Cintas (CTAS) Stock Analysis
Here is a fundamental analysis of Cintas (CTAS), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: CTAS | Industry group median |
|---|---|---|
| 1-Year Return | -20.40% | -15.17% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: CTAS | Industry group median |
|---|---|---|
| 1-Year Volatility | 20.42% | 38.00% |
| Beta | 0.93 | 0.84 |
Company Profile
| Profile Item | CTAS |
|---|---|
| Name | Cintas Corporation |
| Country/Region | United States |
| GICS Sector | Industrials |
| GICS Industry Group | Commercial & Professional Services |
| GICS Industry | Commercial Services & Supplies |
| GICS Sub-Industry | Diversified Support Services |
| Market Capitalization | 70.54 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | August 19, 1983 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Cintas (CTAS) trades at P/E ratio of 37.19, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
CTAS
Commercial & Professional Services industry group
37.19
Group distribution
- Max
- 67.87
- Q3
- 37.72
- CTAS
- 37.19
- Median
- 21.61
- Q1
- 14.71
- Min
- 4.85
Largest peers
- WCN
- 37.98
- CTAS
- 37.19
- WM
- 31.76
- RSG
- 30.12
- RELX
- 22.64
- PAYX
- 22.21
- ADP
- 21.10
Price-to-Sales Ratio (TTM)
Cintas (CTAS) trades at 6.40 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
CTAS
Commercial & Professional Services industry group
6.40
Group distribution
- CTAS
- 6.40
- Max
- 6.40
- Q3
- 3.14
- Median
- 1.30
- Q1
- 0.66
- Min
- 0.09
Largest peers
- PAYX
- 9.09
- CTAS
- 6.40
- RELX
- 6.19
- ADP
- 4.19
- WCN
- 4.13
- RSG
- 3.87
- WM
- 3.47
Price-to-Book Ratio (MRQ)
Cintas (CTAS) trades at 14.73 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
CTAS
Commercial & Professional Services industry group
14.73
Group distribution
- CTAS
- 14.73
- Max
- 8.98
- Q3
- 5.88
- Median
- 2.95
- Q1
- 1.89
- Min
- -2.68
Largest peers
- RELX
- 76.95
- CTAS
- 14.73
- ADP
- 14.27
- PAYX
- 8.98
- WM
- 8.81
- RSG
- 5.40
- WCN
- 4.84
Valuation at a Glance
| Metric | Current stock: CTAS | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 37.19 | 21.61 |
| Price-to-Sales Ratio (TTM) | 6.40 | 1.30 |
| Price-to-Book Ratio (MRQ) | 14.73 | 2.95 |
| Free Cash Flow Yield | 2.14% | 5.32% |
Profitability
Return on Equity (TTM)
Cintas (CTAS) posts ROE of 41.30%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
CTAS
Commercial & Professional Services industry group
41.30%
Group distribution
- Max
- 53.04%
- CTAS
- 41.30%
- Q3
- 25.65%
- Median
- 13.99%
- Q1
- 2.65%
- Min
- -26.88%
Largest peers
- ADP
- 71.21%
- RELX
- 70.51%
- CTAS
- 41.30%
- WM
- 29.94%
- RSG
- 18.35%
- WCN
- 13.12%
- PAYX
- --
Net Profit Margin (TTM)
Cintas (CTAS) keeps 17.57% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
CTAS
Commercial & Professional Services industry group
17.57%
Group distribution
- Max
- 26.63%
- CTAS
- 17.57%
- Q3
- 11.56%
- Median
- 6.26%
- Q1
- 1.18%
- Min
- -13.34%
Largest peers
- PAYX
- 26.63%
- RELX
- 21.53%
- ADP
- 20.12%
- CTAS
- 17.57%
- RSG
- 12.99%
- WM
- 10.99%
- WCN
- 10.97%
Operating Profit Margin (TTM)
Cintas (CTAS) turns 23.22% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
CTAS
Commercial & Professional Services industry group
23.22%
Group distribution
- Max
- 37.53%
- CTAS
- 23.22%
- Q3
- 17.67%
- Median
- 9.37%
- Q1
- 3.13%
- Min
- -4.52%
Largest peers
- PAYX
- 44.38%
- RELX
- 31.41%
- ADP
- 30.18%
- CTAS
- 23.22%
- RSG
- 20.20%
- WCN
- 18.75%
- WM
- 17.52%
Profitability at a Glance
| Metric | Current stock: CTAS | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 41.30% | 13.99% |
| Return on Assets (TTM) | 15.94% | 5.24% |
| Net Profit Margin (TTM) | 17.57% | 6.26% |
| Operating Profit Margin (TTM) | 23.22% | 9.37% |
| Gross Profit Margin (TTM) | 50.36% | 36.48% |
Financial Strength
Current Ratio (MRQ)
Cintas (CTAS) has current ratio of 1.98, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
CTAS
Commercial & Professional Services industry group
1.98
Group distribution
- Max
- 3.17
- Q3
- 2.01
- CTAS
- 1.98
- Median
- 1.51
- Q1
- 1.13
- Min
- 0.45
Largest peers
- CTAS
- 1.98
- PAYX
- 1.15
- ADP
- 1.04
- WM
- 0.93
- WCN
- 0.69
- RSG
- 0.67
- RELX
- 0.49
Debt-to-Equity Ratio (MRQ)
Cintas (CTAS) has debt-to-equity ratio of 0.61, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
CTAS
Commercial & Professional Services industry group
0.61
Group distribution
- Max
- 2.61
- Q3
- 1.39
- Median
- 0.94
- CTAS
- 0.61
- Q1
- 0.45
- Min
- 0.01
Largest peers
- RELX
- 3.04
- WM
- 2.28
- PAYX
- 1.25
- RSG
- 1.18
- WCN
- 1.17
- ADP
- 0.69
- CTAS
- 0.61
Financial Strength at a Glance
| Metric | Current stock: CTAS | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.98 | 1.51 |
| Debt-to-Equity Ratio (MRQ) | 0.61 | 0.94 |
| Net Debt / EBITDA | 0.94 | 2.67 |
Dividends
Dividend Yield (TTM)
Cintas (CTAS) has dividend yield of 1.02%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
CTAS
Commercial & Professional Services industry group
1.02%
Group distribution
- Max
- 5.49%
- Q3
- 2.30%
- CTAS
- 1.02%
- Median
- 0.97%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PAYX
- 4.73%
- ADP
- 3.01%
- RELX
- 2.73%
- WM
- 1.61%
- RSG
- 1.19%
- CTAS
- 1.02%
- WCN
- 0.90%
Dividend Payout Ratio (TTM)
Cintas (CTAS) has payout ratio of 36.71%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
CTAS
Commercial & Professional Services industry group
36.71%
Group distribution
- Max
- 79.70%
- CTAS
- 36.71%
- Q3
- 36.60%
- Median
- 16.11%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PAYX
- 95.36%
- ADP
- 60.45%
- RELX
- 57.42%
- WM
- 49.49%
- CTAS
- 36.71%
- RSG
- 35.22%
- WCN
- 32.44%
Dividends at a Glance
| Metric | Current stock: CTAS | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 1.02% | 0.97% |
| Dividend Payout Ratio (TTM) | 36.71% | 16.11% |