Awarener easy mode Awarener analytic mode

Fundamental analysis: Cintas Corporation (CTAS)

Awarener score: 6.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Excellent) and growth (Lacking), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

  • Business has been slightly shrinking. It's been encouraging in relation to peer companies.
  • Cintas Corporation business trend stability is excellent. The higher the stability, the lower the risk. It looks better than most rivals.

Margins score: 8.0

  • CTAS profit margins -on goods and services sold- are usually good. They stand well ranked against rival companies.
  • Business profit on sales tends to be excellent. It's great when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain a slight improvement compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually very good considering total sales, and remain great when measured against rivals.
  • Total net profit tends to be very good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 4.6

  • Cintas Corporation profit -on goods and services sold- has been growing at a low pace. It's been lacking compared to competitors.
  • In recent years, earnings -on operations- have been growing at a low step, which has been slightly better than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a low pace, which compares almost average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be close to average when compared to similar stocks.
  • In past years, profits -before income taxes- grew at a low speed. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been almost null, and below average when measured against peer companies.
  • Earnings per share have grown at a very low rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 7.0

  • CTAS had hardly to pay income taxes in relation to profits made in the past years. It's been better than most peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 10.0

  • Cintas Corporation usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
  • Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 6.7

  • CTAS usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands great when measured against rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is similar to industry peers.
  • In the past twelve months it paid low dividends, considering the current stock price. It came mediocre against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • Dividend payments usually represent a minor portion of genuine funds generation and are most likely safe. Sustainability looks somewhat better than comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a slight improvement compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.3

  • Cintas Corporation intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
  • The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be a slight improvement compared to similar firms.
  • A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains well ranked against rival firms.
  • Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks below average when measured against rivals.
  • For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's in a weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on a two-months credit. It still ranks similar to peers.
  • Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
  • On average, it takes higher than three months from the purchase to charging customers. It happens to be mediocre against peers.
  • On average pays suppliers before a month since the purchase. It ranks below average when measured against industry peers.
  • The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's in a very weak position compared to similar companies.
  • Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands somewhat better than rival firms.
  • Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks great when measured against comparable enterprises.
  • Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
  • Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 4.8

  • Cintas Corporation looks very expensive in relation to profits and financial position. It happens to be below average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a very weak position compared to peers.
  • In the past twelve months, the company generated some free funds in relation to the stock price, which stands slightly better than similar companies.
  • The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still almost average when measured against industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
  • The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks below average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be almost average when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 6.6


CTAS logos

Company at a glance: Cintas Corporation (CTAS)

Sector, industry: Industrials, Specialty Business Services

Market Cap: 45.36 billions

Revenues TTM: 8.38 billions

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. It also offers first aid and safety services, and fire protection products and services. The company provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. Cintas Corporation was founded in 1968 and is headquartered in Cincinnati, Ohio.

Awarener score: 6.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Excellent) and growth (Lacking), and the company's inclination to return cash to the stockholders (Very good).