NasdaqGS:CTAS

Stock Analysis Report

Executive Summary

Cintas Corporation provides corporate identity uniforms and related business services primarily in North America, Latin America, Europe, and Asia.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Cintas's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

NasdaqGS:CTAS

-0.4%

US Commercial Services

-1.0%

US Market


1 Year Return

24.3%

NasdaqGS:CTAS

5.9%

US Commercial Services

-0.4%

US Market

CTAS outperformed the Commercial Services industry which returned 5.9% over the past year.

CTAS outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

CTASIndustryMarket
7 Day0.4%-0.4%-1.0%
30 Day1.4%-1.4%-3.3%
90 Day18.3%3.7%0.8%
1 Year25.7%24.3%9.9%5.9%1.9%-0.4%
3 Year140.7%132.4%64.2%53.2%39.4%30.4%
5 Year331.7%302.3%96.4%76.7%54.2%37.1%

Price Volatility Vs. Market

How volatile is Cintas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cintas undervalued based on future cash flows and its price relative to the stock market?

32.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cintas's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cintas's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Cintas is overvalued based on earnings compared to the US Commercial Services industry average.

Cintas is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cintas is poor value based on expected growth next year.


Price Based on Value of Assets

Cintas is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

How is Cintas expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cintas's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Cintas's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

Cintas's revenue growth is positive but not above the United States of America market average.

Cintas's earnings growth is positive but not above the United States of America market average.

Cintas's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cintas is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Cintas performed over the past 5 years?

19.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cintas's year on year earnings growth rate has been positive over the past 5 years.

Cintas's 1-year earnings growth is less than its 5-year average (13.1% vs 19.2%)

Cintas's earnings growth has exceeded the US Commercial Services industry average in the past year (13.1% vs -2.4%).


Return on Equity

Cintas has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Cintas used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Cintas's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cintas's financial position?


Financial Position Analysis

Cintas is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cintas's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cintas's level of debt (94.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (59.3% vs 94.9% today).

Debt is well covered by operating cash flow (37.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

What is Cintas's current dividend yield, its reliability and sustainability?

0.94%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Cintas's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Cintas's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Cintas is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Cintas is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Cintas's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

What is the CEO of Cintas's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Scott Farmer (60yo)

16.1yrs

Tenure

US$9,778,369

Compensation

Mr. Scott D. Farmer has been the Chief Executive Officer at Cintas Corporation since July 10, 2003. Mr. Farmer has been Chief Executive Officer of G&K Services, Inc. since March 21, 2017. He served as Rent ...


CEO Compensation Analysis

Scott's remuneration is about average for companies of similar size in United States of America.

Scott's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

52yo

Average Age

The tenure for the Cintas management team is about average.


Board Age and Tenure

7.7yrs

Average Tenure

66yo

Average Age

The tenure for the Cintas board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$1,389,86106 May 19
Joseph Scaminace
EntityIndividual
Role
Lead Director
Shares6,255
Max PriceUS$222.20
SellUS$501,86104 Apr 19
Thomas Frooman
EntityIndividual
Role
Senior VP
Shares2,415
Max PriceUS$207.81
SellUS$351,10615 Feb 19
Thomas Frooman
EntityIndividual
Role
Senior VP
Shares1,740
Max PriceUS$201.79
SellUS$604,92014 Feb 19
Ronald Tysoe
EntityIndividual
Role
Member of the Board of Directors
Shares3,000
Max PriceUS$201.64
SellUS$200,60012 Feb 19
Michael Thompson
EntityIndividual
Role
Executive VP & Chief Administrative Officer
Shares1,000
Max PriceUS$200.60

Ownership Breakdown


Management Team

  • Todd Schneider (51yo)

    COO & Executive VP

    • Tenure: 1.1yrs
  • Mike Thompson (53yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 1.1yrs
    • Compensation: $472.43k
  • Paul Adler (48yo)

    VP & Treasurer

    • Tenure: 4.2yrs
    • Compensation: $718.93k
  • Scott Farmer (60yo)

    Chairman & CEO

    • Tenure: 16.1yrs
    • Compensation: $9.78m
  • Michelle Goret

    Vice President of Corporate Communications

  • Thomas Frooman (52yo)

    Senior VP

    • Tenure: 17.7yrs
    • Compensation: $2.78m
  • Richard Farmer (84yo)

    Founder & Chairman Emeritus

    • Compensation: $349.78k
  • Bob Mitchell

    Chief Marketing Officer

    • Tenure: 3.2yrs
  • Matt Hough

    VP & Chief Information Officer

    • Tenure: 0.2yrs
  • Mike Hansen (51yo)

    CFO & Executive VP

    • Tenure: 4.5yrs
    • Compensation: $2.82m

Board Members

  • Joe Scaminace (66yo)

    Lead Director

    • Compensation: $217.77k
  • Karen Carnahan (65yo)

    Director

    • Tenure: 0.1yrs
    • Compensation: $382.75k
  • Scott Farmer (60yo)

    Chairman & CEO

    • Tenure: 2.9yrs
    • Compensation: $9.78m
  • Melanie Barstad (66yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: $201.77k
  • Gerald Adolph (65yo)

    Director

    • Tenure: 13.1yrs
    • Compensation: $211.37k
  • Richard Farmer (84yo)

    Founder & Chairman Emeritus

    • Compensation: $349.78k
  • Ron Tysoe (66yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: $220.97k
  • Bob Coletti (62yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: $194.57k
  • John Barrett (70yo)

    Director

    • Tenure: 7.6yrs
    • Compensation: $208.07k
  • Jim Johnson (72yo)

    Director

    • Tenure: 10.4yrs
    • Compensation: $208.07k

Company Information

Cintas Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cintas Corporation
  • Ticker: CTAS
  • Exchange: NasdaqGS
  • Founded: 1968
  • Industry: diversified support services
  • Sector: commercial services
  • Market Cap: US$27.098b
  • Shares outstanding: 102.49m
  • Website: Click here

Number of Employees


Location

  • Cintas Corporation
  • 6800 Cintas Boulevard
  • PO Box 625737
  • Cincinnati
  • Ohio
  • 45262
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTASNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1983
CITDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1983
CTASWBAG (Wiener Boerse AG)YesCommon StockATEURAug 1983

Biography

Cintas Corporation provides corporate identity uniforms and related business services primarily in North America, Latin America, Europe, and Asia. It operates through Uniform Rental and Facility Services a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 23:35
End of Day Share Price2019/08/16 00:00
Earnings2019/05/31
Annual Earnings2019/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.