Cintas Corporation Fundamental Analysis (XETRA: CIT.DE)
Cintas Corporation Fundamental Analysis (XETRA: CIT.DE)
Cintas Corporation (XETRA: CIT.DE) shows moderate financial fundamentals with a PE ratio of 43.79, profit margin of 17.82%, and ROE of 41.93%. The company generates $11.4B 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 70.8/100 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 43.79 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CIT.DE's PEG of 3.18 indicates potential overvaluation.
Price to Book
The market values Cintas Corporation at 17.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.95 times EBITDA. This signals the market has high growth expectations.
How Well Does CIT.DE Make Money?
Net Profit Margin
For every $100 in sales, Cintas Corporation keeps $17.82 as profit after all expenses.
Operating Margin
Core operations generate 23.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $41.93 in profit for every $100 of shareholder equity.
ROA
Cintas Corporation generates $19.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cintas Corporation produces operating cash flow of $2.40B, showing steady but balanced cash generation.
Free Cash Flow
Cintas Corporation generates strong free cash flow of $2.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.06 in free cash annually.
FCF Yield
CIT.DE converts 2.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.42
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.34
vs 25 benchmark
How CIT.DE Stacks Against Its Sector Peers
| Metric | CIT.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.79 | 27.18 | Worse (Expensive) |
| ROE | 41.93% | 1167.00% | Weak |
| Net Margin | 17.82% | 45.00% | Weak |
| Debt/Equity | 0.52 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.45 | 21.97 | Neutral |
| ROA | 19.29% | -1345434.00% (disorted) | Strong |
CIT.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cintas Corporation'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