Cintas may be undervalued with mixed growth prospects, but the 16 analysts following the company give it an rating of hold. Their target prices range from $147.5 to $245.0 per share, for an average of $207.19. At today's price of $183.51, Cintas is trading -11.43% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. Based in Cincinnati, OH, the Large-Cap Consumer Discretionary company has 46,500 full time employees. Cintas has provided a 0.7% dividend yield over the last 12 months.
Cintas has a trailing twelve month P/E ratio of 46.2, compared to an average of 22.6 for the Consumer Discretionary sector. Considering its EPS guidance of $4.68, the company has a forward P/E ratio of 39.2.
Furthermore, Cintas is overpriced compared to its book value, since its P/B ratio of 18.4 is higher than the sector average of 3.19. The company's shares are currently 53.8% below their Graham number, indicating that its shares have a margin of safety.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $6,892 | $7,085 | $7,116 | $7,854 | $8,816 | $9,597 |
| Gross Margins | 45% | 46% | 47% | 46% | 47% | 49% |
| Net Margins | 13% | 12% | 16% | 16% | 15% | 16% |
| Net Income (M) | $885 | $876 | $1,111 | $1,236 | $1,348 | $1,572 |
| Net Interest Expense (M) | $102 | $105 | $98 | $89 | $111 | $101 |
| Depreciation & Amort. (M) | $224 | $236 | $244 | $249 | $257 | $281 |
| Diluted Shares (M) | 107 | 108 | 106 | 103 | 103 | 103 |
| Earnings Per Share | $7.99 | $8.11 | $10.24 | $11.65 | $12.99 | $15.15 |
| EPS Growth | n/a | 1.5% | 26.26% | 13.77% | 11.5% | 16.63% |
| Avg. Price | $173.36 | $224.27 | $278.31 | $372.09 | $384.14 | $184.64 |
| P/E Ratio | 21.01 | 26.83 | 26.46 | 31.22 | 29.08 | 11.99 |
| Free Cash Flow (M) | $791 | $1,061 | $1,217 | $1,297 | $1,267 | $1,670 |
| CAPEX (M) | $277 | $230 | $143 | $241 | $331 | $409 |
| EV / EBITDA | 14.79 | 17.73 | 18.34 | 21.8 | 20.13 | 8.64 |
| Total Debt (M) | $2,539 | $2,291 | $1,343 | $2,485 | $2,474 | $2,026 |
| Net Debt / EBITDA | 1.7 | 1.14 | 0.76 | 1.3 | 1.16 | 0.72 |
| Current Ratio | 1.92 | 2.06 | 1.22 | 1.86 | 2.24 | 1.74 |
