Cintas Stock Story

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CTAS
 Stock
  

USD 425.61  2.00  0.47%   

By Vlad Skutelnik
Macroaxis Story
Lets try to sum up the odds of Cintas Corp to fully recover from the latest fall as its shares went up 0.03%. Cintas Corp current daily volatility is 2.01 percent, with a beta of 1.26 and an alpha of 0.02 over DOW. While some of us are getting more passionate about apparel, it makes sense to sum up Cintas Corp in greater detail to make a better estimate of its volatility. We will evaluate why recent Cintas Corp price moves suggest a bounce in August.
Published over three weeks ago
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Chances of Cintas Corp to fall after the volatility advances

Cintas Corp currently holds roughly 84.14 M in cash with 1.44 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.82.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cintas Corp has an asset utilization ratio of 185.65 percent. This connotes that the company is making $1.86 for each dollar of assets. An increasing asset utilization means that Cintas Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Cintas Corp, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Cintas Corp along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Cintas Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Cintas Corp in the context of predictive analytics.
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10 Analysts
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cintas Corp. Your research has to be compared to or analyzed against Cintas Corp's peers to derive any actionable benefits. When done correctly, Cintas Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Cintas Corp.

How important is Cintas Corp's Liquidity

Cintas Corp financial leverage refers to using borrowed capital as a funding source to finance Cintas Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cintas Corp 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 Corp'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 Corp, but it might be worth checking our own buy vs. sell analysis

Cintas Corp Correlation with Peers

Investors in Cintas can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Cintas Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Cintas Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Cintas is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Cintas for more details

Breaking down Cintas Corp Indicators

Cintas Corp secures Sharpe Ratio (or Efficiency) of -0.062, which signifies that the company had -0.062% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Cintas Corp exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Cintas Corp mean deviation of 1.49, and Risk Adjusted Performance of (0.13) to double-check the risk estimate we provide.
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0.57-0.67-0.360.62
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Momentum Analysis of Cintas Corp suggests possible reversal in August

The treynor ratio is down to -0.15 as of today.
As of the 13th of July 2022, Cintas Corp shows the mean deviation of 1.49, and Risk Adjusted Performance of (0.13). Cintas Corp 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 Corp, which can be compared to its rivals. Please confirm Cintas Corp coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Cintas Corp is priced correctly, providing market reflects its regular price of 377.57 per share. Given that Cintas Corp has jensen alpha of 0.0166, we suggest you to validate Cintas Corp's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

While other entities within the specialty business services industry are still a little expensive, even after the recent corrections, Cintas Corp may offer a potential longer-term growth to retail investors. Taking everything into account, as of the 13th of July 2022, our actual 90 days buy-hold-sell recommendation on the enterprise is Buy. We believe Cintas Corp is currently undervalued with very small chance of distress for the next two years.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Cintas Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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