NasdaqGS:CTAS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid 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

Stable Share Price: CTAS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

CTAS

-2.1%

US Commercial Services

-1.4%

US Market


1 Year Return

25.2%

CTAS

6.9%

US Commercial Services

17.8%

US Market

Return vs Industry: CTAS exceeded the US Commercial Services industry which returned 6.9% over the past year.

Return vs Market: CTAS exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

CTASIndustryMarket
7 Day-2.8%-2.1%-1.4%
30 Day6.9%3.1%4.7%
90 Day11.9%10.1%8.2%
1 Year26.4%25.2%8.5%6.9%20.5%17.8%
3 Year130.6%123.3%48.3%38.8%42.2%32.7%
5 Year284.6%263.6%108.5%87.2%83.4%62.7%

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 compared to its fair value and its price relative to the market?

38.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CTAS ($338.5) is trading above our estimate of fair value ($251.19)

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 (38.4x) compared to the US Commercial Services industry average (27.3x).

PE vs Market: CTAS is poor value based on its PE Ratio (38.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CTAS is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: CTAS is overvalued based on its PB Ratio (9.8x) compared to the US Commercial Services industry average (1.5x).


Next Steps

Future Growth

How is Cintas forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTAS's forecast earnings growth (7.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CTAS's earnings (7.3% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: CTAS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CTAS's revenue (7.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CTAS's revenue (7.6% 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 (24.6%)


Next Steps

Past Performance

How has Cintas performed over the past 5 years?

19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTAS has high quality earnings.

Growing Profit Margin: CTAS's current net profit margins (13.1%) are higher than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: CTAS's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: CTAS's earnings growth over the past year (0.5%) is below its 5-year average (19.6% per year).

Earnings vs Industry: CTAS earnings growth over the past year (0.5%) exceeded the Commercial Services industry -9.7%.


Return on Equity

High ROE: CTAS's Return on Equity (25.7%) is considered high.


Next Steps

Financial Health

How is Cintas's financial position?


Financial Position Analysis

Short Term Liabilities: CTAS's short term assets ($2.7B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: CTAS's short term assets ($2.7B) do not cover its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: CTAS's debt to equity ratio (74.8%) is considered high.

Reducing Debt: CTAS's debt to equity ratio has increased from 70.3% to 74.8% over the past 5 years.

Debt Coverage: CTAS's debt is well covered by operating cash flow (49.2%).

Interest Coverage: CTAS's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet


Next Steps

Dividend

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

0.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTAS's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: CTAS's dividend (0.75%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

Stable Dividend: CTAS is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CTAS is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CTAS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CTAS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Scott Farmer (61 yo)

17.25yrs

Tenure

US$6,698,520

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

Compensation vs Market: Scott's total compensation ($USD6.70M) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Farmer
Chairman & CEO17.25yrsUS$6.70m14.59%
$ 5.2b
J. Hansen
CFO & Executive VP5.67yrsUS$1.70m0.073%
$ 25.8m
Todd Schneider
COO & Executive VP2.25yrsUS$2.49m0.14%
$ 49.4m
Michael Thompson
Executive VP & Chief Administrative Officer2.25yrsUS$1.57m0.071%
$ 25.0m
Thomas Frooman
Senior VP18.83yrsUS$1.63m0.13%
$ 47.0m
Richard Farmer
Founder & Chairman Emeritusno dataUS$349.78kno data
Matt Hough
VP & Chief Information Officer1.33yrsno datano data
Michelle Goret
Vice President of Corporate Communicationsno datano datano data
Robert Mitchell
Chief Marketing Officer4.33yrsno datano data
Paul Jantsch
Senior Vice President of Corporate Development & Business Strategy4.33yrsno datano data
William Cronin
Senior VP & Assistant to CEO12.92yrsno datano data
John Milligan
Chief Operating Officer of Rental Division East and Executive Vice President of Rental Division Eastno datano datano data

4.3yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CTAS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Farmer
Chairman & CEO17.25yrsUS$6.70m14.59%
$ 5.2b
Richard Farmer
Founder & Chairman Emeritusno dataUS$349.78kno data
James Johnson
Independent Director11.58yrsUS$235.60k0.0094%
$ 3.3m
Karen Carnahan
Independent Director1.25yrsUS$233.80k0.0051%
$ 1.8m
Joseph Scaminace
Independent Lead Directorno dataUS$256.70k0.011%
$ 3.9m
Ronald Tysoe
Independent Director12.75yrsUS$246.85k0.0057%
$ 2.0m
John Barrett
Independent Director8.75yrsUS$236.50k0.011%
$ 3.8m
Gerald Adolph
Independent Director14.25yrsUS$238.97k0.018%
$ 6.3m
Melanie Barstad
Independent Director9yrsUS$233.95k0.0054%
$ 1.9m
Robert Coletti
Director4.25yrsUS$223.52k0.42%
$ 148.2m

8.9yrs

Average Tenure

67yo

Average Age

Experienced Board: CTAS's board of directors are considered experienced (8.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CTAS insiders have only sold shares 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 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$35.416b
  • Shares outstanding: 104.63m
  • Website: https://www.cintas.com

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
0HYJLSE (London Stock Exchange)YesCommon StockGBUSDAug 1983
CTASWBAG (Wiener Boerse AG)YesCommon StockATEURAug 1983
CTAS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1983
C1TA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 5 REPR 1 COMBRBRLJan 2020

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 Analysis2020/10/23 00:19
End of Day Share Price2020/10/22 00:00
Earnings2020/08/31
Annual Earnings2020/05/31


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.