Cintas(US:CTAS) Financial Modeling Prepยท2025-09-24 21:00Core Viewpoint - Cintas Corporation has demonstrated strong financial performance, with earnings and revenue exceeding estimates, indicating robust growth in the business services industry [2][3][6]. Financial Performance - Cintas reported earnings per share (EPS) of $1.20, surpassing the estimated $1.19, and showing an improvement from $1.10 EPS in the same quarter last year [2][6]. - The company achieved actual revenue of approximately $2.72 billion, exceeding the estimated $2.70 billion, representing an 8.7% increase compared to $2.50 billion in the same quarter last year [3][6]. Growth Drivers - Revenue growth was positively influenced by acquisitions, contributing 0.9% to the increase [3]. - Cintas has consistently outperformed consensus revenue estimates in the last four quarters, showcasing its robust growth across various segments [3]. Financial Metrics - Cintas has a price-to-earnings (P/E) ratio of approximately 44.63, indicating a high valuation by investors [4][6]. - The price-to-sales ratio stands at about 7.81, suggesting investors are paying $7.81 for every dollar of sales [4]. - The company maintains a moderate level of debt with a debt-to-equity ratio of 0.57 and a current ratio of approximately 2.09, indicating strong short-term liability coverage [5]. Valuation Insights - The enterprise value to sales ratio is around 8.04, reflecting the company's total valuation relative to its sales [4]. - The enterprise value to operating cash flow ratio is approximately 38.40, providing insight into the company's valuation in relation to its cash flow [5]. - The earnings yield is about 2.24%, offering a perspective on the return on investment [5].