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

CTAS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	2/6
Past Performance	5/6
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

Trading at 20.1% below our estimate of its fair value

Earnings are forecast to grow 7.65% per year

Earnings have grown 16.1% per year over the past 5 years

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months

Cintas Competitors

UniFirst

NYSE:UNF

US$3.0b

NIKE

NYSE:NKE

US$168.8b

Honeywell International

NasdaqGS:HON

US$129.3b

Johnson Controls International

NYSE:JCI

US$35.4b

Price History & Performance

Summary of all time highs, changes and price drops for Cintas
Historical stock prices
Current Share Price	US$370.94
52 Week High	US$461.44
52 Week Low	US$345.34
Beta	1.47
1 Month Change	-9.08%
3 Month Change	1.93%
1 Year Change	4.34%
3 Year Change	68.08%
5 Year Change	197.35%
Change since IPO	7,402.16%

Recent News & Updates

May 19

Cintas Corporation (NASDAQ:CTAS) Shares Could Be 23% Below Their Intrinsic Value Estimate

Does the May share price for Cintas Corporation ( NASDAQ:CTAS ) reflect what it's really worth? Today, we will estimate...

May 03

Cintas' Fiery Valuation Overshadows Growth Expectations

CTAS enjoys multiple EPS tailwinds manifested in the hospitality sector rebound, introduction of new services, and M&A. Dividend growth trends are likely to persist. Price multiples remain high, narrowing potential returns for long-term investors.

Shareholder Returns

	CTAS	US Commercial Services	US Market
7D	-2.7%	-1.5%	-4.0%
1Y	4.3%	-4.7%	-13.2%

Return vs Industry: CTAS exceeded the US Commercial Services industry which returned -5.3% over the past year.

Return vs Market: CTAS exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is CTAS's price volatile compared to industry and market?
CTAS volatility
CTAS Average Weekly Movement	4.0%
Commercial Services Industry Average Movement	7.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: CTAS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CTAS's weekly volatility (4%) 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.

Cintas Fundamentals Summary

How do Cintas's earnings and revenue compare to its market cap?
CTAS fundamental statistics
Market Cap	US$37.96b
Earnings (TTM)	US$1.20b
Revenue (TTM)	US$7.62b

31.6x

P/E Ratio

5.0x

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$7.62b
Cost of Revenue	US$4.07b
Gross Profit	US$3.55b
Other Expenses	US$2.34b
Earnings	US$1.20b

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	11.75
Gross Margin	46.55%
Net Profit Margin	15.79%
Debt/Equity Ratio	88.2%

How did CTAS perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Cintas undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

20.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CTAS ($370.94) is trading below our estimate of fair value ($463.99)

Significantly Below Fair Value: CTAS is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: CTAS is poor value based on its Price-To-Earnings Ratio (31.6x) compared to the US Commercial Services industry average (21.9x).

PE vs Market: CTAS is poor value based on its Price-To-Earnings Ratio (31.6x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: CTAS is poor value based on its PEG Ratio (4.1x)

Price to Book Ratio

PB vs Industry: CTAS is overvalued based on its Price-To-Book Ratio (11.5x) compared to the US Commercial Services industry average (1.8x).

Future Growth

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

7.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTAS's forecast earnings growth (7.7% per year) is above the savings rate (1.9%).

Earnings vs Market: CTAS's earnings (7.7% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: CTAS's revenue (7.1% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: CTAS's revenue (7.1% 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 high in 3 years time (37.2%)

Past Performance

How has Cintas performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

16.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CTAS has high quality earnings.

Growing Profit Margin: CTAS's current net profit margins (15.8%) are higher than last year (14.2%).

Past Earnings Growth Analysis

Earnings Trend: CTAS's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: CTAS's earnings growth over the past year (22.6%) exceeds its 5-year average (16.1% per year).

Earnings vs Industry: CTAS earnings growth over the past year (22.6%) underperformed the Commercial Services industry 30.2%.

Return on Equity

High ROE: CTAS's Return on Equity (36.7%) is considered high.

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 ($2.6B).

Long Term Liabilities: CTAS's short term assets ($2.7B) exceed its long term liabilities ($2.3B).

Debt to Equity History and Analysis

Debt Level: CTAS's net debt to equity ratio (85.7%) is considered high.

Reducing Debt: CTAS's debt to equity ratio has increased from 53.5% to 88.2% over the past 5 years.

Debt Coverage: CTAS's debt is well covered by operating cash flow (49.7%).

Interest Coverage: CTAS's interest payments on its debt are well covered by EBIT (17.1x coverage).

Balance Sheet

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
Future Dividend Coverage

1.02%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CTAS's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: CTAS's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (4.05%).

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 (31.1%), CTAS's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.5%), CTAS's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure

CEO

Todd Schneider (53 yo)

0.92

Tenure

US$3,741,735

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 ($USD3.74M) is below average for companies of similar size in the US market ($USD13.26M).

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 (3.4 years average tenure).

Board Members

Experienced Board: CTAS's board of directors are seasoned and experienced ( 10.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/02/28
Annual Earnings	2021/05/31