Cintas Corp CTAS

Morningstar Rating
$205.30 +1.44 (0.71%)
View Full Chart

Company Report

Cintas Earnings: Fiscal First-Quarter Results Continue to Look Solid

Wide-moat Cintas reported fiscal 2025 first-quarter results (ended August) that reflect continued healthy growth across all three business segments. Organic top-line gains were mostly in line with our forecast, while operating margin came in slightly ahead, likely due to lower energy-related outlays. Fiscal 2025 revenue and EPS guidance were largely in line with our model assumptions. We've raised our fair value estimate to $137 from $130, due to slightly higher long-term margin assumptions and the time value of money. Note our fair value estimate reflects the September 2024 4-for-1 stock split. In our view, the stock is still rich relative to our long-term free cash flow forecasts.

Price vs Fair Value

CTAS is trading at a 22% premium.
Price
$205.30
Fair Value
$691.00
Uncertainty
Medium
1-Star Price
$515.85
5-Star Price
$44.40
Economic Moat
Rwnl
Capital Allocation
Vcfskss

Bulls Say, Bears Say

Bulls

Cintas’ industry-leading operating efficiency stems from its significant scale-based cost advantages, achieved through superior route density.

Bears

Competitors are not standing still. Large providers like UniFirst and Aramark are also pursuing market share.

News

Trading Information

Previous Close Price
$203.86
Day Range
$202.38205.50
52-Week Range
$119.73211.57
Bid/Ask
$204.86 / $205.95
Market Cap
$82.79 Bil
Volume/Avg
1.1 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
54.17
Price/Sales
8.68
Dividend Yield (Trailing)
0.68%
Dividend Yield (Forward)
0.76%
Total Yield
2.18%

Company Profile

Cintas is positioned as a one-stop shop that rents/sells uniforms and ancillary products and services, such as mops, first aid kits, and fire inspections. In its core uniform and facility services unit (a majority of sales), Cintas provides uniform rental programs for items including office attire, custom-tailored apparel, flame-resistant clothing, lab coats, and other profession-specific clothing. Facilities products include the rental and sale of entrance mats, mops, shop towels, hand sanitizers, and restroom supplies. Cintas' remaining businesses include first aid and safety services, fire protection services, and uniform direct sales.
Sector
Industrials
Industry
Specialty Business Services
Stock Style Box
Large Core
Total Number of Employees
46,500

Competitors

Valuation

Metric
CTAS
ECL
URI
Price/Earnings (Normalized)
54.1741.5718.58
Price/Book Value
20.598.726.37
Price/Sales
8.684.663.65
Price/Cash Flow
38.7828.7611.67
Price/Earnings
CTAS
ECL
URI

Financial Strength

Metric
CTAS
ECL
URI
Quick Ratio
0.870.890.69
Current Ratio
1.741.500.81
Interest Coverage
20.536.626.14
Quick Ratio
CTAS
ECL
URI

Profitability

Metric
CTAS
ECL
URI
Return on Assets (Normalized)
18.82%8.13%7.83%
Return on Equity (Normalized)
40.63%22.00%25.87%
Return on Invested Capital (Normalized)
25.58%12.02%12.11%
Return on Assets
CTAS
ECL
URI

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