| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.009128 | 0.009375 | 0.008438 | 0.007321 | Price To Sales Ratio | 5.23 | 5.44 | 4.9 | 5.14 |
Is Cintas (USA Stocks:CTAS) undervalued?
 | By Ellen Johnson | Macroaxis Story |
Cintas has a performance score of 11 out of 100. The company's Beta, a measure of market volatility, is 0.66, suggesting potential diversification benefits within a portfolio. As market returns increase, Cintas' returns are expected to rise less than the market. Conversely, in a bear market, the loss from holding Cintas is expected to be smaller. Currently, Cintas has a risk of 0.84%. It's important to verify Cintas' semi-variance and the relationship between the Treynor ratio and daily balance of power to determine if Cintas will follow its price patterns.
Main Points
With a market capitalization of $72.2B and a robust profit margin of 15.98%, Cintas (CTAS) is a strong player in the Specialty Business Services industry. Despite a net interest income loss of $109.5M, the company's diluted EPS stands at 14.51, indicating a potential for significant returns for investors in the Commercial Services & Supplies sector.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Rifka Kats
Cintas Corporation (CTAS), a leading player in the Industrials sector, specifically in the Specialty Business Services industry, is a potential hidden gem in the US stock market. With a market capitalization of $72.2B and an enterprise value of $74.7B, the company's financial health is robust. Its strong earnings growth, reflected in a quarterly earnings growth of 22.3% and a net income from continuing operations of $1.3B, underscores its profitability. Despite the company's strong financial performance, there are two strong sell recommendations from analysts, indicating potential risks. However, with a day typical price of $713.76 and a possible upside price of $700.21, Cintas offers an intriguing value proposition for discerning investors. Currently, Cintas' Net Income Per Share remains relatively stable compared to the previous year. The Days Of Inventory On Hand is projected to increase to 112.82 in 2024, while the Enterprise Value is expected to slightly decrease to just above $3.6 billion in the same year. Given that many baby boomers remain indifferent towards the commercial services & supplies sector, it's worthwhile to examine Cintas. We will assess whether Cintas can reduce net losses this year. This article will also discuss key factors influencing Cintas' products and how they may affect the company's outlook for active traders this year.The performance of Cintas in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Cintas' stock prices. When investing in Cintas, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Cintas Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Cintas carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of Cintas earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Cintas dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Cintas one year expected dividend income is about USD3.22 per share.
At this time, Cintas' Dividends Paid is comparatively stable compared to the past year. Dividend Yield is likely to gain to 0.01 in 2025, whereas Dividend Payout Ratio is likely to drop 0.18 in 2025. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 610.5 M | 641.1 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.30 | 0.18 | |
| Dividend Paid And Capex Coverage Ratio | 1.99 | 1.50 |
Investing in dividend-paying stocks, such as Cintas is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Cintas must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Cintas. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is Cintas's Liquidity
Cintas financial leverage refers to using borrowed capital as a funding source to finance Cintas ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cintas financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cintas' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cintas' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cintas's total debt and its cash.
What do experts say about Cintas?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusBreaking down Cintas Indicators
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cintas has an asset utilization ratio of 103.15 percent. This implies that the Company is making $1.03 for each dollar of assets. An increasing asset utilization means that Cintas is more efficient with each dollar of assets it utilizes for everyday operations.
"Buy low, sell high" is a well-known investment adage that may apply to Cintas (CTAS), a hidden gem in the US stock market. With a robust operating income of $1.8B and a net income of $1.35B, Cintas demonstrates strong financial health. The company's impressive operating margin of 0.22% and a profit margin of 0.16% further underscore its profitability. Despite a debt of $2.67B, the company's retained earnings stand at a substantial $9.6B, indicating its ability to generate shareholder value. With a beta of 1.31, Cintas offers a balance of risk and return, making it a potential value pick for discerning investors..
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