Cintas stock clocked fresh all-time highs earlier this month
Cintas Corporation (NASDAQ:CTAS) is an American corporation headquartered in Cincinnati, Ohio, which provides a range of products and services to businesses including uniforms, mats, mops, cleaning and restroom supplies, first aid and safety products, fire extinguishers and testing, and safety courses. In other words; they're a critical supplier of items you don't necessarily think about on a day-to-day basis. But that doesn't mean the stock offers little utility for potential investors.
Cintas stock is up 10% in 2021, culminating in a Sept. 13 record high of $409.80. However, the shares have shed 4.2% in the last seven trading days, breaching their 50-day moving average for the first time since early June. Moreover, Cintas Corporation offers a forward dividend of $3.80 and a dividend yield of 0.97%.
Cintas will release its first-quarter earnings results on Wednesday, September 29, before the market opens. At this time, consensus estimates from Wall Street expect Cintas stock to deliver earnings of $2.74 per share for Q1 of 2022.
In recent history, Cintas stock has beat earnings expectations on all four of its most recently released quarterly earnings reports. For Q1 of fiscal 2021, CTAS beat analysts’ estimates by a margin of $0.65, reporting an EPS of $2.78. For Q2 of fiscal 2021. Cintas' EPS decreased to $2.62, still beating expectations by a margin of $0.44. For Q3 of fiscal 2021, CTAS posted another decrease in earnings, dropping to $2.37 per share. However, the distribution company still beat estimates by a margin of $0.16. For Q4 of fiscal 2021, Cintas reported an EPS of $2.47 and beat expectations by a margin of $0.17.
From a fundamental perspective, Cintas stock has a premium valuation. CTAS trades at an extremely high price-earnings ratio of 38.37 and has a forward price-earnings ratio of 37.17, which signals minimal expected growth. In general, Cintas stock does not seem to warrant its valuation given its extremely slow growth rate. Since fiscal 2018, CTAS has grown revenues by just 10% and net income by just 32%.