Cintas (NasdaqGS:CTAS) - Share price, News & Analysis

Q: What is the Fair Price of CTAS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CTAS ($388.19) is trading above our estimate of [[fair value]] ($374.04)

CTAS fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	2/6
Past Performance	3/6
Financial Health	4/6
Dividends	4/6

CTAS Stock Overview

Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America.

Rewards

Earnings are forecast to grow 2.87% per year

Earnings have grown 14% per year over the past 5 years

Risk Analysis

Has a high level of debt

Cintas Competitors

Copart

NasdaqGS:CPRT

US$25.3b

Ritchie Bros. Auctioneers

NYSE:RBA

US$6.9b

IAA

NYSE:IAA

US$4.3b

UniFirst

NYSE:UNF

US$3.1b

Price History & Performance

Summary of all time highs, changes and price drops for Cintas
Historical stock prices
Current Share Price	US$388.19
52 Week High	US$461.44
52 Week Low	US$343.86
Beta	1.43
1 Month Change	-4.34%
3 Month Change	3.05%
1 Year Change	0.22%
3 Year Change	47.68%
5 Year Change	160.39%
Change since IPO	7,751.03%

Recent News & Updates

Sep 27

Cintas Q1 2023 Earnings Preview

Cintas (NASDAQ:CTAS) is scheduled to announce Q1 earnings results on Wednesday, September 28th, before market open. The consensus EPS Estimate is $3.14 and the consensus Revenue Estimate is $2.08B (+9.5% Y/Y). Over the last 2 years, CTAS has beaten EPS estimates 88% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 4 upward revisions and 7 downward. Revenue estimates have seen 8 upward revisions and 0 downward.

Sep 21

Investors Should Be Encouraged By Cintas' (NASDAQ:CTAS) Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common...

Shareholder Returns

	CTAS	US Commercial Services	US Market
7D	-0.4%	-2.4%	-2.5%
1Y	0.2%	-9.7%	-23.2%

Return vs Industry: CTAS exceeded the US Commercial Services industry which returned -9.7% over the past year.

Return vs Market: CTAS exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is CTAS's price volatile compared to industry and market?
CTAS volatility
CTAS Average Weekly Movement	3.3%
Commercial Services Industry Average Movement	7.0%
Market Average Movement	6.8%
10% most volatile stocks in US Market	15.5%
10% least volatile stocks in US Market	2.8%

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	43,000	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.

Cintas Fundamentals Summary

How do Cintas's earnings and revenue compare to its market cap?
CTAS fundamental statistics
Market Cap	US$39.41b
Earnings (TTM)	US$1.25b
Revenue (TTM)	US$8.12b

31.5x

P/E Ratio

4.9x

P/S Ratio

Is CTAS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTAS income statement (TTM)
Revenue	US$8.12b
Cost of Revenue	US$4.37b
Gross Profit	US$3.76b
Other Expenses	US$2.51b
Earnings	US$1.25b

Last Reported Earnings

Aug 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	12.31
Gross Margin	46.25%
Net Profit Margin	15.39%
Debt/Equity Ratio	92.6%

How did CTAS perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

33%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CTAS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CTAS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CTAS. This is calculated by dividing CTAS's market cap by their current preferred multiple.
What is CTAS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$39.41b

CTAS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.2x
Enterprise Value/EBITDA	22.1x
PEG Ratio	11x

Price to Earnings Ratio vs Peers

How does CTAS's PE Ratio compare to its peers?

CTAS PE Ratio vs Peers

The above table shows the PE ratio for CTAS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	22.2x
CPRT Copart	23.2x	9.1%	US$25.3b
RBA Ritchie Bros. Auctioneers	23.5x	2.0%	US$6.9b
IAA IAA	14.1x	-1.8%	US$4.3b
UNF UniFirst	28.2x	21.9%	US$3.1b
CTAS Cintas	31.5x	2.9%	US$39.4b

Price-To-Earnings vs Peers: CTAS is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the peer average (22.2x).

Price to Earnings Ratio vs Industry

How does CTAS's PE Ratio compare vs other companies in the US Commercial Services Industry?

Price-To-Earnings vs Industry: CTAS is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the US Commercial Services industry average (17.2x)

Price to Earnings Ratio vs Fair Ratio

What is CTAS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CTAS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	31.5x
Fair PE Ratio	27.5x

Price-To-Earnings vs Fair Ratio: CTAS is expensive based on its Price-To-Earnings Ratio (31.5x) compared to the estimated Fair Price-To-Earnings Ratio (27.5x).

Share Price vs Fair Value

What is the Fair Price of CTAS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CTAS ($388.19) is trading above our estimate of fair value ($374.04)

Significantly Below Fair Value: CTAS is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTAS's forecast earnings growth (2.9% per year) is above the savings rate (1.9%).

Earnings vs Market: CTAS's earnings (2.9% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: CTAS's revenue (4.1% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: CTAS's revenue (4.1% 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 very high in 3 years time (41.5%).

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Past Performance

How has Cintas performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

14.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CTAS has high quality earnings.

Growing Profit Margin: CTAS's current net profit margins (15.4%) are lower than last year (15.6%).

Past Earnings Growth Analysis

Earnings Trend: CTAS's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: CTAS's earnings growth over the past year (10.2%) is below its 5-year average (14% per year).

Earnings vs Industry: CTAS earnings growth over the past year (10.2%) underperformed the Commercial Services industry 26.9%.

Return on Equity

High ROE: CTAS's Return on Equity (38.9%) is considered high.

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Financial Health

How is Cintas's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CTAS's short term assets ($2.7B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: CTAS's short term assets ($2.7B) do not cover its long term liabilities ($3.4B).

Debt to Equity History and Analysis

Debt Level: CTAS's net debt to equity ratio (90.3%) is considered high.

Reducing Debt: CTAS's debt to equity ratio has reduced from 110.7% to 92.6% over the past 5 years.

Debt Coverage: CTAS's debt is well covered by operating cash flow (52.6%).

Interest Coverage: CTAS's interest payments on its debt are well covered by EBIT (17.3x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.18%

Current Dividend Yield

Dividend Yield vs Market

Cintas Dividend Yield vs Market

How does Cintas dividend yield compare to the market?
Segment	Dividend Yield
Company (Cintas)	1.2%
Market Bottom 25% (US)	1.7%
Market Top 25% (US)	4.7%
Industry Average (Commercial Services)	1.5%
Analyst forecast in 3 Years (Cintas)	1.2%

Notable Dividend: CTAS's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: CTAS's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (4.73%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32.9%), CTAS's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (35.6%), CTAS's dividend payments are well covered by cash flows.

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Management

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

3.8yrs

Average management tenure

CEO

Todd Schneider (54 yo)

1.33yrs

Tenure

US$7,777,100

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

Todd Schneider's Compensation vs Cintas Earnings

How has Todd Schneider's remuneration changed compared to Cintas's earnings?
Date	Total Comp.	Salary	Company Earnings
Aug 31 2022	n/a	n/a	US$1b
May 31 2022	US$8m	US$1m	US$1b
Feb 28 2022	n/a	n/a	US$1b
Nov 30 2021	n/a	n/a	US$1b
Aug 31 2021	n/a	n/a	US$1b
May 31 2021	US$4m	US$639k	US$1b
Feb 28 2021	n/a	n/a	US$981m
Nov 30 2020	n/a	n/a	US$957m
Aug 31 2020	n/a	n/a	US$917m
May 31 2020	US$2m	US$710k	US$868m
Feb 29 2020	n/a	n/a	US$950m
Nov 30 2019	n/a	n/a	US$916m
Aug 31 2019	n/a	n/a	US$912m
May 31 2019	US$4m	US$689k	US$873m

Compensation vs Market: Todd's total compensation ($USD7.78M) is below average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Todd's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: CTAS's management team is considered experienced (3.8 years average tenure).

