Cintas Story

CTAS -- USA Stock

USD 331.42 0.77 0.23%

Macroaxis Story

Cintas is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 22nd of December 2020. Cintas Cash Flow Per Share is relatively stable at the moment as compared to the past year. Cintas reported last year Cash Flow Per Share of 12.49. As of 12/21/2020, Revenue to Assets is likely to grow to 1.04, while Revenue Per Employee is likely to drop slightly above 152.2 K. As many passive investors are finally getting excited about industrials space, Cintas could be a good starting point. We will analyze why Cintas investors may still consider a stake in the business.

Published over a month ago

View all stories for Cintas | View All Stories

Should I exit my Cintas (NASDAQ:CTAS) position?

The company currently holds 2.86 B in liabilities with Debt to Equity (D/E) ratio of 0.79, which is about average as compared to similar companies. 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 171.04 percent. This connotes that the company is making $1.71 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.

Cintas financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Cintas, including all of Cintas's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Cintas assets, the company is considered highly leveraged. Understanding the composition and structure of overall Cintas debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Cintas Total Liabilities

Cintas liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Cintas has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Cintas balance sheet include debt obligations and money owed to different Cintas vendors, workers, and loan providers. Below is the chart of Cintas short long-term liabilities accounts currently reported on its balance sheet.

You can use Cintas financial leverage analysis tool to get a better grip on understanding its financial position

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. Please check the breakdown between Cintas's total debt and its cash.

What do experts say?

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. It is good to see analyst projects for Cintas, but it might be worth checking our own buy vs. sell analysis

Breaking down Cintas Indicators

The modest gains experienced by current holders of Cintas could raise concerns from retail investors as the firm it trading at a share price of 346.13 on 523,009 in volume. The company management teams have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.81. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Asset Breakdown

4.8 B

Assets Non Current

3 B

Goodwill

2.3 B

Current Assets

	Total Assets	7.12 Billion
	Current Assets	2.27 Billion
	Assets Non Current	4.85 Billion
	Goodwill	2.99 Billion
	Tax Assets	6.9 Million

Another small fall for Cintas

Latest Information Ratio is up to -0.01. Price may fall again. As of the 21st of December, Cintas shows the Mean Deviation of 1.43, risk adjusted performance of 0.0932, and Downside Deviation of 1.67. Cintas technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Cintas, which can be compared to its rivals. Please confirm Cintas coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Cintas is priced correctly, providing market reflects its regular price of 346.13 per share. Given that Cintas has jensen alpha of 0.1466, we suggest you to validate Cintas's prevailing market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Cintas

While many of the other players in the specialty business services industry are either recovering or due for a correction, Cintas may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 21st of December 2020, we believe that at this point, Cintas is overvalued with very low chance of financial distress within the next 2 years. Our ongoing Buy-Hold-Sell recommendation on the enterprise is Hold.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Cintas. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC