Cintas Corporation
Find Ratings ReportsCINTAS CORP's gross profit margin for the second quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. CINTAS CORP has average liquidity. Currently, the Quick Ratio is 1.00 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, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 16.43% 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 FY23 | Q2 FY22 |
---|---|---|
Net Sales ($mil) | 2377.18 | 2174.86 |
EBITDA ($mil) | 568.87 | 508.44 |
EBIT ($mil) | 499.68 | 444.93 |
Net Income ($mil) | 374.61 | 324.29 |
Balance Sheet | Q2 FY23 | Q2 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 85.56 | 89.8 |
Total Assets ($mil) | 8813.87 | 8427.01 |
Total Debt ($mil) | 2867.29 | 3100.0 |
Equity ($mil) | 3994.48 | 3430.54 |
Profitability | Q2 FY23 | Q2 FY22 |
---|---|---|
Gross Profit Margin | 50.93 | 49.93 |
EBITDA Margin | 23.93 | 23.37 |
Operating Margin | 21.02 | 20.46 |
Sales Turnover | 1.04 | 0.99 |
Return on Assets | 16.24 | 15.25 |
Return on Equity | 35.84 | 37.48 |
Debt | Q2 FY23 | Q2 FY22 |
---|---|---|
Current Ratio | 2.24 | 1.86 |
Debt/Capital | 0.42 | 0.47 |
Interest Expense | 26.59 | 28.92 |
Interest Coverage | 18.79 | 15.39 |
Share Data | Q2 FY23 | Q2 FY22 |
---|---|---|
Shares outstanding (mil) | 101.35 | 101.6 |
Div / share | 1.35 | 1.15 |
EPS | 3.61 | 3.12 |
Book value / share | 39.41 | 33.76 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 339580.0 | 386988.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 41.61 for the Personal and Laundry Services subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 15.98 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 14.09. The price-to-sales ratio is well above both the S&P 500 average and 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.
Price/Earnings |
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Price/Cash Flow |
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CTAS 45.70 | Peers 41.61 | CTAS 37.46 | Peers 33.73 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. CTAS is trading at a valuation on par with 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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CTAS 39.01 | Peers 34.46 | CTAS 3.76 | Peers 4.01 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. CTAS is trading at a significant premium to its peers. |
Average. 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 valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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CTAS 15.98 | Peers 14.09 | CTAS 12.12 | Peers 7.43 | |||||||||||||||||||||
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 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. |
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Price/Sales |
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Sales Growth |
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CTAS 6.94 | Peers 5.96 | CTAS 9.75 | Peers 8.98 | |||||||||||||||||||||
Premium. 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 premium to its subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. CTAS is keeping pace with its peers on the basis of sales growth. |
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