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Cintas
(NASDAQ:CTAS)
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Rating:82Outperform
Price Target:
$237.00
▲(15.10% Upside)
Action:Reiterated
Date:08/04/26
CTAS scores well due to high-quality financial performance (expanding margins, strong profitability, and solid free cash flow) and a strong technical uptrend supported by positive momentum indicators. The score is tempered by a premium valuation (high P/E and modest yield) and specific risks highlighted in guidance and commentary, including UniFirst regulatory uncertainty, fuel/energy volatility, and the planned SAP headwind in the Fire segment.
Positive Factors
Recurring, route-based service model
Cintas’s route-based rental and service contracts create durable, recurring revenue and high customer retention. That model yields predictable cash flows, supports reinvestment in capacity and tech, and enables steady per-customer monetization via cross-selling over multiple years.
Negative Factors
Regulatory risk on UniFirst deal
An extended FTC review could delay or force concessions on the UniFirst acquisition, reducing or postponing expected scale synergies and cost saves. Prolonged regulatory uncertainty can increase transaction costs and integration complexity, affecting multi-quarter planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, route-based service model
Cintas’s route-based rental and service contracts create durable, recurring revenue and high customer retention. That model yields predictable cash flows, supports reinvestment in capacity and tech, and enables steady per-customer monetization via cross-selling over multiple years.
Read all positive factors
Cintas Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business units, highlighting which segments are driving earnings and where there might be challenges or opportunities for growth.
Reveals profitability across different business units, highlighting which segments are driving earnings and where there might be challenges or opportunities for growth.
Data provided by:
The Fly
The FlyCintas (CTAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.89B
Dividend Yield0.88%
Average Volume (3M)2.30M
Price to Earnings (P/E)41.2
Beta (1Y)0.72
Revenue Growth8.94%
EPS Growth11.03%
CountryUS
Employees48,300
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)4.97
Shares Outstanding400,169,560
10 Day Avg. Volume2,875,986
30 Day Avg. Volume2,297,232
Financial Highlights & Ratios
PEG Ratio3.18
Price to Book (P/B)13.50
Price to Sales (P/S)6.16
P/FCF Ratio36.88
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$222.60Price Target Upside8.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)5.5
Revenue Forecast (FY)$12.21B
Cintas Business Overview & Revenue Model
Company Description
Cintas Corporation (CTAS) is a business services company that provides corporate identity uniforms and related services, along with facility services and safety products. The company supplies, rents, maintains, and replaces workwear and other garm...
How the Company Makes Money
Cintas primarily makes money through recurring service contracts in which it supplies and services workplace products on a scheduled route basis. A core revenue stream is its uniform and work apparel programs, where customers pay ongoing fees for ...
Cintas Earnings Call Summary
Earnings Call Date:Jul 15, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 30, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture: the company reported strong top-line growth, significant margin expansion, double-digit EPS improvements, solid cash generation and shareholder returns, and confident fiscal 2027 guidance. The primary risks called out were regulatory uncertainty around the UniFirst acquisition, energy/fuel cost volatility, and some near-term variability in the Fire segment (including a planned SAP headwind). None of the challenges appear to offset the strong operational and financial momentum communicated on the call.Positive Updates
Strong Top-Line Growth (Quarter and Full Year)
Q4 total revenue rose 8.9% to $2.91 billion; Q4 organic revenue growth was 8.4%. Full-year 2026 revenue was ~$11.26 billion, up 8.9% YoY, with organic revenue growth of 8.3%.
Negative Updates
Regulatory Uncertainty on UniFirst Acquisition
Transaction is subject to regulatory review — the company received a second request from the FTC (similar to prior G&K experience). This creates timing and regulatory risk; management will not provide additional commentary while the process is ongoing.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Top-Line Growth (Quarter and Full Year)
Q4 total revenue rose 8.9% to $2.91 billion; Q4 organic revenue growth was 8.4%. Full-year 2026 revenue was ~$11.26 billion, up 8.9% YoY, with organic revenue growth of 8.3%.
