Cintas Price To Book vs. Current Valuation
| CIT Stock | EUR 178.50 1.55 0.88% |
For Cintas profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cintas to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cintas utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cintas's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cintas over time as well as its relative position and ranking within its peers.
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Cintas Current Valuation vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Cintas's current stock value. Our valuation model uses many indicators to compare Cintas value to that of its competitors to determine the firm's financial worth. Cintas is rated second in price to book category among its peers. It also is rated second in current valuation category among its peers reporting about 3,280,688,861 of Current Valuation per Price To Book. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cintas' earnings, one of the primary drivers of an investment's value.Cintas Current Valuation vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
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| = | 14.38 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
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| = | 47.18 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Cintas Current Valuation vs Competition
Cintas is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Specialty Business Services industry is currently estimated at about 117.33 Billion. Cintas totals roughly 47.18 Billion in current valuation claiming about 40% of equities listed under Specialty Business Services industry.
Cintas Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cintas, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cintas will eventually generate negative long term returns. The profitability progress is the general direction of Cintas' change in net profit over the period of time. It can combine multiple indicators of Cintas, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. Cintas Corporation was founded in 1968 and is headquartered in Cincinnati, Ohio. CINTAS CORP operates under Specialty Business Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 40000 people.
Cintas Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Cintas. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cintas position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cintas' important profitability drivers and their relationship over time.
Use Cintas in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cintas position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cintas will appreciate offsetting losses from the drop in the long position's value.Cintas Pair Trading
Cintas Pair Trading Analysis
The ability to find closely correlated positions to Cintas could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cintas when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cintas - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cintas to buy it.
The correlation of Cintas is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cintas moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cintas moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cintas can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Cintas position
In addition to having Cintas in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Medical Equipment Thematic Idea Now
Medical Equipment
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Medical Equipment theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Medical Equipment Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Cintas Stock
When determining whether Cintas is a strong investment it is important to analyze Cintas' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cintas' future performance. For an informed investment choice regarding Cintas Stock, refer to the following important reports:Check out Trending Equities. For more detail on how to invest in Cintas Stock please use our How to Invest in Cintas guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
To fully project Cintas' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cintas at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cintas' income statement, its balance sheet, and the statement of cash flows.