Stock Analysis on Net

Cintas Corp. (NASDAQ:CTAS)

$22.49

This company has been moved to the archive! The financial data has not been updated since January 8, 2025.

Price to Sales (P/S)
since 2005

Microsoft Excel

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Calculation

Cintas Corp., P/S, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-31), 10-K (reporting date: 2013-05-31), 10-K (reporting date: 2012-05-31), 10-K (reporting date: 2011-05-31), 10-K (reporting date: 2010-05-31), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-31), 10-K (reporting date: 2007-05-31), 10-K (reporting date: 2006-05-31), 10-K (reporting date: 2005-05-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Cintas Corp. Annual Report.


Share Price Trend
The share price exhibited an overall upward trajectory from 2005 through 2024, beginning at $10.82 and rising substantially to $188.71. Notable dips occurred around 2008 and 2009 with lows at $7.20 and $6.31 respectively, likely reflecting adverse market conditions during that period. After this downturn, the share price generally increased, accelerating considerably from around 2014 onward, indicating growing investor confidence or improved company performance.
Sales per Share Trend
Sales per share showed a general increase over the analyzed period, moving from $4.56 in 2005 to $23.81 in 2024. There were minor fluctuations, such as a slight decline between 2008 and 2010, but the overall pattern demonstrates steady growth. The consistent upward trend suggests an improvement in revenue generation per share, reflecting potentially expanding sales volume or pricing power.
Price to Sales (P/S) Ratio Analysis
The price-to-sales ratio exhibited significant variability over the period. From a high of 2.38 in 2005, it declined sharply to near 1.02 by 2009, aligning with the share price trough during that timeframe. Subsequent years showed a marked increase in the P/S ratio, reaching 7.93 by 2024. This rising ratio indicates that the market price of shares grew at a faster pace than sales per share, potentially signaling increased market optimism, improved profitability expectations, or a premium valuation relative to sales.
Overall Insights
The data reveals a recovery and growth pattern post-2009, with significant appreciation in share price outpacing sales growth as evidenced by the climbing P/S ratio. The company appears to have transitioned from a period of subdued valuation to one characterized by robust investor demand and higher market multiples. This could imply enhanced business prospects, higher margins, or strategic improvements recognized by the market. Investors should consider the rising P/S ratio in context, as elevated multiples can indicate both confidence and increased valuation risk.

Comparison to Industry (Industrials)