Cintas (CTAS, $390.25) fiscal Q4 earnings beats Zacks Consensus Estimate
Cintas posted earnings of $2.81 per share for the quarter ending May 31 2022, topping the Zacks Consensus Estimate of $2.68. The figure is +13.8% higher vs. the year-ago quarter.
Revenues rose +13% from the year-ago quarter to $2,074.7 million, also exceeding the Zacks Consensus Estimate of $2,001 million. Organic revenue grew + 12.7% year over year.
The company’s revenues from the Uniform Rental and Facility Services segment (accounting for about 78.6% of the reported quarter’s net sales) were $1,630.21 million, up +11.1% from the year-ago quarter.
Revenues from the First Aid and Safety Services segment (~ 10.5% of the reported quarter’s net sales) came in at $218.22 million, growing +16.7% year over year.
Revenues from the All Other business (around 10.9% of the reported quarter’s net sales) were $226.25 million, rising +24.4% year over year.
Looking ahead, Cintas expects revenues of $8.47-$8.58 billion for fiscal 2023, compared to the Zacks Consensus Estimate of $8.32 billion. The company projects earnings per share of $11.90-$12.30 for the fiscal year, vs. the Zacks Consensus Estimate of $12.29.
The company is expecting adjusted operating income in the range of $1.68 billion-$1.73 billion in fiscal 2023, compared with $1.55 billion reported in fiscal 2022. Interest expense is predicted to be approximately $110 million for the fiscal year. The company is anticipating an effective tax rate of around 20%, higher than 17.9% in fiscal 2022. The estimated increase in tax rate is likely to have a adverse effect of approximately 32 cents on fiscal 2023 earnings.
CTAS's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for CTAS turned positive on June 01, 2023. Looking at past instances where CTAS's MACD turned positive, the stock continued to rise in of 40 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 30, 2023. You may want to consider a long position or call options on CTAS as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
CTAS moved above its 50-day moving average on April 27, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CTAS advanced for three days, in of 359 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CTAS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CTAS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.210) is normal, around the industry mean (68.260). P/E Ratio (37.879) is within average values for comparable stocks, (118.043). Projected Growth (PEG Ratio) (2.917) is also within normal values, averaging (1.742). Dividend Yield (0.010) settles around the average of (0.038) among similar stocks. P/S Ratio (5.685) is also within normal values, averaging (55.514).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of rental and servicing of uniforms and other garments
Industry MiscellaneousCommercialServices
CTAS and
Correlation & Price change
A.I.dvisor indicates that over the last year, CTAS has been closely correlated with VRSK. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if CTAS jumps, then VRSK could also see price increases.
| Ticker / NAME | Correlation To CTAS | 1D Price Change % | ||
|---|---|---|---|---|
| CTAS | 100% | +0.82% | ||
| VRSK - CTAS | 69% Closely correlated | +0.39% | ||
| ALLE - CTAS | 68% Closely correlated | +0.02% | ||
| CPRT - CTAS | 67% Closely correlated | +0.23% | ||
| EFX - CTAS | 66% Closely correlated | -0.03% | ||
| EXPO - CTAS | 62% Loosely correlated | +0.80% | ||
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