Read all positive updates
Company Guidance
Management guided fiscal 2027 revenue of $12.10–$12.25 billion (up 7.4%–8.7%) and adjusted diluted EPS of $5.36–$5.50 (up 8.5%–11.3%), with implied incremental margins of about 30%–32% (inside their 25%–35% target) and implied operating‑margin expansion of roughly 10–60 basis points across the range. Assumptions include one extra workday in FY27 (~+40 bps to revenue), no additional acquisitions, constant FX, an effective tax rate near 20.2%, net interest expense around $105 million, expected CapEx near the historical ~3.5%–4% of revenue, and the guidance excludes non‑recurring UniFirst transaction costs, the effect of any future share buybacks, or significant economic disruptions.Cintas Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
80
Positive
Cash Flow
84
Very Positive
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.26B | 10.34B | 9.60B | 8.82B | 7.85B |
| Gross Profit | 5.69B | 5.17B | 4.69B | 4.17B | 3.63B |
| EBITDA | 3.12B | 2.86B | 2.52B | 2.22B | 1.99B |
| Net Income | 2.00B | 1.81B | 1.57B | 1.35B | 1.24B |
Balance Sheet | |||||
| Total Assets | 10.53B | 9.83B | 9.48B | 8.83B | 8.43B |
| Cash, Cash Equivalents and Short-Term Investments | 289.02M | 263.97M | 342.01M | 124.15M | 90.47M |
| Total Debt | 2.71B | 2.65B | 2.67B | 2.67B | 2.97B |
| Total Liabilities | 5.39B | 5.14B | 5.16B | 4.96B | 5.12B |
| Stockholders Equity | 5.14B | 4.68B | 4.32B | 3.86B | 3.31B |
Cash Flow | |||||
| Free Cash Flow | 1.88B | 1.76B | 1.67B | 1.27B | 1.30B |
| Operating Cash Flow | 2.28B | 2.17B | 2.08B | 1.60B | 1.54B |
| Investing Cash Flow | -568.43M | -623.64M | -608.63M | -388.67M | -402.63M |
| Financing Cash Flow | -1.68B | -1.62B | -1.25B | -1.17B | -1.54B |
Cintas Technical Analysis
Positive
205.91
Price Trends
184.22
Positive
179.25
Positive
184.50
Positive
Market Momentum
7.42
Positive
59.21
Neutral
27.52
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 205.91 is above the 20-day moving average (MA) of 199.14, above the 50-day MA of 184.22, and above the 200-day MA of 184.50, indicating a bullish trend. The MACD of 7.42 indicates Positive momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 27.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTAS.
Cintas Risk Analysis
Cintas disclosed 18 risk factors in its most recent earnings report. Cintas reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cintas Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $81.89B | 41.17 | 41.80% | 0.87% | 8.94% | 11.03% | |
71 Outperform | $78.14B | 37.02 | 21.41% | 1.06% | 7.11% | -0.48% | |
67 Neutral | $2.81B | 18.36 | 8.94% | 2.38% | 6.53% | 107.41% | |
67 Neutral | $5.09B | 44.26 | 5.32% | 0.49% | 1.41% | -22.01% | |
65 Neutral | $14.98B | 41.89 | 11.23% | 0.81% | 10.15% | 3.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $1.91B | -112.35 | -1.96% | ― | -0.84% | 29.88% |
* Industrials Sector Average
CTAS
Cintas
203.65
-17.11
-7.75%
ABM
ABM Industries
49.18
3.43
7.50%
ECL
Ecolab
283.14
19.47
7.38%
UNF
UniFirst
290.35
119.64
70.08%
ARMK
ARAMARK Holdings
56.22
17.10
43.72%
VSTS
Vestis Corporation
14.17
8.18
136.56%
Cintas Corporate Events
Business Operations and StrategyExecutive/Board Changes
Cintas Restructures Executive Leadership, Names New President
Positive
Aug 3, 2026
On July 28, 2026, Cintas Corporation announced a leadership restructuring, separating the roles of President and Chief Executive Officer and appointing current Executive Vice President and Chief Operating Officer Jim Rozakis as President and COO, ...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Cintas Faces FTC Review in UniFirst Acquisition Plan
Neutral
Jun 12, 2026
On March 10, 2026, Cintas agreed to acquire UniFirst through a two-step merger that will ultimately make UniFirst a wholly owned subsidiary of Cintas, consolidating their positions in the uniform and facilities services sector. On June 11, 2026, t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.