190.26 USD
+3.56 (+1.91%)
190.2 USD
-0.06 (-0.03%)
CTAS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 80 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
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.
In the past 5 years CTAS always reported a positive cash flow from operatings.
1.2 Ratios
CTAS has a Return On Assets of 18.75%. This is amongst the best in the industry. CTAS outperforms 100.00% of its industry peers.
CTAS has a better Return On Equity (38.79%) than 96.25% of its industry peers.
CTAS has a Return On Invested Capital of 23.16%. This is amongst the best in the industry. CTAS outperforms 96.25% of its industry peers.
CTAS had an Average Return On Invested Capital over the past 3 years of 21.68%. This is significantly above the industry average of 10.60%.
The 3 year average ROIC (21.68%) for CTAS is below the current ROIC(23.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 38.79% | ||
| ROIC | 23.16% |
ROA(3y)17.06%
ROA(5y)15.93%
ROE(3y)36.52%
ROE(5y)35.33%
ROIC(3y)21.68%
ROIC(5y)20.31%
1.3 Margins
CTAS has a better Profit Margin (17.48%) than 97.50% of its industry peers.
In the last couple of years the Profit Margin of CTAS has grown nicely.
The Operating Margin of CTAS (22.89%) is better than 97.50% of its industry peers.
CTAS's Operating Margin has improved in the last couple of years.
The Gross Margin of CTAS (50.10%) is better than 90.00% of its industry peers.
In the last couple of years the Gross Margin of CTAS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.89% | ||
| PM (TTM) | 17.48% | ||
| GM | 50.1% |
OM growth 3Y3.91%
OM growth 5Y6.07%
PM growth 3Y3.71%
PM growth 5Y7.35%
GM growth 3Y2.66%
GM growth 5Y1.86%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for CTAS has been reduced compared to 5 years ago.
CTAS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.86 indicates that CTAS is not in any danger for bankruptcy at the moment.
CTAS has a Altman-Z score of 12.86. This is amongst the best in the industry. CTAS outperforms 95.00% of its industry peers.
The Debt to FCF ratio of CTAS is 1.43, which is an excellent value as it means it would take CTAS, only 1.43 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.43, CTAS belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that CTAS is somewhat dependend on debt financing.
The Debt to Equity ratio of CTAS (0.51) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for CTAS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 12.86 |
ROIC/WACC2.67
WACC8.66%
2.3 Liquidity
CTAS has a Current Ratio of 2.24. This indicates that CTAS is financially healthy and has no problem in meeting its short term obligations.
CTAS has a better Current ratio (2.24) than 75.00% of its industry peers.
CTAS has a Quick Ratio of 1.94. This is a normal value and indicates that CTAS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CTAS (1.94) is better than 78.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
CTAS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.63%, 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 16.84% on average per year.
The Revenue has been growing slightly by 7.75% in the past year.
Measured over the past years, CTAS shows a small growth in Revenue. The Revenue has been growing by 7.85% on average per year.
EPS 1Y (TTM)11.63%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%11.01%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%9.3%
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 10.27% on average per year.
CTAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.57% yearly.
EPS Next Y12.71%
EPS Next 2Y11.73%
EPS Next 3Y11.2%
EPS Next 5Y10.27%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y7.65%
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
CTAS is valuated quite expensively with a Price/Earnings ratio of 41.09.
Compared to the rest of the industry, the Price/Earnings ratio of CTAS is on the same level as its industry peers.
CTAS is valuated expensively when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 34.56, the valuation of CTAS can be described as expensive.
CTAS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CTAS to the average of the S&P500 Index (23.70), we can say CTAS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.09 | ||
| Fwd PE | 34.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTAS is valued a bit more expensive than 60.00% 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 | 45.09 | ||
| EV/EBITDA | 26.95 |
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)3.23
PEG (5Y)2.44
EPS Next 2Y11.73%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, CTAS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.90, CTAS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.96, CTAS pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
On average, the dividend of CTAS grows each year by 18.49%, which is quite nice.
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)18.49%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
34.21% 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.
