CINTAS CORP (CTAS) Stock Fundamental Analysis
NASDAQ:CTAS - US1729081059 - Common Stock
213.2 USD
+0.21 (+0.1%)
213.2 USD
0 (0%)
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 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. These ratings would make CTAS suitable 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.
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 18.40%, CTAS belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
CTAS's Return On Equity of 38.58% is amongst the best of the industry. CTAS outperforms 94.05% of its industry peers.
The Return On Invested Capital of CTAS (23.03%) is better than 96.43% 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 10.78%.
The last Return On Invested Capital (23.03%) for CTAS is above the 3 year average (21.73%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 17.48%, CTAS belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of CTAS has grown nicely.
CTAS has a Operating Margin of 22.82%. This is amongst the best in the industry. CTAS outperforms 97.62% of its industry peers.
In the last couple of years the Operating Margin of CTAS has grown nicely.
CTAS has a better Gross Margin (50.04%) than 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CTAS is creating value.
The number of shares outstanding for CTAS has been reduced compared to 1 year ago.
CTAS has less shares outstanding than it did 5 years ago.
CTAS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.77 indicates that CTAS is not in any danger for bankruptcy at the moment.
CTAS has a better Altman-Z score (13.77) than 95.24% of its industry peers.
The Debt to FCF ratio of CTAS is 1.38, which is an excellent value as it means it would take CTAS, only 1.38 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CTAS (1.38) is better than 83.33% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that CTAS is somewhat dependend on debt financing.
CTAS has a Debt to Equity ratio (0.52) which is in line with 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 | 0.52 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 13.77 |
ROIC/WACC2.63
WACC8.76%
2.3 Liquidity
CTAS has a Current Ratio of 2.09. This indicates that CTAS is financially healthy and has no problem in meeting its short term obligations.
CTAS's Current ratio of 2.09 is fine compared to the rest of the industry. CTAS outperforms 71.43% of its industry peers.
A Quick Ratio of 1.82 indicates that CTAS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.82, CTAS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 7.75% in the past 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
The Earnings Per Share is expected to grow by 10.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.57% on average over the next years.
EPS Next Y12.16%
EPS Next 2Y11.19%
EPS Next 3Y10.91%
EPS Next 5Y10.27%
Revenue Next Year7.89%
Revenue Next 2Y7.51%
Revenue Next 3Y7.44%
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
Based on the Price/Earnings ratio of 48.34, the valuation of CTAS can be described as expensive.
CTAS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CTAS to the average of the S&P500 Index (27.14), we can say CTAS is valued expensively.
The Price/Forward Earnings ratio is 43.10, which means the current valuation is very expensive for CTAS.
The rest of the industry has a similar Price/Forward Earnings ratio as CTAS.
CTAS is valuated expensively when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.34 | ||
| Fwd PE | 43.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTAS is valued a bit more expensive than 61.90% of the companies in the same industry.
CTAS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.9 | ||
| EV/EBITDA | 30.86 |
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)3.98
PEG (5Y)2.87
EPS Next 2Y11.19%
EPS Next 3Y10.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, CTAS is not a good candidate for dividend investing.
CTAS's Dividend Yield is a higher than the industry average which is at 2.36.
With a Dividend Yield of 0.83, CTAS pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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
33.84% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
CTAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.84%
EPS Next 2Y11.19%
EPS Next 3Y10.91%
213.2
+0.21 (+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 Cap85.92B
Analysts70
Price Target226.91 (6.43%)
Short Float %1.61%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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)2.4%
PT rev (3m)4.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.34 | ||
| Fwd PE | 43.1 | ||
| P/S | 8.31 | ||
| P/FCF | 48.9 | ||
| P/OCF | 39.67 | ||
| P/B | 18.34 | ||
| P/tB | 88.17 | ||
| EV/EBITDA | 30.86 |
EPS(TTM)4.41
EY2.07%
EPS(NY)4.95
Fwd EY2.32%
FCF(TTM)4.36
FCFY2.05%
OCF(TTM)5.37
OCFY2.52%
SpS25.66
BVpS11.62
TBVpS2.42
PEG (NY)3.98
PEG (5Y)2.87
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 | 13.77 |
F-Score8
WACC8.76%
ROIC/WACC2.63
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 3Y10.91%
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 2Y7.51%
Revenue Next 3Y7.44%
Revenue Next 5Y7.57%
EBIT growth 1Y14.07%
EBIT growth 3Y14.13%
EBIT growth 5Y14.55%
EBIT Next Year30.92%
EBIT Next 3Y15.28%
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%