Cintas Corp Fundamental Analysis
Cintas Corp (CIT.DE) shows moderate financial fundamentals with a PE ratio of 35.78, profit margin of 17.57%, and ROE of 41.47%. The company generates $2.8B in annual revenue with moderate year-over-year growth of 7.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CIT.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCIT.DE demonstrates superior asset utilization.
Valuation Score
WeakCIT.DE trades at a premium to fair value.
Growth Score
ExcellentCIT.DE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCIT.DE maintains a strong and stable balance sheet.
Profitability Score
ExcellentCIT.DE achieves industry-leading margins.
Key Financial Metrics
Is CIT.DE Expensive or Cheap?
P/E Ratio
CIT.DE trades at 35.78 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CIT.DE's PEG of 3.22 indicates potential overvaluation.
Price to Book
The market values Cintas Corp at 14.50 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.11 times EBITDA. This is generally considered low.
How Well Does CIT.DE Make Money?
Net Profit Margin
For every $100 in sales, Cintas Corp keeps $17.57 as profit after all expenses.
Operating Margin
Core operations generate 22.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.47 in profit for every $100 of shareholder equity.
ROA
Cintas Corp generates $18.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cintas Corp produces operating cash flow of $558.83M, showing steady but balanced cash generation.
Free Cash Flow
Cintas Corp generates strong free cash flow of $453.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.47 in free cash annually.
FCF Yield
CIT.DE converts 10.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
14.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.41
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How CIT.DE Stacks Against Its Sector Peers
| Metric | CIT.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.78 | 26.13 | Worse (Expensive) |
| ROE | 41.47% | 1245.00% | Weak |
| Net Margin | 17.57% | -34958.00% (disorted) | Strong |
| Debt/Equity | 0.61 | 0.74 | Neutral |
| Current Ratio | 1.98 | 10.42 | Neutral |
| ROA | 18.97% | -1486191.00% (disorted) | Strong |
CIT.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cintas Corp's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
112.89%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
72.58%
Industry Style: Cyclical, Value, Infrastructure
High Growth