Cintas (CTAS) AI Stock Analysis

• Market Cap: $85.83B
• Dividend Yield: 0.76%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 48.1
• Beta (1Y): 0.81
• Revenue Growth: 7.75%
• EPS Growth: 16.21%
• Country: US
• Employees: 46,500
• Sector: Industrials
• Sector Strength: 75
• Industry: Specialty Business Services
• EPS (TTM): 1.09
• Shares Outstanding: 402,977,940
• 10 Day Avg. Volume: 1,694,943
• 30 Day Avg. Volume: 1,563,768
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 9.38
• Enterprise Value/Gross Profit: 18.95
• Enterprise Value/Ebitda: 33.57
• 1Y Price Target: $233.00
• Price Target Upside: 9.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 73 Outperform
• Price Target: $241.00 ▲(13.15% Upside)

Cintas' overall stock score is driven by its strong financial performance and positive earnings call sentiment, which highlight robust growth and strategic investments. However, the high valuation and mixed technical indicators temper the score, suggesting potential caution for new investors.

Positive Factors

Earnings

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

Operational Efficiency

Operationally, Cintas continues to benefit from ongoing technology and automation investments, which combined to drive healthy operating margin expansion during the quarter across all three reportable segments.

Revenue Growth

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

Negative Factors

Earnings Guidance

The midpoint of EPS guidance is below consensus.

Margin Performance

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 (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 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: Negative
• Last Price: 212.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 212.99 is below the 20-day moving average (MA) of 219.89, below the 50-day MA of 219.50, and above the 200-day MA of 209.79, indicating a neutral trend. The MACD of -1.84 indicates Positive momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 11.65 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
ECL	80 Outperform	$79.19B	37.22	24.26%	0.90%	0.57%	25.50%
ABM	75 Outperform	$3.04B	39.16	4.30%	2.09%	3.52%	-67.27%
UNF	74 Outperform	$3.13B	21.64	7.15%	0.79%	4.18%	18.93%
CTAS	73 Outperform	$85.83B	48.13	40.13%	0.76%	7.75%	16.21%
ARMK	67 Neutral	$10.37B	29.63	12.00%	1.07%	-0.06%	3.83%
Sector *	64 Neutral	$10.95B	16.10	8.81%	1.99%	2.59%	-16.41%
VSTS	47 Neutral	$598.55M	122.82	-3.36%	3.08%	-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.