CINTAS CORP (CTAS)

US1729081059 - Common Stock

628.36  -0.25 (-0.04%)

After market: 628.36 0 (0%)

Fundamental Rating

7

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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, CTAS is valued expensive at the moment. These ratings would make CTAS suitable for quality investing!



9

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

With an excellent Return On Assets value of 16.18%, CTAS belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
CTAS has a Return On Equity of 35.70%. This is amongst the best in the industry. CTAS outperforms 92.77% of its industry peers.
The Return On Invested Capital of CTAS (20.84%) is better than 96.39% of its industry peers.
CTAS had an Average Return On Invested Capital over the past 3 years of 19.00%. This is significantly above the industry average of 9.32%.
The 3 year average ROIC (19.00%) for CTAS is below the current ROIC(20.84%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 16.18%
ROE 35.7%
ROIC 20.84%
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 Profit Margin of 15.51%. This is amongst the best in the industry. CTAS outperforms 93.98% of its industry peers.
In the last couple of years the Profit Margin of CTAS has grown nicely.
The Operating Margin of CTAS (20.86%) is better than 96.39% of its industry peers.
CTAS's Operating Margin has improved in the last couple of years.
CTAS's Gross Margin of 47.92% is amongst the best of the industry. CTAS outperforms 87.95% 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 RankSector Rank
OM 20.86%
PM (TTM) 15.51%
GM 47.92%
OM growth 3Y6.59%
OM growth 5Y5.96%
PM growth 3Y7.53%
PM growth 5Y3.49%
GM growth 3Y1.23%
GM growth 5Y1.06%

8

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.
Compared to 1 year ago, CTAS has about the same amount of shares outstanding.
The number of shares outstanding for CTAS has been reduced compared to 5 years ago.
Compared to 1 year ago, CTAS has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 11.52 indicates that CTAS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.52, CTAS belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
The Debt to FCF ratio of CTAS is 2.03, which is a good value as it means it would take CTAS, 2.03 years of fcf income to pay off all of its debts.
CTAS's Debt to FCF ratio of 2.03 is fine compared to the rest of the industry. CTAS outperforms 78.31% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that CTAS is somewhat dependend on debt financing.
CTAS has a Debt to Equity ratio (0.62) 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 RankSector Rank
Debt/Equity 0.62
Debt/FCF 2.03
Altman-Z 11.52
ROIC/WACC2.4
WACC8.69%

2.3 Liquidity

A Current Ratio of 2.24 indicates that CTAS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.24, CTAS is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
A Quick Ratio of 1.89 indicates that CTAS should not have too much problems paying its short term obligations.
CTAS has a Quick ratio of 1.89. This is in the better half of the industry: CTAS outperforms 78.31% of its industry peers.
Industry RankSector Rank
Current Ratio 2.24
Quick Ratio 1.89

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.74% 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.
The Revenue has grown by 9.76% in the past year. This is quite good.
CTAS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.36% yearly.
EPS 1Y (TTM)14.74%
EPS 3Y17.02%
EPS 5Y17.08%
EPS growth Q2Q15.71%
Revenue 1Y (TTM)9.76%
Revenue growth 3Y7.56%
Revenue growth 5Y6.36%
Revenue growth Q2Q9.3%

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.
Based on estimates for the next years, CTAS will show a quite strong growth in Revenue. The Revenue will grow by 8.23% on average per year.
EPS Next Y14.7%
EPS Next 2Y12.63%
EPS Next 3Y11.7%
EPS Next 5Y9.24%
Revenue Next Year8.78%
Revenue Next 2Y8.1%
Revenue Next 3Y7.86%
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.

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 45.60 indicates a quite expensive valuation of CTAS.
The rest of the industry has a similar Price/Earnings ratio as CTAS.
The average S&P500 Price/Earnings ratio is at 25.86. CTAS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 38.16, which means the current valuation is very expensive for CTAS.
The rest of the industry has a similar Price/Forward Earnings ratio as CTAS.
The average S&P500 Price/Forward Earnings ratio is at 21.87. CTAS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 45.6
Fwd PE 38.16

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 67.47% of the companies in the same industry.
CTAS's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 48.14
EV/EBITDA 28.31

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)3.1
PEG (5Y)2.67
EPS Next 2Y12.63%
EPS Next 3Y11.7%

4

5. Dividend

5.1 Amount

With a yearly dividend of 0.86%, CTAS is not a good candidate for dividend investing.
CTAS's Dividend Yield is a higher than the industry average which is at 2.42.
Compared to an average S&P500 Dividend Yield of 2.44, CTAS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.86%

5.2 History

The dividend of CTAS is nicely growing with an annual growth rate of 21.67%!
CTAS has paid a dividend for at least 10 years, which is 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 34.41% 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.
DP34.41%
EPS Next 2Y12.63%
EPS Next 3Y11.7%

CINTAS CORP

NASDAQ:CTAS (3/1/2024, 7:00:01 PM)

After market: 628.36 0 (0%)

628.36

-0.25 (-0.04%)

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 Cap63.70B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.86%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 45.6
Fwd PE 38.16
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)3.1
PEG (5Y)2.67
Profitability
Industry RankSector Rank
ROA 16.18%
ROE 35.7%
ROCE
ROIC
ROICexc
ROICexgc
OM 20.86%
PM (TTM) 15.51%
GM 47.92%
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 Turnover1.04
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.24
Quick Ratio 1.89
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)14.74%
EPS 3Y17.02%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.76%
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