Now trading at a price of $193.66, Cintas has moved 3.0% so far today.
Cintas returned losses of -11.1% last year, with its stock price reaching a high of $229.24 and a low of $180.78. Over the same period, the stock underperformed the S&P 500 index by -24.9%. AThe company's 50-day average price was $204.94. 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 Industrials company has 48,300 full time employees. Cintas has offered a 0.9% dividend yield over the last 12 months.
Growing Revenues and Healthy Leverage Levels:
| 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) | 429 | 432 | 424 | 413 | 413 | 411 |
| Earnings Per Share | $2.06 | $2.03 | $2.62 | $2.99 | $3.26 | $3.83 |
| EPS Growth | n/a | -1.46% | 29.06% | 14.12% | 9.03% | 17.48% |
| Avg. Price | $173.36 | $224.27 | $278.31 | $372.09 | $384.14 | $602.66 |
| P/E Ratio | 20.06 | 26.51 | 25.79 | 30.47 | 28.99 | 38.63 |
| 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 | 26.66 |
| Total Debt (M) | $2,539 | $2,291 | $1,343 | $2,485 | $2,474 | $2,027 |
| Net Debt / EBITDA | 1.7 | 1.14 | 0.76 | 1.3 | 1.16 | 0.81 |
| Current Ratio | 1.92 | 2.06 | 1.22 | 1.86 | 2.24 | 1.58 |
Cintas benefits from growing revenues and increasing reinvestment in the business, generally positive cash flows, and a strong EPS growth trend. The company's financial statements show a decent current ratio of 1.58 and healthy leverage levels.
The Market May Be Overvaluing Cintas's Earnings and Assets:
Cintas has a trailing twelve month P/E ratio of 45.5, compared to an average of 24.03 for the Industrials sector. Based on its EPS guidance of $4.68, the company has a forward P/E ratio of 43.8. The 12.4% compound average growth rate of Cintas's historical and projected earnings per share yields a PEG ratio of 3.66. This suggests that these shares are overvalued. Furthermore, Cintas is likely overvalued compared to the book value of its equity, since its P/B ratio of 16.41 is higher than the sector average of 2.89. The company's shares are currently trading 545.3% below their Graham number. Overall, Cintas's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
Cintas Has No Average Rating:
Cintas has an average amount of shares sold short because 2.2% of the company's shares are sold short. Institutions own 67.7% of the company's shares, and the insider ownership rate stands at 14.93%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $7,433,662,859.
