Cintas (CTAS) Reaches New Lifetime High Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cintas as such a stock due to the following factors:
- CTAS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.0 million.
- CTAS has traded 12,681 shares today.
- CTAS is trading at a new lifetime high.
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More details on CTAS:
Cintas Corporation provides corporate identity uniforms and related business services primarily in North America, Latin America, Europe, and Asia. The stock currently has a dividend yield of 1%. CTAS has a PE ratio of 24.2. Currently there are 4 analysts that rate Cintas a buy, 1 analyst rates it a sell, and 8 rate it a hold.
The average volume for Cintas has been 676,600 shares per day over the past 30 days. Cintas has a market cap of $10.0 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.77 and a short float of 6.4% with 9.72 days to cover. Shares are up 8.7% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Cintas as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.68% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CTAS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CINTAS CORP has improved earnings per share by 24.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CINTAS CORP increased its bottom line by earning $3.04 versus $2.52 in the prior year. This year, the market expects an improvement in earnings ($3.26 versus $3.04).
- The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, CTAS has a quick ratio of 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has slightly increased to $144.37 million or 3.32% when compared to the same quarter last year. In addition, CINTAS CORP has also modestly surpassed the industry average cash flow growth rate of -1.47%.
- 46.28% is the gross profit margin for CINTAS CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.71% trails the industry average.
- You can view the full Cintas Ratings Report.
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