CTAS Cintas Corporation - Fundamental Analysis

NEUTRAL

CTAS Stock | Fundamental Analysis & Investment Insights

NASDAQ • Industrials • Specialty Business Services

Current Price

$186.72

Analyst Target

$216.82

+16.1% Upside

52W High

$229.24

52W Low

$180.39

Overview AI Snowflake Price Valuation Profitability Growth Health Peers Insiders

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025

Market cap

$75.51B

P/E

41.49

ROE

42.2%

Profit margin

17.5%

Debt/Equity

0.56

Dividend yield

0.96%

AI Analysis

Confidence Score

78%

Analysis Accuracy

Cintas Corporation (CTAS) trades at a premium valuation with strong historical profitability and consistent earnings execution, but faces headwinds from recent underperformance and elevated multiples relative to peers. The company has delivered robust ROE of 42.19% and gross margins above 50%, outperforming the industrials sector, though its P/E of 41.49 is significantly above the sector average of 31.89. Despite solid fundamentals, insider selling and a 1Y price decline of -13.1% suggest caution, while analysts maintain a Hold consensus with a 16% upside to the $216.82 target. Growth remains steady at ~9% YoY in revenue and earnings, but decelerating momentum and limited near-term catalysts constrain bullish sentiment.

Key Strengths

Exceptional profitability with ROE of 42.19%, significantly above sector average of 31.90%

High gross margin of 50.10% and operating margin of 22.73%, reflecting pricing power and operational efficiency

Consistent earnings beat record: 22 out of 25 quarters beat estimates, with an average surprise of 3.05% over the last four

Strong financial health with Debt/Equity of 0.56, well below sector average of 1.44

Revenue and earnings growth above sector averages: 8.7% YoY revenue growth vs 6.05% peer average

Key Risks

Elevated valuation: P/E of 41.49 vs sector average of 31.89 and forward P/E of 39.90 indicating limited margin of safety

Recent insider selling: $4.96M in sales by executives including CEO, signaling potential lack of confidence at current levels

Underperforming stock price: -13.1% 1Y return vs sector peers like JCI (+41.2%) and NOC (+13.5%)

Limited free cash flow and cash/debt transparency due to missing data, raising potential liquidity concerns

PEG ratio unavailable, but high P/E without clear acceleration in growth suggests potential overvaluation

AI Fair Value Estimate

Based on comprehensive analysis

$216.82

+16.1% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall

Strong

Value

Future

Past

Health

Dividend

AI Verdict

CTAS demonstrates elite profitability and operational consistency, but trades at a steep premium to both historical norms and peer group, limiting near-term upside despite solid fundamentals. The Hold-rated analyst consensus and insider selling temper enthusiasm, even as earnings growth and margin strength support long-term quality.

Key drivers: Superior ROE and margin profile vs peers, Premium valuation constraining risk/reward, Insider selling and relative price underperformance

Confidence

80%

Value

52/100

CTAS trades at a substantial valuation premium versus industrial peers like EMR (P/E 31.66) and NOC (P/E 20.08), despite superior growth and margins, which narrows the margin of safety.

Positives

Forward P/E of 39.90 implies market expectations for sustained growth
Price/Sales of 7.15 reflects strong brand and recurring service model

Watchpoints

P/E of 41.49 is 30% above sector average of 31.89, suggesting overvaluation
Price/Book of 15.82 is extremely high, indicating limited asset backing

Future

70/100

While CTAS maintains above-trend growth, recent price performance (1Y: -13.1%, 6M: -15.1%) and lack of upward revision momentum suggest limited near-term catalysts despite solid fundamentals.

Positives

Revenue and earnings growing at 8.7%-9.1% YoY, above sector average of 6.05%
Consistent Q/Q EPS growth of +10.1% most recently, indicating momentum

Watchpoints

No visible inflection in growth trajectory to justify current premium
Lack of 50-day and 200-day moving averages suggests technical weakness

Past

85/100

CTAS has a proven track record of execution with exceptional earnings consistency and margin discipline, but recent deceleration in beat magnitude and 1Y price decline of -13.1% signal fading momentum despite strong historical performance.

Positives

22 out of 25 quarters beat EPS estimates, with multiple double-digit surprises (e.g., +30.5% in Q3 2020)
ROA of 15.98% and stable margin expansion over time

Watchpoints

Earnings surprise magnitude has moderated in recent quarters (avg +3.05% last 4 vs +15%+ in 2020-2021)
52-week low of $180.39 is near current price, indicating weak support

Health

82/100

CTAS maintains a strong balance sheet with low leverage and solid liquidity, outperforming highly leveraged peers like ITW (Debt/Equity 2.79), though incomplete cash flow data introduces some uncertainty.

Positives

Debt/Equity of 0.56 is conservative and well below sector average of 1.44
Current ratio of 2.24 indicates strong short-term liquidity

Watchpoints

Missing total debt, cash, and free cash flow data limits full solvency assessment
Quick ratio of 1.03 suggests inventory may be a large component of current assets

Dividend

76/100

CTAS maintains a modest but sustainable dividend policy with a conservative payout ratio, though the low yield and lack of long-term growth visibility make it less compelling for income-focused investors.

Positives

Payout ratio of 36.00% is sustainable and leaves room for future increases
Dividend yield of 0.96% reflects commitment to shareholder returns

Watchpoints

Yield is below broader market average, limiting income appeal
No 5-year yield history available, making trend analysis difficult

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price

$186.72

Analyst Target

$216.82

Upside/Downside

+16.1%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for CTAS and closest competitors.

