Cintas (CTAS) AI Stock Analysis

• Market Cap: $73.90B
• Dividend Yield: 0.88%
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 42.2
• Beta (1Y): 0.81
• Revenue Growth: 8.21%
• EPS Growth: 13.56%
• Country: US
• Employees: 46,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.20
• Shares Outstanding: 401,866,670
• 10 Day Avg. Volume: 2,085,000
• 30 Day Avg. Volume: 2,195,385
• 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: 1.20
• Enterprise Value/Revenue: 8.38
• Enterprise Value/Gross Profit: 16.73
• Enterprise Value/Ebitda: 29.95
• 1Y Price Target: $221.33
• Price Target Upside: 20.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: $226.00 ▲(22.89% Upside)

Cintas' strong financial performance and positive earnings call are the primary drivers of its stock score. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Cintas' strong revenue growth of 8.7% reflects robust demand for its services, indicating a solid market position and effective business strategy.

Operating Income Increase

The 10.1% increase in operating income demonstrates Cintas' efficient operations and ability to convert revenue growth into higher profitability.

Dividend Growth

Consistent dividend growth over 42 years underscores Cintas' strong cash generation and commitment to returning value to shareholders.

Negative Factors

Uniform Direct Sale Decline

The 9.2% decline in Uniform Direct Sale could signal challenges in this segment, potentially affecting future revenue diversification and growth.

Higher Effective Tax Rate

An increased effective tax rate reduces net earnings, potentially impacting Cintas' profitability and cash flow in the long term.

SAP Implementation Costs

Costs associated with SAP implementation are pressuring margins, which could affect Cintas' cost structure and profitability if not managed effectively.

Cintas Business Overview & Revenue Model

Company Description

Cintas Corporation (CTAS) is a leading provider of corporate identity uniform programs and related services, operating primarily in the uniform rental and facility services sectors. The company offers a wide range of products and services including uniforms, mats, towels, restroom supplies, first aid and safety products, as well as fire protection services. With a focus on enhancing workplace safety and image, Cintas serves a diverse clientele across various industries, including healthcare, hospitality, and manufacturing.

How the Company Makes Money

Cintas generates revenue primarily through its uniform rental and facility services segments. The company's revenue model is based on long-term contracts that provide recurring income streams from uniform rental services, maintenance, and cleaning. Key revenue streams include the sale and rental of uniforms, mats, and other facility service products, as well as the provision of first aid and safety products. Additionally, Cintas benefits from partnerships with businesses that require consistent and compliant uniform solutions. The company's focus on customer retention and service quality contributes significantly to its earnings, as it maintains a strong client base that relies on its comprehensive service offerings.

Cintas Financial Statement Overview

Summary

Cintas demonstrates strong financial health with consistent revenue and profit growth, efficient operations, and a solid balance sheet. Despite minor fluctuations in margins and free cash flow growth, the company's overall financial position remains robust, supporting its competitive position in the specialty business services industry.

Income Statement

Cintas has demonstrated consistent revenue growth with a TTM growth rate of 2.09%. The company maintains strong profitability with a gross profit margin of 37.15% and a net profit margin of 17.54% in the TTM. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in gross profit margin from the previous annual report suggests potential cost pressures.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.56, indicating moderate leverage. The return on equity is impressive at 40.41%, reflecting strong profitability. The equity ratio of 48.34% suggests a balanced capital structure. However, the slight increase in total debt warrants monitoring.

Cash Flow

Cintas exhibits robust cash flow generation with an operating cash flow to net income ratio of 1.40 and a free cash flow to net income ratio of 0.80. Despite a slight decline in free cash flow growth in the TTM, the company maintains strong cash flow coverage, supporting its financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.56B	10.34B	9.60B	8.82B	7.85B	7.12B
Gross Profit	5.29B	5.17B	4.69B	4.17B	3.63B	3.31B
EBITDA	2.95B	2.86B	2.52B	2.22B	1.99B	1.77B
Net Income	1.85B	1.81B	1.57B	1.35B	1.24B	1.11B
Balance Sheet
Total Assets	9.84B	9.83B	9.48B	8.83B	8.43B	8.56B
Cash, Cash Equivalents and Short-Term Investments	138.14M	263.97M	342.01M	124.15M	90.47M	493.64M
Total Debt	2.68B	2.65B	2.67B	2.67B	2.97B	2.72B
Total Liabilities	5.08B	5.14B	5.16B	4.96B	5.12B	4.87B
Stockholders Equity	4.76B	4.68B	4.32B	3.86B	3.31B	3.69B
Cash Flow
Free Cash Flow	1.70B	1.76B	1.67B	1.27B	1.30B	1.22B
Operating Cash Flow	2.11B	2.17B	2.08B	1.60B	1.54B	1.36B
Investing Cash Flow	-625.53M	-623.64M	-608.63M	-388.67M	-402.63M	-137.22M
Financing Cash Flow	-1.45B	-1.62B	-1.25B	-1.17B	-1.54B	-879.87M

Cintas Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 183.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 183.9 is below the 20-day moving average (MA) of 192.32, below the 50-day MA of 200.15, and below the 200-day MA of 207.99, indicating a bearish trend. The MACD of -3.63 indicates Negative momentum. The RSI at 33.00 is Neutral, neither overbought nor oversold. The STOCH value of 28.81 is Neutral, 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
CTAS	―	$73.90B	42.20	42.04%	0.88%	8.21%	13.56%
ECL	―	$76.09B	38.59	21.73%	1.01%	1.38%	-2.54%
UNF	―	$2.77B	19.99	6.93%	0.90%	0.21%	2.72%
ARMK	―	$10.28B	29.04	12.00%	1.07%	-0.06%	3.83%
ABM	―	$2.64B	24.62	6.32%	2.46%	4.27%	-24.06%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VSTS	―	$709.30M	―	-3.36%	2.68%	-4.59%	-125.50%

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.