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Cintas Corp (NAS:CTAS)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cintas Corp has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

CTAS' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 7

4
9

During the past 13 years, the highest Piotroski F-Score of Cintas Corp was 9. The lowest was 4. And the median was 7.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Aug16) TTM:Last Year (Aug15) TTM:
Net Income was 345.1 + 117.341 + 130.898 + 138.091 = $731 Mil.
Cash Flow from Operations was 121.954 + 32.117 + 168.691 + 157.588 = $480 Mil.
Revenue was 1219.08 + 1216.083 + 1271.405 + 1294.13 = $5,001 Mil.
Gross Profit was 527.4 + 524.608 + 553.718 + 583.774 = $2,190 Mil.
Average Total Assets from the begining of this year (Aug15)
to the end of this year (Aug16) was
(4122.949 + 4450.792 + 4231.21 + 4104.393 + 4167.145) / 5 = $4215.2978 Mil.
Total Assets at the begining of this year (Aug15) was $4,123 Mil.
Long-Term Debt was $1,045 Mil.
Total Current Assets was $1,595 Mil.
Total Current Liabilities was $711 Mil.
Net Income was 120.412 + 94.883 + 105.215 + 100.181 = $421 Mil.

Revenue was 1123.379 + 1108.847 + 1142.583 + 1198.89 = $4,574 Mil.
Gross Profit was 481.424 + 475.307 + 486.66 + 524.144 = $1,968 Mil.
Average Total Assets from the begining of last year (Aug14)
to the end of last year (Aug15) was
(4556.27 + 4697.571 + 4266.346 + 4192.46 + 4122.949) / 5 = $4367.1192 Mil.
Total Assets at the begining of last year (Aug14) was $4,556 Mil.
Long-Term Debt was $1,050 Mil.
Total Current Assets was $1,734 Mil.
Total Current Liabilities was $959 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cintas Corp's current net income (TTM) was 731. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cintas Corp's current cash flow from operations (TTM) was 480. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Aug15)
=731.43/4122.949
=0.17740457

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Aug14)
=420.691/4556.27
=0.09233232

Cintas Corp's return on assets of this year was 0.17740457. Cintas Corp's return on assets of last year was 0.09233232. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Cintas Corp's current net income (TTM) was 731. Cintas Corp's current cash flow from operations (TTM) was 480. ==> 480 <= 731 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Aug16)=Long-Term Debt/Average Total Assets from Aug15 to Aug16
=1044.628/4215.2978
=0.24781832

Gearing (Last Year: Aug15)=Long-Term Debt/Average Total Assets from Aug14 to Aug15
=1050/4367.1192
=0.2404331

Cintas Corp's gearing of this year was 0.24781832. Cintas Corp's gearing of last year was 0.2404331. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Aug16)=Total Current Assets/Total Current Liabilities
=1594.748/710.859
=2.24340973

Current Ratio (Last Year: Aug15)=Total Current Assets/Total Current Liabilities
=1733.952/959.326
=1.80746899

Cintas Corp's current ratio of this year was 2.24340973. Cintas Corp's current ratio of last year was 1.80746899. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Cintas Corp's number of shares in issue this year was 107.1. Cintas Corp's number of shares in issue last year was 112.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2189.5/5000.698
=0.43783888

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1967.535/4573.699
=0.43018463

Cintas Corp's gross margin of this year was 0.43783888. Cintas Corp's gross margin of last year was 0.43018463. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Aug15)
=5000.698/4122.949
=1.21289349

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Aug14)
=4573.699/4556.27
=1.00382528

Cintas Corp's asset turnover of this year was 1.21289349. Cintas Corp's asset turnover of last year was 1.00382528. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+1+1+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cintas Corp has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Cintas Corp Annual Data

May07May08May09May10May11May12May13May14May15May16
Question 1 1111111111
Question 2 1111111111
Question 3 0000111111
Question 4 1111111110
Question 5 0011010111
Question 6 0110001010
Question 7 1111111111
Question 8 0101110111
Question 9 0100101011
F-score 4766777797

Cintas Corp Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
Question 1 1111111111
Question 2 1111111111
Question 3 1111101111
Question 4 1111110000
Question 5 1111111110
Question 6 0100100001
Question 7 1111111111
Question 8 1111111111
Question 9 0000111111
F-score 7877977777
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