The Company operates in four segments: (1) Rental Uniforms and Ancillary Products (2) Uniform Direct Sales (3) First Aid, Safety and Fire Protection Services, and (4) Document Management Services. As of May 31, 2010, the Company provided products and services to approximately 800,000 businesses.
Category | Investment Ideal | CTAS | Points |
| | | | |
| Earnings | | | |
| | 10 yr Avg. EPS Growth > 10% | 1.08% | 0 |
| Margins | | | |
| | 10 yr. Gross Margin Avg. > 35% | 42.10% | 1 |
| | 10 yr Net Margin Avg. > 15% | 8.81% | 0 |
| Debt | | | |
| | Debt to Total Capital < 35% | 23.68% | 1 |
| | Current Ratio > 1 | 3.97 | 1 |
| Return | | | |
| | 10 yr Avg. Return on Equity > 15% | 14.69% | 1 |
| | 10 yr Avg. Cash Return on Capital > 20% | 11.19% | 0 |
| Dividends | | | |
| | Years Dividend Growth > 10 | 27 | 1 |
| | 10 years Annual Average Growth > 10% | 8.96% | 0 |
| | 1 year Growth > 5 year Growth | No | 0 |
| | Any years of FCF Payout Ratio > 100% | No | 1 |
| Valuation | | | |
| | Trailing P/E < 15 | 19.91 | 0 |
| | Forward P/E < 12 | 17.64 | 0 |
| | Dividend Yield > 3% | 1.72% | 0 |
| | | | |
| | | Total Points | 6 |
A 6 point score puts Cintas on my low watch list. If the stock price drops into my buy range, I will work up a more detailed analysis.
No comments:
Post a Comment