CINTAS CORP (CTAS) Stock Fundamental Analysis
NASDAQ:CTAS - Nasdaq - US1729081059 - Common Stock - Currency: USD
Taking everything into account, CTAS scores 6 out of 10 in our fundamental rating. CTAS was compared to 83 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
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.
In the past 5 years CTAS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.44%, CTAS belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
Looking at the Return On Equity, with a value of 38.59%, CTAS belongs to the top 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 97.59% 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 3 year average ROIC (20.29%) for CTAS is below the current ROIC(23.98%), indicating increased profibility in the last year.
| 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
CTAS has a Profit Margin of 17.47%. This is amongst the best in the industry. CTAS outperforms 92.77% of its industry peers.
In the last couple of years the Profit Margin of CTAS has grown nicely.
Looking at the Operating Margin, with a value of 22.77%, CTAS belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
In the last couple of years the Operating Margin of CTAS has grown nicely.
CTAS has a better Gross Margin (49.92%) than 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
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 increased compared to 1 year ago.
Compared to 5 years ago, CTAS has more shares outstanding
Compared to 1 year ago, CTAS has an improved debt to assets ratio.
2.2 Solvency
CTAS has an Altman-Z score of 13.91. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
CTAS has a Altman-Z score of 13.91. This is amongst the best in the industry. CTAS outperforms 97.59% 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 has a better Debt to FCF ratio (1.36) than 80.72% of its industry peers.
CTAS has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
CTAS's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. CTAS outperforms 51.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | 13.91 |
ROIC/WACC2.72
WACC8.81%
2.3 Liquidity
CTAS has a Current Ratio of 1.72. This is a normal value and indicates that CTAS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CTAS (1.72) is better than 63.86% of its industry peers.
CTAS has a Quick Ratio of 1.50. 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 (1.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.27% over the past year.
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.
CTAS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.79%.
CTAS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.84% yearly.
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
Based on estimates for the next years, CTAS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.83% on average per year.
The Revenue is expected to grow by 7.67% on average over the next years.
EPS Next Y18.21%
EPS Next 2Y14.26%
EPS Next 3Y12.74%
EPS Next 5Y11.83%
Revenue Next Year7.37%
Revenue Next 2Y7.3%
Revenue Next 3Y7.19%
Revenue Next 5Y7.67%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 48.97, the valuation of CTAS can be described as expensive.
CTAS's Price/Earnings is on the same level as the industry average.
CTAS is valuated expensively when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
CTAS is valuated quite expensively with a Price/Forward Earnings ratio of 42.81.
The rest of the industry has a similar Price/Forward Earnings ratio as CTAS.
The average S&P500 Price/Forward Earnings ratio is at 20.86. CTAS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.97 | ||
| Fwd PE | 42.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTAS indicates a slightly more expensive valuation: CTAS is more expensive than 66.27% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CTAS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.75 | ||
| EV/EBITDA | 31.34 |
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.
CTAS's earnings are expected to grow with 12.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.69
PEG (5Y)3.31
EPS Next 2Y14.26%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, CTAS is not a good candidate for dividend investing.
CTAS's Dividend Yield is a higher than the industry average which is at 2.55.
With a Dividend Yield of 0.74, CTAS pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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 not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
CTAS pays out 33.37% of its income as dividend. This is a sustainable payout ratio.
DP33.37%
EPS Next 2Y14.26%
EPS Next 3Y12.74%
211.55
+2 (+0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners67.15%
Inst Owner Change1.11%
Ins Owners1.79%
Ins Owner Change0.01%
Market Cap85.42B
Analysts71.11
Price Target216.41 (2.3%)
Short Float %1.5%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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)1.45%
PT rev (3m)5.22%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)1.41%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.97 | ||
| Fwd PE | 42.81 | ||
| P/S | 8.42 | ||
| P/FCF | 46.75 | ||
| P/OCF | 38.42 | ||
| P/B | 18.6 | ||
| P/tB | 114 | ||
| EV/EBITDA | 31.34 |
EPS(TTM)4.32
EY2.04%
EPS(NY)4.94
Fwd EY2.34%
FCF(TTM)4.52
FCFY2.14%
OCF(TTM)5.51
OCFY2.6%
SpS25.12
BVpS11.37
TBVpS1.86
PEG (NY)2.69
PEG (5Y)3.31
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 | 13.91 |
F-Score8
WACC8.81%
ROIC/WACC2.72
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 Y18.21%
EPS Next 2Y14.26%
EPS Next 3Y12.74%
EPS Next 5Y11.83%
Revenue 1Y (TTM)7.79%
Revenue growth 3Y10.48%
Revenue growth 5Y6.84%
Sales Q2Q%8.44%
Revenue Next Year7.37%
Revenue Next 2Y7.3%
Revenue Next 3Y7.19%
Revenue Next 5Y7.67%
EBIT growth 1Y15.97%
EBIT growth 3Y14.15%
EBIT growth 5Y12.5%
EBIT Next Year39.89%
EBIT Next 3Y17.98%
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%