CINTAS CORP (CTAS)
US1729081059 - Common Stock
Overall CTAS gets a fundamental rating of 6 out of 10. We evaluated CTAS against 84 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 does not seem to be growing, but still is valued expensively.
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.
CTAS had positive earnings in 4 of the past 5 years.
CTAS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CTAS's Return On Assets of 20.95% is amongst the best of the industry. CTAS outperforms 98.78% of its industry peers.
CTAS has a better Return On Equity (44.43%) than 98.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.21%, CTAS belongs to the top of the industry, outperforming 98.78% 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 9.40%.
The last Return On Invested Capital (26.21%) for CTAS is above the 3 year average (19.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.95% | ||
| ROE | 44.43% | ||
| ROIC | 26.21% |
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
Looking at the Profit Margin, with a value of 16.01%, CTAS belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
In the last couple of years the Profit Margin of CTAS has grown nicely.
With an excellent Operating Margin value of 21.21%, CTAS belongs to the best of the industry, outperforming 95.12% of the companies in the same industry.
CTAS's Operating Margin has improved in the last couple of years.
CTAS has a better Gross Margin (48.51%) than 87.80% of its industry peers.
CTAS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.21% | ||
| PM (TTM) | 16.01% | ||
| GM | 48.51% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CTAS is creating value.
There is no outstanding debt for CTAS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CTAS has an Altman-Z score of 13.76. This indicates that CTAS is financially healthy and has little risk of bankruptcy at the moment.
CTAS has a better Altman-Z score (13.76) than 97.56% of its industry peers.
The Debt to FCF ratio of CTAS is 1.62, which is an excellent value as it means it would take CTAS, only 1.62 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.62, CTAS belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
CTAS has a Debt/Equity ratio of 0.58. This is a neutral value indicating CTAS is somewhat dependend on debt financing.
CTAS has a Debt to Equity ratio (0.58) which is in line with its industry peers.
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 | 0.58 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 13.76 |
ROIC/WACC3
WACC8.74%
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.
CTAS has a better Current ratio (2.38) than 79.27% 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.
Looking at the Quick ratio, with a value of 2.03, CTAS belongs to the top of the industry, outperforming 81.71% 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 16.64% over the past year.
The Earnings Per Share has been growing by 14.78% on average over the past years. This is quite good.
EPS 1Y (TTM)16.64%
EPS 3Y13.92%
EPS 5Y14.78%
EPS Q2Q%19.82%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%8.16%
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 9.00% on average per year.
Based on estimates for the next years, CTAS will show a small growth in Revenue. The Revenue will grow by 7.70% on average per year.
EPS Next Y10.86%
EPS Next 2Y10.34%
EPS Next 3Y9.35%
EPS Next 5Y9%
Revenue Next Year7.08%
Revenue Next 2Y7.1%
Revenue Next 3Y8.01%
Revenue Next 5Y7.7%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CTAS is valuated quite expensively with a Price/Earnings ratio of 50.20.
Compared to the rest of the industry, the Price/Earnings ratio of CTAS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 24.29, CTAS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 45.28, 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 (20.35), we can say CTAS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.2 | ||
| Fwd PE | 45.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTAS is valued a bit more expensive than the industry average as 67.07% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as CTAS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.54 | ||
| EV/EBITDA | 26.99 |
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)4.62
PEG (5Y)3.4
EPS Next 2Y10.34%
EPS Next 3Y9.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, CTAS is not a good candidate for dividend investing.
CTAS's Dividend Yield is a higher than the industry average which is at 2.22.
Compared to an average S&P500 Dividend Yield of 2.29, CTAS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of CTAS grows each year by 21.67%, which is quite nice.
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
27.15% of the earnings are spent on dividend by CTAS. This is a low number and sustainable payout ratio.
CTAS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.15%
EPS Next 2Y10.34%
EPS Next 3Y9.35%
CINTAS CORP
NASDAQ:CTAS (7/26/2024, 9:23:02 AM)
760.02
+5.18 (+0.69%)
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 Cap77.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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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 | 50.2 | ||
| Fwd PE | 45.28 | ||
| 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)4.62
PEG (5Y)3.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.95% | ||
| ROE | 44.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.21% | ||
| PM (TTM) | 16.01% | ||
| GM | 48.51% | ||
| 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 Turnover1.31
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)
High Growth Momentum
Growth
EPS 1Y (TTM)16.64%
EPS 3Y13.92%
EPS 5Y
EPS Q2Q%
EPS Next Y10.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales 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