Cintas (CTAS) AI Stock Analysis

• Market Cap: $89.26B
• Dividend Yield: 0.7%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 50.3
• Beta (1Y): 0.82
• Revenue Growth: 7.75%
• EPS Growth: 16.21%
• Country: US
• Employees: 46,500
• Sector: Industrials
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): 1.09
• Shares Outstanding: 402,977,940
• 10 Day Avg. Volume: 1,311,265
• 30 Day Avg. Volume: 1,392,412
• PEG Ratio: 3.08
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 8.84
• P/FCF Ratio: 52.02
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 9.38
• Enterprise Value/Gross Profit: 18.95
• Enterprise Value/Ebitda: 33.57
• 1Y Price Target: $231.64
• Price Target Upside: 2.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $248.00 ▲(10.18%Upside)

Cintas' strong financial performance and positive earnings call are the primary drivers of its score, reflecting robust growth and profitability. While technical analysis and valuation present some concerns, the company's overall outlook remains favorable, supported by strategic investments and shareholder returns.

Positive Factors

Earnings

EPS increased 9%, above the consensus estimate.

Financial Performance

The company ended the year with fiscal 2025 gross margin hitting a record level of 50.0%.

Revenue Growth

Revenue of $2.67 billion was up 8.0% year-over-year, above the consensus estimate.

Negative Factors

Guidance

The midpoint of EPS guidance is below consensus.

Operating Margins

Incremental operating margin was 25% in the fourth quarter, below consensus of 32%.

Sales Growth

Management expects Uniform Direct Sales to grow at lower levels in the future.

Cintas Business Overview & Revenue Model

Company Description

Cintas Corporation is a leading provider of corporate identity uniforms and related business services in North America. The company operates across various sectors, including uniform rental and facility services, first aid and safety services, fire protection services, and direct sale of uniforms. Cintas aims to help businesses manage their uniform programs and workplace safety needs efficiently, ensuring a clean and professional appearance for their employees.

How the Company Makes Money

Cintas generates revenue primarily through its uniform rental and facility services, which account for the majority of its income. The company rents uniforms and provides laundering and maintenance services, charging a fee based on the number of employees and the types of uniforms used. Additionally, Cintas offers facility services like restroom supplies, mats, and cleaning products. Another significant revenue stream is the first aid and safety services, where Cintas provides first aid supplies, safety training, and compliance solutions. Moreover, Cintas sells fire protection equipment and services, including installation, inspection, and maintenance of fire suppression systems. The company's direct sale of uniforms also contributes to its revenue, catering to clients who prefer purchasing uniforms outright. Strategic partnerships and a robust distribution network further enhance Cintas's ability to reach customers and maintain steady earnings.

Cintas Financial Statement Overview

Summary

Cintas demonstrates strong financial performance with consistent revenue growth, high profitability margins, and effective cash flow management. The balance sheet is robust with moderate leverage, although careful debt management remains crucial.

Income Statement

Cintas has demonstrated a strong financial performance with consistent revenue growth, highlighted by a revenue increase from $7.09 billion in 2020 to $10.34 billion in 2025, showcasing solid operational expansion. The gross profit margin has remained robust, consistently above 50%, indicating effective cost management. The net profit margin has also improved, reaching 17.5% in 2025, reflecting enhanced profitability. The EBIT and EBITDA margins have shown steady increases, reinforcing the company's operational efficiency and ability to generate earnings from its core business activities.

Balance Sheet

Cintas maintains a sound financial position with a debt-to-equity ratio of 0.57 in 2025, indicating moderate leverage and prudent use of debt financing. The return on equity has been strong, improving to 38.7% in 2025, reflecting the company's effective use of shareholder capital to generate profits. The equity ratio, at 47.7% in 2025, provides a balanced capital structure with a healthy proportion of equity financing. These metrics suggest a stable and financially secure balance sheet, though the company must continue managing its debt levels carefully to preserve financial flexibility.

Cash Flow

Cintas has exhibited robust cash flow management, with operating cash flow consistently increasing, reaching $2.17 billion in 2025. The free cash flow has also shown a positive trajectory, growing from $1.06 billion in 2020 to $1.76 billion in 2025, indicating strong cash generation capabilities. The operating cash flow to net income ratio has been favorable, suggesting efficient conversion of earnings to cash. The free cash flow to net income ratio reinforces the company's ability to generate ample cash after capital expenditures, supporting future growth and shareholder returns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.14B	10.34B	9.60B	8.82B	7.85B	7.12B
Gross Profit	5.02B	5.17B	4.69B	4.17B	3.63B	3.31B
EBITDA	2.84B	2.86B	2.52B	2.22B	1.99B	1.77B
Net Income	1.78B	1.81B	1.57B	1.35B	1.24B	1.11B
Balance Sheet
Total Assets	9.61B	9.83B	9.48B	8.83B	8.43B	8.56B
Cash, Cash Equivalents and Short-Term Investments	243.43M	263.97M	342.01M	124.15M	90.47M	493.64M
Total Debt	2.69B	2.65B	2.67B	2.67B	2.97B	2.72B
Total Liabilities	5.02B	5.14B	5.16B	4.96B	5.12B	4.87B
Stockholders Equity	4.59B	4.68B	4.32B	3.86B	3.31B	3.69B
Cash Flow
Free Cash Flow	1.83B	1.76B	1.67B	1.27B	1.30B	1.22B
Operating Cash Flow	2.22B	2.17B	2.08B	1.60B	1.54B	1.36B
Investing Cash Flow	-579.73M	-623.64M	-608.63M	-388.67M	-402.63M	-137.22M
Financing Cash Flow	-1.52B	-1.62B	-1.25B	-1.17B	-1.54B	-879.87M

Cintas Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 225.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTAS, the sentiment is Positive. The current price of 225.09 is above the 20-day moving average (MA) of 220.17, above the 50-day MA of 221.61, and above the 200-day MA of 209.39, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 63.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTAS.

Cintas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTAS	76 Outperform	$89.26B	50.32	40.13%	0.70%	7.75%	16.21%
RTO	76 Outperform	$12.07B	35.89	5.86%	2.47%	1.56%	-32.50%
ABM	75 Outperform	$2.83B	36.40	4.30%	2.24%	3.52%	-67.27%
CBZ	72 Outperform	$3.33B	35.61	7.84%	―	46.49%	-25.62%
ARMK	71 Outperform	$11.14B	32.70	11.77%	0.96%	-3.47%	-45.03%
Sector *	67 Neutral	€10.35B	31.07	6.68%	2.63%	4.29%	-21.59%
UNF	61 Neutral	$3.03B	20.88	7.15%	0.81%	4.18%	18.93%

Cintas Corporate Events

Cintas Announces CFO Transition Effective June 2025

On April 4, 2025, Cintas Corporation announced the retirement of J. Michael Hansen from his role as Executive Vice President & Chief Financial Officer, effective May 31, 2025. Hansen will transition to a new role as Assistant to the CEO, supporting strategic initiatives and the transition to his successor, Scott Garula. Garula, who joined Cintas in 1996 and has held various leadership roles, will assume the position of Executive Vice President & CFO on June 1, 2025. His appointment is part of a planned succession process, and he is expected to continue Cintas’ financial strategy aimed at growth and shareholder value creation.