Is it time to Buy before this week’s earning report Cintas (NASDAQ:CTAS)

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Earnings results for Cintas (NASDAQ:CTAS)

Cintas Corporation is expected* to report earnings on 09/23/2020 before market open. The report will be for the fiscal Quarter ending Aug 2020. According to Zacks Investment Research, based on 8 analysts’ forecasts, the consensus EPS forecast for the quarter is $2.15. The reported EPS for the same quarter last year was $2.32.

Cintas last released its earnings data on July 23rd, 2020. The business services provider reported $1.35 earnings per share for the quarter, beating the consensus estimate of $1.22 by $0.13. The firm earned $1.62 billion during the quarter, compared to analysts’ expectations of $1.56 billion. Its quarterly revenue was down 9.7% on a year-over-year basis. Cintas has generated $8.11 earnings per share over the last year and currently has a price-to-earnings ratio of 40.0. Cintas has confirmed that its next quarterly earnings report will be published on Wednesday, September 23rd, 2020.

Analyst Opinion on Cintas (NASDAQ:CTAS)

11 Wall Street analysts have issued ratings and price targets for Cintas in the last 12 months. Their average twelve-month price target is $266.33, predicting that the stock has a possible downside of 17.80%. The high price target for CTAS is $347.00 and the low price target for CTAS is $175.00. There are currently 1 sell rating, 6 hold ratings and 4 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Cintas has received a consensus rating of Hold. The company’s average rating score is 2.27, and is based on 4 buy ratings, 6 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $266.33, Cintas has a forecasted downside of 17.8% from its current price of $324.01. Cintas has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Cintas (NASDAQ:CTAS)

Cintas has a dividend yield of 0.81%, which is in the bottom 25% of all stocks that pay dividends. Cintas does not have a long track record of dividend growth. The dividend payout ratio of Cintas is 31.44%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Cintas will have a dividend payout ratio of 27.39% next year. This indicates that Cintas will be able to sustain or increase its dividend.

Insiders buying/selling: Cintas (NASDAQ:CTAS)

In the past three months, Cintas insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $6,891,888.00 in company stock. Only 15.90% of the stock of Cintas is held by insiders. 64.67% of the stock of Cintas is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Cintas (NASDAQ:CTAS

Earnings for Cintas are expected to grow by 13.26% in the coming year, from $8.22 to $9.31 per share. The P/E ratio of Cintas is 40.00, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 18.40. The P/E ratio of Cintas is 40.00, which means that it is trading at a more expensive P/E ratio than the Industrial Products sector average P/E ratio of about 27.36. Cintas has a PEG Ratio of 4.03. PEG Ratios above 1 indicate that a company could be overvalued. Cintas has a P/B Ratio of 10.42. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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