CINTAS CORP (CTAS) Stock Fundamental Analysis
NASDAQ:CTAS - Nasdaq - US1729081059 - Common Stock - Currency: USD
Overall CTAS gets a fundamental rating of 6 out of 10. We evaluated CTAS against 83 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. CTAS is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make CTAS a good candidate 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.
CTAS had positive earnings in each of the past 5 years.
CTAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTAS's Return On Assets of 18.44% is amongst the best of the industry. CTAS outperforms 95.18% of its industry peers.
With an excellent Return On Equity value of 38.59%, CTAS belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
CTAS has a Return On Invested Capital of 23.98%. This is amongst the best in the industry. CTAS outperforms 96.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTAS is significantly above the industry average of 11.67%.
The last Return On Invested Capital (23.98%) for CTAS is above the 3 year average (20.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | 38.59% | ||
| ROIC | 23.98% |
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
The Profit Margin of CTAS (17.47%) is better than 90.36% of its industry peers.
CTAS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.77%, CTAS belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
CTAS's Operating Margin has improved in the last couple of years.
CTAS's Gross Margin of 49.92% is amongst the best of the industry. CTAS outperforms 86.75% of its industry peers.
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 | 22.77% | ||
| PM (TTM) | 17.47% | ||
| GM | 49.92% |
OM growth 3Y3.33%
OM growth 5Y5.29%
PM growth 3Y1.71%
PM growth 5Y5.13%
GM growth 3Y1.59%
GM growth 5Y1.47%
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 increased compared to 1 year ago.
Compared to 5 years ago, CTAS has more shares outstanding
The debt/assets ratio for CTAS has been reduced compared to a year ago.
2.2 Solvency
CTAS has an Altman-Z score of 14.42. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CTAS (14.42) is better than 95.18% of its industry peers.
The Debt to FCF ratio of CTAS is 1.36, which is an excellent value as it means it would take CTAS, only 1.36 years of fcf income to pay off all of its debts.
CTAS's Debt to FCF ratio of 1.36 is amongst the best of the industry. CTAS outperforms 81.93% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that CTAS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.44, CTAS perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 14.42 |
ROIC/WACC2.39
WACC10.05%
2.3 Liquidity
A Current Ratio of 1.72 indicates that CTAS should not have too much problems paying its short term obligations.
CTAS's Current ratio of 1.72 is fine compared to the rest of the industry. CTAS outperforms 60.24% of its industry peers.
A Quick Ratio of 1.50 indicates that CTAS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, CTAS is in line with its industry, outperforming 59.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
CTAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.27%, which is quite good.
Measured over the past years, CTAS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.78% on average per year.
The Revenue has been growing slightly by 7.79% in the past year.
The Revenue has been growing slightly by 6.84% on average over the past years.
EPS 1Y (TTM)19.27%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%17.71%
Revenue 1Y (TTM)7.79%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%8.44%
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 11.83% yearly.
CTAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.67% yearly.
EPS Next Y18.29%
EPS Next 2Y14.25%
EPS Next 3Y12.71%
EPS Next 5Y11.83%
Revenue Next Year7.38%
Revenue Next 2Y7.28%
Revenue Next 3Y7.15%
Revenue Next 5Y7.67%
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 stable.
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
CTAS is valuated quite expensively with a Price/Earnings ratio of 51.38.
The rest of the industry has a similar Price/Earnings ratio as CTAS.
The average S&P500 Price/Earnings ratio is at 26.32. CTAS is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 44.93, CTAS can be considered very expensive at the moment.
CTAS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. CTAS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.38 | ||
| Fwd PE | 44.93 |
4.2 Price Multiples
CTAS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CTAS is more expensive than 65.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTAS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.06 | ||
| EV/EBITDA | 32.84 |
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.
CTAS has an outstanding profitability rating, which may justify a higher PE ratio.
CTAS's earnings are expected to grow with 12.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.81
PEG (5Y)3.48
EPS Next 2Y14.25%
EPS Next 3Y12.71%
5. Dividend
5.1 Amount
CTAS has a yearly dividend return of 0.70%, which is pretty low.
CTAS's Dividend Yield is a higher than the industry average which is at 2.56.