DP34.21%
EPS Next 2Y11.73%
EPS Next 3Y11.2%
190.26
+3.56 (+1.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners66.98%
Inst Owner Change0%
Ins Owners1.65%
Ins Owner Change0.07%
Market Cap76.46B
Revenue(TTM)10.34B
Net Income(TTM)1.84B
Analysts70.37
Price Target220.68 (15.99%)
Short Float %2.11%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend1.51
Dividend Growth(5Y)18.49%
DP34.21%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.48%
Min EPS beat(2)-0.85%
Max EPS beat(2)-0.11%
EPS beat(4)2
Avg EPS beat(4)2.33%
Min EPS beat(4)-0.85%
Max EPS beat(4)5.32%
EPS beat(8)6
Avg EPS beat(8)4.01%
EPS beat(12)9
Avg EPS beat(12)2.95%
EPS beat(16)13
Avg EPS beat(16)3.44%
Revenue beat(2)0
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.39%
Revenue beat(4)0
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-0.39%
Revenue beat(8)0
Avg Revenue beat(8)-1.28%
Revenue beat(12)1
Avg Revenue beat(12)-1.05%
Revenue beat(16)4
Avg Revenue beat(16)-0.58%
PT rev (1m)-1.2%
PT rev (3m)-1.46%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.09 | ||
| Fwd PE | 34.56 | ||
| P/S | 7.24 | ||
| P/FCF | 45.09 | ||
| P/OCF | 36.17 | ||
| P/B | 16.08 | ||
| P/tB | 88.12 | ||
| EV/EBITDA | 26.95 |
EPS(TTM)4.63
EY2.43%
EPS(NY)5.51
Fwd EY2.89%
FCF(TTM)4.22
FCFY2.22%
OCF(TTM)5.26
OCFY2.76%
SpS26.27
BVpS11.83
TBVpS2.16
PEG (NY)3.23
PEG (5Y)2.44
Graham Number35.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.75% | ||
| ROE | 38.79% | ||
| ROCE | 29.01% | ||
| ROIC | 23.16% | ||
| ROICexc | 23.55% | ||
| ROICexgc | 44.83% | ||
| OM | 22.89% | ||
| PM (TTM) | 17.48% | ||
| GM | 50.1% | ||
| FCFM | 16.06% |
ROA(3y)17.06%
ROA(5y)15.93%
ROE(3y)36.52%
ROE(5y)35.33%
ROIC(3y)21.68%
ROIC(5y)20.31%
ROICexc(3y)22.42%
ROICexc(5y)21.1%
ROICexgc(3y)45.31%
ROICexgc(5y)44.66%
ROCE(3y)27.16%
ROCE(5y)25.44%
ROICexgc growth 3Y4.19%
ROICexgc growth 5Y9.87%
ROICexc growth 3Y7.31%
ROICexc growth 5Y10.45%
OM growth 3Y3.91%
OM growth 5Y6.07%
PM growth 3Y3.71%
PM growth 5Y7.35%
GM growth 3Y2.66%
GM growth 5Y1.86%
F-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 82.77% | ||
| Cap/Sales | 3.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.35% | ||
| Profit Quality | 91.91% | ||
| Current Ratio | 2.24 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 12.86 |
F-Score7
WACC8.66%
ROIC/WACC2.67
Cap/Depr(3y)83.77%
Cap/Depr(5y)69.7%
Cap/Sales(3y)3.99%
Cap/Sales(5y)3.41%
Profit Quality(3y)98.91%
Profit Quality(5y)102.51%
High Growth Momentum
Growth
EPS 1Y (TTM)11.63%
EPS 3Y15.77%
EPS 5Y16.84%
EPS Q2Q%11.01%
EPS Next Y12.71%
EPS Next 2Y11.73%
EPS Next 3Y11.2%
EPS Next 5Y10.27%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y9.6%
Revenue growth 5Y7.85%
Sales Q2Q%9.3%
Revenue Next Year8.68%
Revenue Next 2Y7.99%
Revenue Next 3Y7.65%
Revenue Next 5Y7.57%
EBIT growth 1Y13.5%
EBIT growth 3Y13.89%
EBIT growth 5Y14.4%
EBIT Next Year31.7%
EBIT Next 3Y15.74%
EBIT Next 5Y12.98%
FCF growth 1Y34.88%
FCF growth 3Y10.65%
FCF growth 5Y10.61%
OCF growth 1Y30.07%
OCF growth 3Y12.1%
OCF growth 5Y10.89%
CINTAS CORP / CTAS FAQ
Can you provide the ChartMill fundamental rating for CINTAS CORP?
ChartMill assigns a fundamental rating of 7 / 10 to CTAS.
What is the valuation status for CTAS stock?
ChartMill assigns a valuation rating of 2 / 10 to CINTAS CORP (CTAS). This can be considered as Overvalued.
Can you provide the profitability details for CINTAS CORP?
CINTAS CORP (CTAS) has a profitability rating of 10 / 10.
What is the financial health of CINTAS CORP (CTAS) stock?
The financial health rating of CINTAS CORP (CTAS) is 9 / 10.
Can you provide the dividend sustainability for CTAS stock?
The dividend rating of CINTAS CORP (CTAS) is 5 / 10 and the dividend payout ratio is 34.21%.