Cintas Corporation designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, first aid, safety and fire protection products and services. The company was founded in 1968 and is based in Cincinnati, Ohio.
CTAS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Cintas Corp. To summarize, we found that Cintas Corp ranked in the 39th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 42%. The most interesting components of our discounted cash flow analysis for Cintas Corp ended up being:
As a business, CTAS is generating more cash flow than 87.22% of positive cash flow stocks in the Industrials.
The business' balance sheet reveals debt to be 7% of the company's capital (with equity being the remaining amount). Approximately only 21.62% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
CTAS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 39.08% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CTAS, try REVG, TT, AZZ, KNL, and RSG.
CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) announced that the Company’s Board of Directors approved a $0.75 per share quarterly dividend at its meeting today. This dividend is payable on March 15, 2021 to shareholders of record as of February 15, 2021. Cintas has paid cash dividends on its common stock for 37 consecutive years since it went public in 1983 and increased the annual regular dividend every year. At its October 27, 2020 meeting, the Cintas Board of Directors appr
CINCINNATI--(BUSINESS WIRE)--To help businesses maintain their stock of hand hygiene and hard surface solutions, Cintas Corporation (NASDAQ: CTAS) now offers disposable Disinfecting Wipes and disposable hand Sanitizing Wipes. Disinfecting Wipes kill 99.9% of germs on washable hard, non-porous surfaces, and the Sanitizing Wipes are alcohol-free. Both are suitable for use in educational, retail, fitness and foodservice facilities. “Placing Disinfecting Wipes and Sanitizing Wipes throughout a faci
Having been selected in February 2014, Cintas (CTAS) is one of Dividends 500 oldest holdings and has been the third best performer of the portfolio during that time. Since its selection, the company has seen its stock rise 558% versus the 105% gain by the S&P 500, giving the portfolio...
Smart Dividends on Seeking Alpha | January 4, 2021