Cintas Corp

CTAS

Men's & Boys' Furnishgs, Work Clothg, & Allied Garments

Mkt Cap

$68.41B

PE

45.50

Debt

$2.475B

Cash

$128.5M

EV

$70.76B

FCF

$1.526B

Market Cap

$68.41B

P/E Ratio

45.50

Debt

$2.475B

Cash

$128.5M

EV

$70.76B

FCF

$1.526B

Charts data: {"Earnings":[{"time":"2015-05-30","value":430618000},{"time":"2016-05-30","value":693520000},{"time":"2017-05-30","value":480708000},{"time":"2018-05-30","value":842586000},{"time":"2019-05-30","value":884981000},{"time":"2020-05-30","value":876037000},{"time":"2021-05-30","value":1110968000},{"time":"2022-05-30","value":1235757000},{"time":"2023-05-30","value":1348010000}],"Sales":[{"time":"2015-05-30","value":4476886000},{"time":"2016-05-30","value":4905458000},{"time":"2017-05-30","value":5323381000},{"time":"2018-05-30","value":6476632000},{"time":"2019-05-30","value":6892303000},{"time":"2020-05-30","value":7085120000},{"time":"2021-05-30","value":7116340000},{"time":"2022-05-30","value":7854459000},{"time":"2023-05-30","value":8815769000}],"Net Margins":[{"time":"2015-05-30","value":0.0961869478025574},{"time":"2016-05-30","value":0.14137721696934313},{"time":"2017-05-30","value":0.09030125779086637},{"time":"2018-05-30","value":0.13009632166842272},{"time":"2019-05-30","value":0.128401348576811},{"time":"2020-05-30","value":0.12364462422654804},{"time":"2021-05-30","value":0.15611508162903964},{"time":"2022-05-30","value":0.1573319053546527},{"time":"2023-05-30","value":0.15290895212885003}],"Assets":[{"time":"2015-05-30","value":4192460000},{"time":"2016-05-30","value":4104393000},{"time":"2017-05-30","value":6844057000},{"time":"2018-05-30","value":6958214000},{"time":"2019-05-30","value":7436662000},{"time":"2020-05-30","value":7669885000},{"time":"2021-05-30","value":8236823000},{"time":"2022-05-30","value":8147256000},{"time":"2023-05-30","value":8546356000}],"Stockholders Equity":[{"time":"2015-05-30","value":1932455000},{"time":"2016-05-30","value":1842659000},{"time":"2017-05-30","value":2302793000},{"time":"2018-05-30","value":3016526000},{"time":"2019-05-30","value":3002721000},{"time":"2020-05-30","value":3235202000},{"time":"2021-05-30","value":3687847000},{"time":"2022-05-30","value":3308196000},{"time":"2023-05-30","value":3863986000}],"ROE":[{"time":"2015-05-30","value":0.22283468437816145},{"time":"2016-05-30","value":0.3763691491480518},{"time":"2017-05-30","value":0.20874998317260823},{"time":"2018-05-30","value":0.27932330104232483},{"time":"2019-05-30","value":0.294726349867337},{"time":"2020-05-30","value":0.27078278265159333},{"time":"2021-05-30","value":0.30125110938713023},{"time":"2022-05-30","value":0.3735440705447924},{"time":"2023-05-30","value":0.3488651356397254}],"ROA":[{"time":"2015-05-30","value":0.17255668509657815},{"time":"2016-05-30","value":0.190684469055473},{"time":"2017-05-30","value":0.11308029725643723},{"time":"2018-05-30","value":0.13669829643066453},{"time":"2019-05-30","value":0.16191874795439137},{"time":"2020-05-30","value":0.15172117965262844},{"time":"2021-05-30","value":0.16826378325720973},{"time":"2022-05-30","value":0.19483492356199436},{"time":"2023-05-30","value":0.21092779191505714}]}

Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms. It also offers first aid and safety services, and fire protection products and services. The company provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. Cintas Corporation was founded in 1968 and is headquartered in Cincinnati, Ohio.

Sector

10-Q
8/31/23
10-K
5/31/23
10-Q
2/28/23
10-Q
11/30/22
10-Q
8/31/22
10-K
5/31/22
10-Q
2/28/22
10-Q
11/30/21
10-Q
8/31/21
10-K
5/31/21
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2/28/21
10-Q
11/30/20
10-Q
8/31/20
10-K
5/31/20
10-Q
2/29/20
10-Q
11/30/19
10-Q
8/31/19
10-K
5/31/19
10-Q
2/28/19
10-Q
11/30/18
10-Q
8/31/18
10-K
5/31/18
10-Q
2/28/18

DCF

Discounted Cash Flow Valuation of Cintas Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.526B	$1.902B	$2.328B	$2.8B	$3.307B	$3.833B	$4.359B	$4.862B	$5.317B	$5.699B	$5.984B	$59.84B
DCF		$1.654B	$1.761B	$1.841B	$1.891B	$1.906B	$1.884B	$1.828B	$1.738B	$1.62B	$1.479B	$14.79B
Value	$32.39B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 13%

Earnings Stability 87%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	05-2015	05-2016	05-2017	05-2018	05-2019	05-2020	05-2021	05-2022	05-2023	TTM
Net Margin	9.6%	14%	9%	13%	13%	12%	16%	16%	15%	16%
ROA	17%	19%	11%	14%	16%	15%	17%	19%	21%	22%
ROE	22%	38%	21%	28%	29%	27%	30%	37%	35%	36%

What is the average Net Margin?

The average Net Margin over the past 5 years is +14.14%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.67%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +17.07%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.39%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +31.14%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.76%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	05-2015	05-2016	05-2017	05-2018	05-2019	05-2020	05-2021	05-2022	05-2023	TTM
Debt FCF	-	6.83	6.39	3.66	3.60	2.39	2.09	2.16	1.96	1.62
Debt Equity	0.67	0.71	1.36	0.84	0.95	0.79	0.69	0.85	0.64	0.58
MIN
Graham Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.62.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.38.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	05-2016	05-2018	05-2020	05-2022	Trend
Revenue	8.7%	6.4%	7.6%	12%	-0.47%
Net Income	10%	9.9%	15%	9.1%	-3.6%
Stockholders Equity	11%	5.1%	6.1%	17%	-0.82%
FCF	31%	13%	6.1%	-2.3%	-5.9%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +6.36%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.47%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +9.85%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -3.64%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +5.08%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.82%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +12.84%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -5.94%.