Board Members

Experienced Board: CTAS's board of directors are seasoned and experienced ( 11 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

NasdaqGS:CTAS Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Role	Shares	Max Price
01 Apr 22	SellUS$5,290,531	Michael Thompson	Individual		12,500	US$423.25

Ownership Breakdown

What is the ownership structure of CTAS?
Owner Type	Number of Shares	Ownership Percentage
State or Government	37,045	0.04%
Individual Insiders	15,259,392	15.0%
General Public	21,958,895	21.6%
Institutions	64,277,310	63.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 54.07% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
14.2%	Scott Farmer	14,421,232	$5.6b	-0.03%	no data
9.82%	The Vanguard Group, Inc.	9,970,138	$3.9b	-0.14%	0.09%
7.1%	BlackRock, Inc.	7,204,035	$2.8b	2.07%	0.07%
3.75%	State Street Global Advisors, Inc.	3,811,581	$1.5b	-2.48%	0.08%
1.73%	Geode Capital Management, LLC	1,755,924	$681.6m	0.94%	0.09%
1.7%	FMR LLC	1,729,004	$671.2m	-8.16%	0.06%
1.47%	T. Rowe Price Group, Inc.	1,488,278	$577.7m	-10.34%	0.07%
1.44%	Brown Advisory Incorporated	1,465,797	$569.0m	-8.89%	1.02%
1.36%	Franklin Resources, Inc.	1,385,185	$537.7m	-0.09%	0.24%
1.07%	Columbia Management Investment Advisers, LLC	1,085,273	$421.3m	44.8%	0.13%
1.05%	Impax Asset Management Group plc	1,062,605	$412.5m	-3.39%	1.39%
1.05%	Fort Washington Investment Advisors, Inc.	1,062,425	$412.4m	0%	3.29%
0.94%	Northern Trust Global Investments	951,780	$369.5m	0.86%	0.08%
0.92%	American Century Investment Management Inc	934,134	$362.6m	-13.94%	0.27%
0.86%	City National Rochdale, LLC	876,021	$340.1m	1%	1.36%
0.82%	BNY Mellon Asset Management	832,740	$323.3m	4.23%	0.07%
0.72%	Norges Bank Investment Management	729,703	$283.3m	0%	0.04%
0.66%	Legal & General Investment Management Limited	670,725	$260.4m	-1.42%	0.08%
0.52%	ProShare Advisors LLC	532,673	$206.8m	-9.12%	0.71%
0.52%	Pictet Asset Management Limited	528,491	$205.2m	-6.69%	0.19%
0.5%	Luther King Capital Management Corporation	505,256	$196.1m	-0.63%	1.16%
0.5%	Dimensional Fund Advisors LP	503,671	$195.5m	-9.74%	0.05%
0.48%	UBS Asset Management	489,310	$189.9m	-5.17%	0.04%
0.46%	Charles Schwab Investment Management, Inc.	466,357	$181.0m	-0.67%	0.05%
0.43%	Goldman Sachs Asset Management, L.P.	438,717	$170.3m	62.98%	0.07%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
CTAS	NasdaqGS (Nasdaq Global Select)	Yes	Common Stock	US	USD	Aug 1983
CIT	DB (Deutsche Boerse AG)	Yes	Common Stock	DE	EUR	Aug 1983
0HYJ	LSE (London Stock Exchange)	Yes	Common Stock	GB	USD	Aug 1983
CTAS	WBAG (Wiener Boerse AG)	Yes	Common Stock	AT	EUR	Aug 1983
CTAS *	BMV (Bolsa Mexicana de Valores)	Yes	Common Stock	MX	MXN	Aug 1983
C1TA34	BOVESPA (Bolsa de Valores de Sao Paulo)		BDR EACH 5 REPR 1 COM	BR	BRL	Jan 2020

Data	Last Updated (UTC time)
Company Analysis	2022/10/02 00:00
End of Day Share Price	2022/09/30 00:00
Earnings	2022/08/31
Annual Earnings	2022/05/31