)18.49%
DP33.84%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.41%
Min EPS beat(2)-0.11%
Max EPS beat(2)4.93%
EPS beat(4)3
Avg EPS beat(4)5.82%
Min EPS beat(4)-0.11%
Max EPS beat(4)13.14%
EPS beat(8)6
Avg EPS beat(8)3.96%
EPS beat(12)10
Avg EPS beat(12)3.53%
EPS beat(16)14
Avg EPS beat(16)4.18%
Revenue beat(2)0
Avg Revenue beat(2)-0.95%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-0.39%
Revenue beat(8)0
Avg Revenue beat(8)-1.33%
Revenue beat(12)2
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)-0.55%
PT rev (1m)0.49%
PT rev (3m)4.86%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.2 | ||
| Fwd PE | 40.3 | ||
| P/S | 7.77 | ||
| P/FCF | 45.71 | ||
| P/OCF | 37.08 | ||
| P/B | 17.15 | ||
| P/tB | 82.43 | ||
| EV/EBITDA | 28.93 |
EPS(TTM)4.41
EY2.21%
EPS(NY)4.95
Fwd EY2.48%
FCF(TTM)4.36
FCFY2.19%
OCF(TTM)5.37
OCFY2.7%
SpS25.66
BVpS11.62
TBVpS2.42
PEG (NY)3.72
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.4% | ||
| ROE | 38.58% | ||
| ROCE | 28.84% | ||
| ROIC | 23.03% | ||
| ROICexc | 23.8% | ||
| ROICexgc | 44.78% | ||
| OM | 22.82% | ||
| PM (TTM) | 17.48% | ||
| GM | 50.04% | ||
| FCFM | 16.99% |
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%
ROICexcg growth 3Y2.84%
ROICexcg 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-Score8
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 82.74% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.89% | ||
| Profit Quality | 97.21% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 13.13 |
F-Score8
WACC8.56%
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)16.51%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%9.27%
EPS Next Y12.16%
EPS Next 2Y11.19%
EPS Next 3Y10.81%
EPS Next 5Y10.27%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%7.96%
Revenue Next Year7.89%
Revenue Next 2Y7.52%
Revenue Next 3Y7.42%
Revenue Next 5Y7.57%
EBIT growth 1Y14.07%
EBIT growth 3Y14.13%
EBIT growth 5Y14.55%
EBIT Next Year30.92%
EBIT Next 3Y15.26%
EBIT Next 5Y12.98%
FCF growth 1Y5.19%
FCF growth 3Y10.65%
FCF growth 5Y10.61%
OCF growth 1Y4.14%
OCF growth 3Y12.1%
OCF growth 5Y10.89%