Cintas (CTAS) AI Stock Analysis

• Market Cap: $77.07B
• Dividend Yield: 0.88%
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.77
• Revenue Growth: 8.60%
• EPS Growth: 11.45%
• Country: US
• Employees: 46,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.21
• Shares Outstanding: 399,889,650
• 10 Day Avg. Volume: 2,487,086
• 30 Day Avg. Volume: 2,095,744
• PEG Ratio: 3.08
• Price to Book (P/B): 19.51
• Price to Sales (P/S): 8.84
• P/FCF Ratio: 52.02
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 7.46
• Enterprise Value/Gross Profit: 14.85
• Enterprise Value/Ebitda: 28.12
• 1Y Price Target: $221.25
• Price Target Upside: 14.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 4.88
• Revenue Forecast (FY): $11.20B

• Rating: 76 Outperform
• Price Target: $224.00 ▲(16.16% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

CTAS scores well primarily on strong financial performance and a constructive earnings outlook (raised guidance and broad segment growth). The score is held back by a high P/E and only neutral-to-mixed technical signals, while the UniFirst acquisition adds upside potential but introduces integration and approval risk.

Positive Factors

Recurring revenue model & route density

Cintas' core business is built on recurring uniform, facility and safety service contracts with route-based delivery. That model yields predictable revenue, high customer retention and route density advantages that sustainably lower unit delivery and service costs, supporting margin durability.

Strong margins and profitability

Cintas reports robust gross and net margins, reflecting efficient operations across rental, direct-sales and service segments. Durable margins indicate pricing power, scale benefits and cost control that support operating cash flow and reinvestment capacity over the medium term.

Healthy balance sheet and cash conversion

The company converts earnings into cash effectively (OCF/net income ~1.06) and sustained free cash flow growth provides liquidity for dividends, buybacks and strategic M&A. This cash generation underpins financial flexibility and resilience across business cycles.

Negative Factors

Acquisition and regulatory execution risk

The UniFirst acquisition materially changes capital structure and integration scope: $5.5B transaction, ~$375M targeted synergies, bridge financing and an expected net leverage around 1.5x. Regulatory review, shareholder approvals and complex integration create multi-quarter execution and financing risk.

Structural margin pressure from costs and ERP

Rising selling/administrative expense rates, tariffs/sourcing cost volatility and an ongoing ERP rollout in Fire create persistent headwinds. These items can depress margins and require ongoing investment, making near-term operating margin stability harder to sustain absent offsetting price or efficiency gains.

Very high ROE may reflect low equity base

An elevated ROE suggests excellent capital returns but the firm notes it may stem in part from a smaller equity base rather than pure operational outperformance. If equity levels or leverage shift (e.g., post-acquisition), ROE could normalize and reveal greater sensitivity to capital structure changes.

Cintas Business Overview & Revenue Model

Company Description

Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms. It also offers first aid and safety services, and fire protection products and services. The company provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. Cintas Corporation was founded in 1968 and is headquartered in Cincinnati, Ohio.

How the Company Makes Money

Cintas makes money primarily through recurring service contracts that bundle products with ongoing delivery, maintenance, and compliance-related services. Its largest revenue stream is its Uniform Rental and Facility Services business, where customers pay periodic fees for uniforms and other facility-related items that Cintas supplies, regularly services (e.g., laundering/maintenance), and delivers on established routes; revenue is supported by long-term customer relationships and route density that lowers delivery and service costs. A second major stream is First Aid and Safety Services, which generates revenue from the restocking and servicing of first aid cabinets and related safety products (including eyewash and other safety consumables) provided on a recurring schedule. Cintas also earns revenue from Fire Protection Services through inspection, testing, and maintenance services as well as the sale/installation of fire protection equipment (e.g., extinguishers, suppression systems, alarms) depending on customer needs and local regulatory requirements. Additional revenue comes from Uniform Direct Sales, where apparel and related items are sold outright rather than rented, and from other facility services and supplies that may be sold as consumables alongside service visits. Across segments, earnings are influenced by contract retention, customer additions, pricing, route-based service execution, and the company’s ability to cross-sell multiple services to the same customer.

Cintas Financial Statement Overview

Summary

Strong profitability and operational efficiency with solid margins and consistent growth. Balance sheet leverage is low (debt-to-equity 0.18) and cash conversion is healthy (operating cash flow to net income 1.06), though there are minor watch items including slowing free cash flow growth and some margin pressure noted in the financial statement commentary.

Income Statement

Cintas has demonstrated strong revenue growth with a consistent upward trajectory over the years. The TTM data shows a solid gross profit margin of 24.51% and a net profit margin of 17.58%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are robust, reflecting operational efficiency. However, the gross profit margin has decreased compared to previous years, which could be a point of concern if the trend continues.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.18 in the TTM, significantly improved from previous years, indicating reduced leverage and financial risk. Return on equity is strong at 41.07%, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a solid financial structure. However, the high ROE could be partly due to lower equity levels, which should be monitored.

