Cintas Corp. (CTAS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Expedia Group, Inc.

Airbnb, Inc.

Life Time Group Holdings, Inc.

Cintas Corp.

H&R Block, Inc.

Rollins, Inc.

Service Corp. International

Marriott Vacations Worldwide Corp.

Booking Holdings, Inc.

Valvoline, Inc.

Planet Fitness, Inc.

Why is Cintas Corp. ?

High Management Efficiency with a high ROCE of 29.00%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.02 times

Healthy long term growth as Operating profit has grown by an annual rate 14.54%

With a growth in Net Sales of 8.9%, the company declared Very Positive results in Feb 26

The company has declared positive results for the last 15 consecutive quarters
INVENTORY TURNOVER RATIO(HY) Highest at 13 times
DIVIDEND PER SHARE(HY) Highest at USD 7.5
NET SALES(Q) Highest at USD 2,841.44 MM

With ROCE of 34.06%, it has a very expensive valuation with a 11.43 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -17.97%, its profits have risen by 10.9% ; the PEG ratio of the company is 3.8

High Institutional Holdings at 66.97%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cintas Corp. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cintas Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cintas Corp.

-21.15%

0.30

20.99%

S&P 500

22.93%

1.73

13.14%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.26%

EBIT Growth (5y)

14.54%

EBIT to Interest (avg)

17.80

Debt to EBITDA (avg)

1.07

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

1.42

Tax Ratio

19.96%

Dividend Payout Ratio

35.44%

Pledged Shares

Institutional Holding

66.97%

ROCE (avg)

29.00%

ROE (avg)

35.34%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

18.06

EV to EBIT

33.57

EV to EBITDA

27.92

EV to Capital Employed

11.43

EV to Sales

7.71

PEG Ratio

3.77

Dividend Yield

ROCE (Latest)

34.06%

ROE (Latest)

42.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 13 times

DIVIDEND PER SHARE(HY)

Highest at USD 7.5

NET SALES(Q)

Highest at USD 2,841.44 MM

RAW MATERIAL COST(Y)

Fallen by -1.24% (YoY

OPERATING PROFIT(Q)

Highest at USD 788.57 MM

PRE-TAX PROFIT(Q)

Highest at USD 632.5 MM

NET PROFIT(Q)

Highest at USD 500.9 MM

EPS(Q)

Highest at USD 1.24

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.5 times

Here's what is working for Cintas Corp.

Net Sales

Highest at USD 2,841.44 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Inventory Turnover Ratio

Highest at 13 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 7.5 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 788.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 632.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 500.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -1.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 128.67 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Cintas Corp.

Debtors Turnover Ratio

Lowest at 7.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio