CINTAS CORP (CTAS)
US1729081059 - Common Stock
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 quite expensive at the moment. It does show a decent growth rate. These ratings could make CTAS a good candidate 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.
CTAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.68%, CTAS belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
Looking at the Return On Equity, with a value of 35.37%, CTAS belongs to the top of the industry, outperforming 97.59% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.95%, CTAS belongs to the best of the industry, outperforming 96.39% 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 10.00%.
The 3 year average ROIC (19.00%) for CTAS is below the current ROIC(20.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.68% | ||
| ROE | 35.37% | ||
| ROIC | 20.95% |
ROA(3y)14.73%
ROA(5y)13.46%
ROE(3y)33.94%
ROE(5y)31.56%
ROIC(3y)19%
ROIC(5y)17.21%
1.3 Margins
CTAS has a better Profit Margin (15.91%) than 96.39% of its industry peers.
CTAS's Profit Margin has improved in the last couple of years.
CTAS's Operating Margin of 21.17% is amongst the best of the industry. CTAS outperforms 95.18% of its industry peers.
CTAS's Operating Margin has improved in the last couple of years.
CTAS has a Gross Margin of 48.46%. This is amongst the best in the industry. CTAS outperforms 90.36% 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 | 21.17% | ||
| PM (TTM) | 15.91% | ||
| GM | 48.46% |
OM growth 3Y6.59%
OM growth 5Y5.96%
PM growth 3Y7.53%
PM growth 5Y3.49%
GM growth 3Y1.23%
GM growth 5Y1.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CTAS is creating value.
CTAS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTAS has less shares outstanding
CTAS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.16 indicates that CTAS is not in any danger for bankruptcy at the moment.
CTAS has a Altman-Z score of 12.16. This is amongst the best in the industry. CTAS outperforms 97.59% of its industry peers.
CTAS has a debt to FCF ratio of 1.62. This is a very positive value and a sign of high solvency as it would only need 1.62 years to pay back of all of its debts.
CTAS has a Debt to FCF ratio of 1.62. This is in the better half of the industry: CTAS outperforms 78.31% of its industry peers.
CTAS has a Debt/Equity ratio of 0.58. This is a neutral value indicating CTAS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, CTAS is in line with its industry, outperforming 53.01% 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 | 0.58 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 12.16 |
ROIC/WACC2.3
WACC9.12%
2.3 Liquidity
CTAS has a Current Ratio of 2.38. This indicates that CTAS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CTAS (2.38) is better than 78.31% of its industry peers.
CTAS has a Quick Ratio of 2.03. This indicates that CTAS is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.03, CTAS is doing good in the industry, outperforming 79.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.21% 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 17.08% on average per year.
CTAS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.34%.
Measured over the past years, CTAS shows a small growth in Revenue. The Revenue has been growing by 6.36% on average per year.
EPS 1Y (TTM)16.21%
EPS 3Y17.02%
EPS 5Y17.08%
EPS growth Q2Q22.29%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y7.56%
Revenue growth 5Y6.36%
Revenue growth Q2Q9.87%
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 9.24% yearly.
The Revenue is expected to grow by 8.23% on average over the next years. This is quite good.
EPS Next Y17.55%
EPS Next 2Y13.73%
EPS Next 3Y12.37%
EPS Next 5Y9.24%
Revenue Next Year9.18%
Revenue Next 2Y8.13%
Revenue Next 3Y7.76%
Revenue Next 5Y8.23%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 46.01, CTAS can be considered very expensive at the moment.
CTAS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.92, CTAS is valued quite expensively.
The Price/Forward Earnings ratio is 39.68, which means the current valuation is very expensive for CTAS.
CTAS's Price/Forward Earnings ratio is in line with the industry average.
CTAS is valuated expensively when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.01 | ||
| Fwd PE | 39.68 |
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 66.27% of the companies in the same industry.
CTAS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.3 | ||
| EV/EBITDA | 28.81 |
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.
The excellent profitability rating of CTAS may justify a higher PE ratio.
A more expensive valuation may be justified as CTAS's earnings are expected to grow with 12.37% in the coming years.
PEG (NY)2.62
PEG (5Y)2.69
EPS Next 2Y13.73%
EPS Next 3Y12.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, CTAS is not a good candidate for dividend investing.
CTAS's Dividend Yield is a higher than the industry average which is at 2.43.
With a Dividend Yield of 0.82, CTAS pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of CTAS grows each year by 21.67%, which is quite nice.
CTAS has been paying a dividend for at least 10 years, so it has a reliable track record.
CTAS has decreased its dividend in the last 3 years.
Dividend Growth(5Y)21.67%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CTAS pays out 34.11% of its income as dividend. This is a sustainable payout ratio.
CTAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.11%
EPS Next 2Y13.73%
EPS Next 3Y12.37%
CINTAS CORP
NASDAQ:CTAS (4/26/2024, 9:37:54 PM)
After market: 666.23 0 (0%)666.23
+0.98 (+0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.01 | ||
| Fwd PE | 39.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.62
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.68% | ||
| ROE | 35.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.17% | ||
| PM (TTM) | 15.91% | ||
| GM | 48.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.21%
EPS 3Y17.02%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.34%
Revenue growth 3Y7.56%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y