Cintas’ Performance versus Its Peers in a Competitive Market
Cintas and its peers
An analysis of Cintas’ income statement in 1Q16 follows:
- The net profit margins of Cintas (CTAS), Aramark (ARMK), Gentex (GNTX), UniFirst (UNF), and Airgas (ARG) are 8.35%, 0.98%, 19.66%, 8.89%, and 6.54%, respectively.
- The EPS (earnings per share) of Cintas, Aramark, Gentex, UniFirst, and Airgas are $0.88, $0.14, $0.25, $1.62, and $1.16, respectively.
An analysis of Cintas’ balance sheet in 1Q16 follows:
- The current ratios of Cintas, Aramark, Gentex, UniFirst, and Airgas are 1.80, 1.31, 6.15, 3.41, and 0.96, respectively.
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An analysis of Cintas’ valuation follows:
- The PE (price-to-earnings) ratios of Cintas, Aramark, Gentex, UniFirst, and Airgas are 25.04x, 34.31x, 15.18x, 17.28x, and 18.83x, respectively.
- The PBV (price-to-book value) ratios of Cintas, Aramark, Gentex, UniFirst, and Airgas are 5.06x, 3.99x, 2.68x, 1.75x, and 3.23x, respectively.
According to the above findings, Cintas outperformed its peers based on the PE ratio and the PBV ratio. Based on the current ratio, net profit margin, and EPS, the performance is similar for Cintas and its peers.
ETFs that invest in Cintas
The Guggenheim S&P Equal Weight Industrials ETF (RGI) invests 1.56% of its holdings in Cintas. RGI tracks an equal-weighted index of US Industrials stocks drawn from the S&P 500.
The Guggenheim S&P 500 Pure Growth ETF (RPG) invests 0.69% of its holdings in Cintas. RPG tracks an index of primarily large and mid-caps with strong growth characteristics. The index selects companies from the S&P 500 Index based on three growth factors.
The First Trust Industrials/Producer Durables AlphaDEX ETF (FXR) invests 0.66% of its holdings in Cintas. FXR tracks a quant-driven, tiered, and equal-weighted index that select US industrial stocks likely to outperform the sector.
Comparing Cintas to its ETFs
An analysis of Cintas’ price movement follows:
- The YTD (year-to-date) price movements of Cintas, RGI, RPG, and FXR are 9.83%, -10.75%, 0.12%, and -12.97%, respectively.
An analysis of Cintas’ valuation follows:
- The PE ratios of Cintas, RGI, RPG, and FXR are 25.04x, 17.91x, 24.75x, and 16.28x, respectively.
- The PBV ratios of Cintas, RGI, RPG, and FXR are 5.06x, 3.49x, 4.30x, and 2.54x, respectively.
According to the above findings, Cintas outperformed its ETFs based on the price movement, PE ratio, and PBV ratio.
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