With a Dividend Yield of 0.70, CTAS pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of CTAS decreases each year by -0.11%.
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)-0.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
33.37% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
DP33.37%
EPS Next 2Y14.25%
EPS Next 3Y12.71%
221.98
-1.59 (-0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.28%
Inst Owner Change4.57%
Ins Owners1.72%
Ins Owner Change-0.02%
Market Cap89.63B
Analysts70.37
Price Target216.41 (-2.51%)
Short Float %1.43%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Yearly Dividend2.1
Dividend Growth(5Y)-0.11%
DP33.37%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.13%
Min EPS beat(2)4.93%
Max EPS beat(2)5.32%
EPS beat(4)4
Avg EPS beat(4)6.62%
Min EPS beat(4)3.09%
Max EPS beat(4)13.14%
EPS beat(8)7
Avg EPS beat(8)4.26%
EPS beat(12)11
Avg EPS beat(12)3.79%
EPS beat(16)15
Avg EPS beat(16)4.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-1.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.37%
Revenue beat(12)3
Avg Revenue beat(12)-0.63%
Revenue beat(16)4
Avg Revenue beat(16)-0.61%
PT rev (1m)0%
PT rev (3m)6.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.38 | ||
| Fwd PE | 44.93 | ||
| P/S | 8.84 | ||
| P/FCF | 49.06 | ||
| P/OCF | 40.32 | ||
| P/B | 19.52 | ||
| P/tB | 119.62 | ||
| EV/EBITDA | 32.84 |
EPS(TTM)4.32
EY1.95%
EPS(NY)4.94
Fwd EY2.23%
FCF(TTM)4.52
FCFY2.04%
OCF(TTM)5.51
OCFY2.48%
SpS25.12
BVpS11.37
TBVpS1.86
PEG (NY)2.81
PEG (5Y)3.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | 38.59% | ||
| ROCE | 30.12% | ||
| ROIC | 23.98% | ||
| ROICexc | 24.76% | ||
| ROICexgc | 51.32% | ||
| OM | 22.77% | ||
| PM (TTM) | 17.47% | ||
| GM | 49.92% | ||
| FCFM | 18.01% |
ROA(3y)15.96%
ROA(5y)14.52%
ROE(3y)36.06%
ROE(5y)32.99%
ROIC(3y)20.29%
ROIC(5y)18.5%
ROICexc(3y)20.86%
ROICexc(5y)19.2%
ROICexgc(3y)43.4%
ROICexgc(5y)41.05%
ROCE(3y)25.49%
ROCE(5y)23.23%
ROICexcg growth 3Y2.7%
ROICexcg growth 5Y9.17%
ROICexc growth 3Y7.28%
ROICexc growth 5Y9.85%
OM growth 3Y3.33%
OM growth 5Y5.29%
PM growth 3Y1.71%
PM growth 5Y5.13%
GM growth 3Y1.59%
GM growth 5Y1.47%
F-Score8
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.36 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 81.31% | ||
| Cap/Sales | 3.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.48% | ||
| Profit Quality | 103.1% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 14.42 |
F-Score8
WACC10.05%
ROIC/WACC2.39
Cap/Depr(3y)77.9%
Cap/Depr(5y)66.29%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.27%
Profit Quality(3y)102.17%
Profit Quality(5y)107.82%
High Growth Momentum
Growth
EPS 1Y (TTM)19.27%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%17.71%
EPS Next Y18.29%
EPS Next 2Y14.25%
EPS Next 3Y12.71%
EPS Next 5Y11.83%
Revenue 1Y (TTM)7.79%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%8.44%
Revenue Next Year7.38%
Revenue Next 2Y7.28%
Revenue Next 3Y7.15%
Revenue Next 5Y7.67%
EBIT growth 1Y15.97%
EBIT growth 3Y14.15%
EBIT growth 5Y12.5%
EBIT Next Year38.74%
EBIT Next 3Y17.94%
EBIT Next 5Y14.42%
FCF growth 1Y41%
FCF growth 3Y11.13%
FCF growth 5Y16.12%
OCF growth 1Y39.41%
OCF growth 3Y15.19%
OCF growth 5Y14.26%