New Lifetime High Reached: Cintas Corporation (CTAS)

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 or Stephanie Link.

Trade-Ideas LLC identified Cintas Corporation ( CTAS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cintas Corporation 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 $38.0 million.
  • CTAS has traded 69,102 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 for approximately 1 million businesses primarily in North America, Latin America, Europe, and Asia. The stock currently has a dividend yield of 1.3%. CTAS has a PE ratio of 22.7. Currently there are 3 analysts that rate Cintas Corporation a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Cintas Corporation has been 588,700 shares per day over the past 30 days. Cintas has a market cap of $7.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.78 and a short float of 8.3% with 11.66 days to cover. Shares are down 1.1% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cintas Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • CTAS's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 7.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.36, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Commercial Services & Supplies industry and the overall market, CINTAS CORP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • 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 35.66% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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