Cash Flow

Cintas has shown a positive free cash flow growth rate of 5.01% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.06 suggests that the company efficiently converts its earnings into cash. The free cash flow to net income ratio is healthy at 0.81, reflecting good cash flow management. However, the growth rate has slowed compared to previous periods, which could impact future liquidity.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	10.79B	10.34B	9.60B	8.82B	7.85B	7.12B
Gross Profit	5.42B	5.17B	4.69B	4.17B	3.63B	3.31B
EBITDA	2.86B	2.86B	2.52B	2.22B	1.99B	1.77B
Net Income	1.90B	1.81B	1.57B	1.35B	1.24B	1.11B
Balance Sheet
Total Assets	10.13B	9.83B	9.48B	8.83B	8.43B	8.56B
Cash, Cash Equivalents and Short-Term Investments	200.84M	263.97M	342.01M	124.15M	90.47M	493.64M
Total Debt	3.24B	2.65B	2.67B	2.67B	2.97B	2.72B
Total Liabilities	5.68B	5.14B	5.16B	4.96B	5.12B	4.87B
Stockholders Equity	4.46B	4.68B	4.32B	3.86B	3.31B	3.69B
Cash Flow
Free Cash Flow	1.78B	1.76B	1.67B	1.27B	1.30B	1.22B
Operating Cash Flow	2.20B	2.17B	2.08B	1.60B	1.54B	1.36B
Investing Cash Flow	-583.72M	-623.64M	-608.63M	-388.67M	-402.63M	-137.22M
Financing Cash Flow	-1.54B	-1.62B	-1.25B	-1.17B	-1.54B	-879.87M

Cintas Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 192.84
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTAS, the sentiment is Negative. The current price of 192.84 is below the 20-day moving average (MA) of 198.37, below the 50-day MA of 194.85, and below the 200-day MA of 200.93, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 10.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTAS.

Cintas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNF	78 Outperform	$4.75B	21.89	6.45%	0.71%	0.20%	2.72%
CTAS	76 Outperform	$77.07B	37.57	41.07%	0.88%	8.60%	11.45%
ECL	74 Outperform	$77.01B	35.83	22.03%	1.01%	1.38%	-2.54%
ARMK	68 Neutral	$10.63B	25.02	10.17%	1.14%	6.35%	24.07%
ABM	64 Neutral	$2.24B	17.89	8.80%	2.20%	4.62%	102.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VSTS	55 Neutral	$969.82M	-33.95	-4.55%	2.09%	-2.53%	-291.35%

Cintas Corporate Events

Cintas Announces UniFirst Acquisition and Strong Quarterly Growth

On March 10, 2026, Cintas agreed to acquire rival UniFirst in a cash-and-stock deal valuing UniFirst at about $5.5 billion, with shareholders receiving $155 in cash and 0.7720 Cintas shares per UniFirst share. The transaction, unanimously approved by both boards and backed by a voting agreement covering roughly two-thirds of UniFirst’s voting power, is expected to close in the second half of 2026, subject to shareholder and regulatory approvals.

Cintas will fund the cash portion using cash on hand and committed financing, including a $2.85 billion bridge facility, and estimates about $375 million in operating cost synergies within four years, implying an 8.0x EBITDA multiple including synergies. The deal is positioned to expand the combined group’s service capabilities, optimize shared technology and route networks, and create a more formidable competitor against alternative uniform and workwear procurement options, while management expects the transaction to be EPS-accretive by the end of the second full year after closing.

The merger agreement lays out customary conditions and termination rights, including reciprocal termination fees of $213.3 million for UniFirst and $350 million for Cintas if the deal falls through under specified circumstances. For employees, the companies say the overwhelming majority of UniFirst staff are expected to have opportunities at the combined business, and UniFirst equity awards will either be cashed out for merger consideration or converted into Cintas-linked awards, aligning incentives as the integration proceeds.

Alongside the deal announcement on March 11, 2026, Cintas reported preliminary fiscal third-quarter 2026 revenue of $2.84 billion, up 8.9% year-on-year, underscoring its growth trajectory as it moves to consolidate the sector. UniFirst, which plans to stop holding regular earnings calls while the transaction is pending, will release its fiscal second-quarter 2026 results on April 1, 2026, as investors assess how the combination could reshape the competitive landscape and value proposition for customers, employees and shareholders across North America.

The most recent analyst rating on (CTAS) stock is a Buy with a $245.00 price target. To see the full list of analyst forecasts on Cintas stock, see the CTAS Stock Forecast page.

Cintas Renews Cash Proposal to Acquire UniFirst Corporation

On December 22, 2025, Cintas Corporation announced that it had submitted, and on December 12, 2025 delivered, a renewed non-binding proposal to acquire all outstanding common and Class B shares of rival UniFirst Corporation for $275 per share in cash, valuing UniFirst at about $5.2 billion and representing a 64% premium to UniFirst’s 90-day average share price as of December 11, 2025. Cintas framed the move as a strategic combination that would create a leading player in uniform and facility services with expanded processing capacity, greater route density and the ability to serve well over 1 million business customers across the U.S. and Canada, while emphasizing that the offer carries no financing contingency, has full support from Cintas’ board, and includes a $350 million reverse termination fee to bolster deal certainty in the face of regulatory review, although UniFirst has so far only acknowledged receipt of the proposal without engaging substantively.

The most recent analyst rating on (CTAS) stock is a Sell with a $181.00 price target. To see the full list of analyst forecasts on Cintas stock, see the CTAS Stock Forecast page.