| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
CTAS Overview
Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America.
Cintas Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$392.86 |
| 52 Week High | US$307.65 |
| 52 Week Low | US$409.80 |
| Beta | 1.48 |
| 1 Month Change | 0.38% |
| 3 Month Change | 10.71% |
| 1 Year Change | 23.44% |
| 3 Year Change | 85.57% |
| 5 Year Change | 244.13% |
| Change since IPO | 7,845.48% |
Recent News & Updates
Calculating The Intrinsic Value Of Cintas Corporation (NASDAQ:CTAS)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Cintas Corporation...
Cintas Corporation: Quality At A High Price
Cintas Corporation has a history of consistent revenue and profitability growth. The company is a quality prospect for investors, but shares are awfully pricey at this point in time. While the firm will likely fare well in the long run, upside is probably limited.
Shareholder Returns
| CTAS | US Commercial Services | US Market | |
|---|---|---|---|
| 7D | -2.7% | -1.5% | -0.6% |
| 1Y | 23.4% | 26.5% | 33.8% |
Return vs Industry: CTAS underperformed the US Commercial Services industry which returned 26.5% over the past year.
Return vs Market: CTAS underperformed the US Market which returned 33.8% over the past year.
Price Volatility
| CTAS volatility | |
|---|---|
| CTAS Beta | 1.48 |
| Industry Beta | 1.04 |
| Market Beta | 1 |
Stable Share Price: CTAS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CTAS's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1968 | 40,000 | Todd Schneider | https://www.cintas.com |
Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.
Valuation
Is Cintas undervalued compared to its fair value and its price relative to the market?
37.03x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CTAS ($392.86) is trading above our estimate of fair value ($383.43)
Significantly Below Fair Value: CTAS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CTAS is poor value based on its PE Ratio (37x) compared to the US Commercial Services industry average (32.2x).
PE vs Market: CTAS is poor value based on its PE Ratio (37x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: CTAS is poor value based on its PEG Ratio (5.9x)
Price to Book Ratio
PB vs Industry: CTAS is overvalued based on its PB Ratio (11.1x) compared to the US Commercial Services industry average (2.7x).
Future Growth
How is Cintas forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
6.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CTAS's forecast earnings growth (6.3% per year) is above the savings rate (2%).
Earnings vs Market: CTAS's earnings (6.3% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: CTAS's earnings are forecast to grow, but not significantly.
Revenue vs Market: CTAS's revenue (6.8% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: CTAS's revenue (6.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CTAS's Return on Equity is forecast to be high in 3 years time (33.8%)
Past Performance
How has Cintas performed over the past 5 years?
17.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CTAS has high quality earnings.
Growing Profit Margin: CTAS's current net profit margins (15.5%) are higher than last year (12.3%).
Past Earnings Growth Analysis
Earnings Trend: CTAS's earnings have grown by 17.8% per year over the past 5 years.
Accelerating Growth: CTAS's earnings growth over the past year (27.1%) exceeds its 5-year average (17.8% per year).
Earnings vs Industry: CTAS earnings growth over the past year (27.1%) underperformed the Commercial Services industry 30.4%.
Return on Equity
High ROE: CTAS's Return on Equity (30.1%) is considered high.
Financial Health
How is Cintas's financial position?
Financial Position Analysis
Short Term Liabilities: CTAS's short term assets ($2.8B) exceed its short term liabilities ($1.9B).
Long Term Liabilities: CTAS's short term assets ($2.8B) exceed its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: CTAS's debt to equity ratio (70.6%) is considered high.
Reducing Debt: CTAS's debt to equity ratio has reduced from 71.2% to 70.6% over the past 5 years.
Debt Coverage: CTAS's debt is well covered by operating cash flow (52.3%).
Interest Coverage: CTAS's interest payments on its debt are well covered by EBIT (14.2x coverage).
Balance Sheet
Dividend
What is Cintas's current dividend yield, its reliability and sustainability?
0.97%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CTAS's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: CTAS's dividend (0.97%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: CTAS's dividends per share have been stable in the past 10 years.
Growing Dividend: CTAS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.6%), CTAS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CTAS's dividends in 3 years are forecast to be well covered by earnings (39.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Todd Schneider (53 yo)
0.25
Tenure
US$2,486,507
Compensation
Mr. Todd M. Schneider serves as Chief Executive Officer & President and a Director at Cintas Corporation since June 1, 2021. Mr. Schneider had been the Chief Operating Officer and Executive Vice President...
CEO Compensation Analysis
Compensation vs Market: Todd's total compensation ($USD2.49M) is below average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: CTAS's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: CTAS's board of directors are considered experienced (7.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Cintas Corporation's 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$40.861b
- Shares outstanding: 104.01m
- Website: https://www.cintas.com
Number of Employees
Location
- Cintas Corporation
- 6800 Cintas Boulevard
- PO Box 625737
- Cincinnati
- Ohio
- 45262-5737
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:02 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/05/31 |
| Annual Earnings | 2021/05/31 |
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.