Cintas Corporation
Exchange: NASDAQSector: IndustrialsIndustry: Specialty Business Services
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.
Did you know?
Net income compounded at 12.7% annually over 6 years.
Current Price
$174.34
+1.34%GoodMoat Value
$116.92
32.9% overvaluedProfile
Valuation (TTM)
Market Cap$70.06B
P/E36.91
EV$75.86B
P/B14.96
Shares Out401.87M
P/Sales6.49
Revenue$10.79B
EV/EBITDA24.45
Cintas Corporation (CTAS) Stock Analysis
GoodMoat Analysis
Cintas is a high-quality business with a durable moat, evidenced by strong switching costs and niche dominance in uniform rental and facility services. However, its current valuation appears significantly elevated, trading at a P/E of 37.7 and a price far above the GoodMoat target, indicating an unfavourable margin of safety.
Read full analysis
Cintas Corporation provides corporate identity uniform programs and facility services like restroom supplies and first aid. Its business model creates a classic moat through high switching costs and niche dominance. For clients, managing uniform programs in-house is inefficient, and switching providers involves logistical hassle and re-kitting employees, making Cintas a mission-critical, 'sticky' service provider. This is reflected in its stellar financial quality, with an ROE of 40.5% and an operating margin of 22.8%, far exceeding typical value investing thresholds for high returns on capital. Applying the GoodMoat framework, it likely scores well on Moat criteria like Switching Costs and Niche Dominance, and its Quality Indicators are strong, meaning it would pass the initial Moat & Quality Gate. The critical issue is valuation. At a P/E of 37.7 and a stock price of $178.13, it trades at a significant premium to the GoodMoat target of $116.92. This suggests a deeply unfavourable or negative margin of safety in a DCF analysis. While the business itself is robust, the current price demands near-perfect future execution and leaves no room for error. For a value investor, this represents a classic case of a wonderful company at an unwonderful price, making further investigation for an immediate position unfavourable. It may become interesting only at a materially lower entry point.
Market Cap$70.06B
Current Price$174.34
P/E Ratio36.91
Forward P/E—
PEG Ratio3.41
EPS$4.40
Book Value$11.66
P/B Ratio14.96
CTAS Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 14.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.4B
Revenue
6.9B
FY19
7.1B
FY20
7.1B
FY21
7.9B
FY22
8.8B
FY23
9.6B
FY24
10.3B
FY25
Net Income
885M
FY19
876M
FY20
1.1B
FY21
1.2B
FY22
1.3B
FY23
1.6B
FY24
1.8B
FY25
CTAS 52-Week Range
$165.71
$226.12
50-Day MA: $190.92200-Day MA: $198.02
Did you know?
CTAS's revenue grew at a 7.0% CAGR over the last 6 years.
Cintas Corporation (CTAS) Financial Summary
Cintas Corporation (CTAS) is a Industrials company in the Specialty Business Services industry, listed on NASDAQ. The stock currently trades at $174.34 with a market capitalization of $70.06B.
Key valuation metrics include a P/E ratio of 36.91, price-to-book ratio of 14.96, and EPS of $4.40. The company reports a profit margin of 17.6% and return on equity of 40.5%.
CTAS Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $70.06B |
| P/E Ratio | 36.91 |
| EPS | $4.40 |
| P/B Ratio | 14.96 |
| P/S Ratio | 6.49 |
| EV/EBITDA | 24.45 |
| Dividend Yield | 0.87% |
| Profit Margin | 17.6% |
| Return on Equity | 40.5% |
| Debt/Equity | 0.57 |
CTAS Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $6.89B | $884.98M |
| FY20 | $7.09B | $876.04M |
| FY21 | $7.12B | $1.11B |
| FY22 | $7.85B | $1.24B |
| FY23 | $8.82B | $1.35B |
| FY24 | $9.60B | $1.57B |
| FY25 | $10.34B | $1.81B |
Cintas Corporation (CTAS) Valuation
Based on GoodMoat's DCF model, Cintas Corporation has a fair value estimate of $116.92. At the current price of $174.34, the stock appears 49.1% overvalued relative to our intrinsic value estimate.
CTAS Quality Indicators
Cintas Corporation maintains a profit margin of 17.6% and an operating margin of 22.8%. Return on equity stands at 40.5%. The current ratio is 2.09. Debt-to-equity ratio is 0.57.
About Cintas Corporation
Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe, and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.
CTAS Free Cash Flow
Cintas Corporation generated $1.78B in trailing twelve-month free cash flow, representing an FCF yield of 2.54%. This moderate FCF yield indicates reasonable cash generation.
CTAS Shares Outstanding
Cintas Corporation has 0.40 billion shares outstanding at a share price of $174.34, giving it a market capitalization of $70.06B.