Cintas CorporationFind Ratings Reports
CINTAS CORP's gross profit margin for the second quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. CINTAS CORP has average liquidity. Currently, the Quick Ratio is 1.11 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 15.87% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q2 FY20||Q2 FY19|
|Net Sales ($mil)||1757.05||1843.75|
|Net Income ($mil)||284.86||246.12|
|Balance Sheet||Q2 FY20||Q2 FY19|
|Cash & Equiv. ($mil)||703.18||226.54|
|Total Assets ($mil)||8454.75||7887.34|
|Total Debt ($mil)||2700.98||2913.24|
|Profitability||Q2 FY20||Q2 FY19|
|Gross Profit Margin||50.11||49.41|
|Return on Assets||11.4||11.74|
|Return on Equity||26.79||29.77|
|Debt||Q2 FY20||Q2 FY19|
|Share Data||Q2 FY20||Q2 FY19|
|Shares outstanding (mil)||104.99||103.7|
|Div / share||3.51||2.55|
|Book value / share||34.27||29.94|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||437874.0||464301.0|
BUY. The current P/E ratio indicates a premium compared to an average of 33.11 for the Personal and Laundry Services subsector and a value on par with the S&P 500 average of 38.64. For additional comparison, its price-to-book ratio of 9.55 indicates a significant premium versus the S&P 500 average of 4.02 and a significant premium versus the subsector average of 7.16. The current price-to-sales ratio is well above the S&P 500 average and above the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, CINTAS CORP proves to trade at a premium to investment alternatives.
|CTAS 36.72||Peers 50.98||CTAS 26.31||Peers 21.57|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
CTAS is trading at a significant discount to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CTAS is trading at a premium to its peers.
|CTAS 33.45||Peers 34.31||CTAS 1.92||Peers 8.46|
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations.
CTAS is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
CTAS trades at a significant discount to its peers.
|CTAS 9.55||Peers 7.16||CTAS 5.07||Peers -26.02|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CTAS is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
CTAS is expected to have an earnings growth rate that significantly exceeds its peers.
|CTAS 4.95||Peers 4.91||CTAS -2.77||Peers -1.04|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CTAS is trading at a valuation on par with its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
CTAS significantly trails its peers on the basis of sales growth.