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Is this Large Market Cap Stock target price reasonable for Cintas Corporation (NASDAQ:CTAS)?

The company in question is, Cintas Corporation (NASDAQ:CTAS) currently with a stock price of 108.25 (-0.92% today). The market cap for Cintas Corporation is 11367.33, and is in the sector Services, and Business Services industry. The target price for Cintas Corporation is 121.18. Currently Cintas Corporation is trading with a P/E of 23.95, and a forward P/E of 22.18. Average volume for Cintas Corporation is 733.14 and so far today it is 419500.

Performance in the last year for Cintas Corporation has been 18.31%. For EPS growth, Cintas Corporation has seen a growth of 20.80%, and is looking to grow in the next year to 6.06%. More long term stats show that EPS growth has been 19.90% over the last five years and could be 10.34% for the next five years. Cintas Corporation has seen sales growth quarter over quarter at 7.90%, with EPS growth quarter over quarter at 38.50%. The 20-day simple moving average is -4.18%, with the 200-day simple moving average coming to 11.96%.

Since the IPO date for Cintas Corporation on the 3/26/1990, Cintas Corporation has seen performance year to date to be 18.89%. With Cintas Corporation trading at 108.25, the dividend yield is 0.97%, and the EPS is 4.52.

So could Cintas Corporation, be undervalued? Well as said before P/E is 23.95. The PEG is 2.32, P/S is 2.27 and the P/B is at 5.69. The P/cash is 69.4, with P/free cash flow at 60.11.

Cintas Corporation ability to deal with debt shows that the current ratio is 2.2, and the quick ratio is 1.9. This is with long term debt/equity at 0.53, and total debt/equity at 0.61.

In terms of margins, Cintas Corporation has a gross margin of 43.70%, an operating margin of 16.10% and a profit margin of 14.60%.Payout ratio for Cintas Corporation is 15.40%. Return on assets come to 17.20% with return on investment coming to 16.60%.

Insider ownership for Cintas Corporation, is at 0.30% and institutional ownership comes to 69.60%. Outstanding shares are at 105.01. While shares float is 88.78. The float short is currently 4.42%, and short ratio is 5.35.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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