Updated 2025-11-14

Company	5Y	3Y	1Y	6M	1M	1W
CTAS Cintas Corporation Primary	+112.1%	+72.4%	-13.1%	-15.1%	-0.1%	+1.1%
JCI Johnson Controls International plc Peer	+189.6%	+89.8%	+41.2%	+21.7%	+7.1%	-2.9%
EMR Emerson Electric Co. Peer	+81.5%	+40.8%	+1.0%	+6.7%	-1.6%	-1.1%
NOC Northrop Grumman Corporation Peer	+93.9%	+17.1%	+13.5%	+19.0%	-8.4%	-1.9%
ITW Illinois Tool Works Inc. Peer	+29.2%	+14.8%	-7.4%	-1.7%	-1.5%	-0.6%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

41.49

39.9

N/A

15.82

7.15

7.35

27.91

$75.51B

Profitability

Profit margins and return metrics

Profit Margin 17.54%

Operating Margin 22.73%

Gross Margin 50.1%

ROE 42.19%

ROA 15.98%

Growth

Revenue and earnings growth rates

Revenue Growth +8.7%

Earnings Growth +9.1%

Q/Q Revenue Growth N/A

Q/Q Earnings Growth +8.7%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity

0.56

Moderate

Current Ratio

2.24

Strong

Quick Ratio

1.03

Good

Cash/Share

$0.34

Quarterly Earnings History

EPS performance vs analyst estimates

2025-12-18

$N/A

2025-09-24

$1.2

+0.3% surprise

2025-07-17

$1.09

+1.8% surprise

2025-03-26

$1.13

+7.1% surprise

Industrials Sector Comparison

Comparing CTAS against 28 companies in the Industrials sector (6 bullish, 21 neutral, 1 bearish)

P/E Ratio

41.49

This Stock

32.92

Sector Avg

+26.0% (Expensive)

Return on Equity (ROE)

42.19%

This Stock

31.08%

Sector Avg

+35.7% (Excellent)

Profit Margin

17.54%

This Stock

13.32%

Sector Avg

+31.6% (Superior)

Debt to Equity

0.56

This Stock

1.21

Sector Avg

-53.6% (Less Debt)

Revenue Growth

8.7%

This Stock

6.01%

Sector Avg

+44.7% (Fast Growth)

Current Ratio

2.24

This Stock

1.82

Sector Avg

+22.8% (Stronger)

Similar Companies

Peer comparison within the same industry

Company	AI Rating	Market Cap	P/E	ROE	Profit Margin	Price
CTAS Cintas Corporation	NEUTRAL	$75.51B	41.49	42.2%	17.5%	$186.72
JCI Johnson Controls International plc	NEUTRAL	$78.66B	44.97	11.4%	13.9%	$118.72
EMR Emerson Electric Co.	NEUTRAL	$72.17B	31.66	9.4%	12.7%	$127.58
NOC Northrop Grumman Corporation	BULLISH	$79.64B	20.08	26.2%	9.8%	$558.0
ITW Illinois Tool Works Inc.	NEUTRAL	$71.16B	23.64	91.7%	19.1%	$243.97

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date	Insider	Position	Transaction	Shares	Value
2025-10-29	COLETTI ROBERT E	Officer and Director	Stock Award	503	-
2025-10-29	TYSOE RONALD WILLIAM	Director	Stock Award	503	-
2025-10-29	CARMICHAEL BEVERLY K	Director	Stock Award	503	-
2025-10-29	BARSTAD MELANIE W	Director	Stock Award	503	-
2025-10-29	MUCCI MARTIN	Director	Stock Award	503	-
2025-10-29	SCAMINACE JOSEPH M	Director	Stock Award	503	-
2025-10-29	CARNAHAN KAREN L	Director	Stock Award	503	-
2025-08-11	ROZAKIS JAMES	Chief Operating Officer	Option Exercise	45,976	$4,059,974
2025-08-11	SCHNEIDER TODD M	Chief Executive Officer	Stock Award	46,350	$10,376,838
2025-08-11	DENTON DAVID BROCK	General Counsel	Stock Award	4,569	$1,022,908
2025-08-11	GARULA SCOTT	Chief Financial Officer	Stock Award	4,448	$995,818
2025-08-11	ROZAKIS JAMES	Chief Operating Officer	Stock Award	6,852	$1,534,026
2025-08-11	FARMER SCOTT D	Officer, Director and Beneficial Owner	Stock Award	976	$218,507
2025-07-30	TYSOE RONALD WILLIAM	Director	Sale	5,084	$1,136,121
2025-07-28	SCHNEIDER TODD M	Chief Executive Officer	Option Exercise	52,192	$4,682,150

Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus

HOLD

17 analysts

Bernstein

2025-11-12

init

Market Perform

Citigroup

2025-09-26

Maintains

Sell Sell

RBC Capital

2025-09-25

Maintains

Sector Perform Sector Perform

Wells Fargo

2025-09-25

Maintains

Equal-Weight Equal-Weight

JP Morgan

2025-09-25

Maintains

Overweight Overweight

RBC Capital

2025-08-21

reit

Sector Perform Sector Perform

UBS

2025-07-18

Maintains

Buy Buy

Baird

2025-07-18

Maintains

Neutral Neutral

Morgan Stanley

2025-07-18

Maintains

Equal-Weight Equal-Weight

Goldman Sachs

2025-07-02

Maintains

Buy Buy

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