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1. Company Snapshot

1.a. Company Description

Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America.It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments.The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.


It also offers first aid and safety services, and fire protection products and services.The company provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations.Cintas Corporation was founded in 1968 and is headquartered in Cincinnati, Ohio.

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1.b. Last Insights on CTAS

Cintas Corporation faces negative drivers, including a high valuation at ~40x forward PE, which may deter investors. Weakness in Uniform Direct Sale and macroeconomic uncertainties pose risks, given the company's sensitivity to economic cycles. Despite strong operational performance, with Q1 FY2026 revenue up 8.7% year-over-year, and margin expansion, investors are concerned about the stock's valuation. A $1.0 billion stock buyback authorization and a 15.4% dividend increase demonstrate a shareholder-friendly stance, but may not alleviate concerns about the company's premium valuation.

1.c. Company Highlights

2. Cintas Corporation Delivers Strong Q1 FY2026 Results

Cintas Corporation reported a robust first quarter for fiscal 2026, with total revenue growing 8.7% to $2.72 billion, driven by a 7.8% organic growth rate across all three route-based businesses. The company's gross margin expanded to 50.3%, while operating income increased 10.1% to $617.9 million. Diluted EPS was $1.20, a 9.1% year-over-year increase, slightly beating estimates of $1.19.

Publication Date: Sep -26

📋 Highlights
  • Total Revenue Growth:: Increased 8.7% to $2.72 billion, with 7.8% organic growth.
  • Gross Margin Expansion:: Rose to 50.3%, driven by operational efficiency and pricing discipline.
  • Operating Income Growth:: Surged 10.1% to $617.9 million, reflecting strong performance across all segments.
  • EPS Increase:: Diluted EPS reached $1.20, up 9.1% year-over-year, signaling improved profitability.
  • Full-Year Guidance Raised:: Revenue projected to grow 7%-8.1% ($11.06B-$11.18B), with EPS expected to rise 7.7%-10.5% ($4.74-$4.86).

Revenue Growth Drivers

The company's success was driven by its ability to convert no-programmers to its rental service, sell additional products and services to existing customers, and maintain strong retention rates. This strategic focus on customer service and continuous improvement has enabled Cintas to deliver consistent growth and value to shareholders.

Business Segment Performance

Cintas' Uniform Direct Sales business grew at a 9% rate, excluding a 30 basis point headwind. The company's First Aid business is expected to grow at a low double-digit rate over the next 3 to 5 years, driven by its attractive gross margin of 56.8%, which is expected to continue improving as the company leverages its investments.

Investment Strategy and Outlook

Cintas is investing heavily in technology, particularly in AI, analytics, and machine learning, to enhance customer experience and employee productivity. The company remains active in mergers and acquisitions, with a focus on opportunities within its Fire Safety business. With a strong track record of execution and a confident outlook, Cintas has raised its full-year fiscal 2026 guidance, expecting revenue between $11.06 billion and $11.18 billion, representing 7% to 8.1% growth.

Valuation and Financial Metrics

With a P/E Ratio of 44.49 and an EV/EBITDA ratio of 28.71, Cintas' valuation reflects its strong growth prospects. The company's ROIC of 19.17% and ROE of 40.41% demonstrate its ability to generate returns on capital and equity. Analysts estimate revenue growth at 7.9% for the next year, indicating a positive outlook for the company's future performance.

3. NewsRoom

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Cintas Corporation Announces Webcast for Second Quarter Fiscal Year 2026 Results

Dec -04

Source: businesswire.com

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Cintas: A Strong Investment Opportunity in Workforce Solutions

Dec -04

Source: fool.com

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Cintas: Boring, Beautiful, And Finally (Sort Of) On Sale

Dec -01

Source: seekingalpha.com

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Analyzing YY Group (NASDAQ:YYGH) and Cintas (NASDAQ:CTAS)

Nov -30

Source: defenseworld.net

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Best Dividend Aristocrats For December 2025

Nov -29

Source: seekingalpha.com

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Bahl & Gaynor Inc. Has $174.87 Million Position in Cintas Corporation $CTAS

Nov -22

Source: defenseworld.net

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AXQ Capital LP Boosts Holdings in Cintas Corporation $CTAS

Nov -22

Source: defenseworld.net

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These 'Boring' Stocks Have Outperformed Nicely

Nov -21

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.10%)

6. Segments

Uniform Rental and Facility Services

Expected Growth: 7.5%

This segment is likely to grow slightly above the global average due to its core nature and the consistent demand for its services, driven by the ongoing need for businesses to maintain professional attire and hygiene standards.

First Aid and Safety Services

Expected Growth: 8.0%

The growth in this segment is expected to be higher than the global average due to the increasing emphasis on workplace safety and the regulatory environment driving demand for first aid and safety services and products.

All Other

Expected Growth: 6.5%

The 'All Other' segment is expected to grow at a rate slightly below the global average. This is because it encompasses a variety of services, some of which may not be as directly related to the core business or may face different market conditions, potentially dampening overall growth.

7. Detailed Products

Uniform Rental and Facility Services

Cintas provides uniform rental and facility services to businesses, including uniform cleaning and maintenance, as well as restroom and facility supplies.

First Aid and Safety Products

Cintas offers a range of first aid and safety products, including first aid kits, safety glasses, and fire extinguishers.

Fire Protection and Electronic Security Services

Cintas provides fire protection and electronic security services, including fire alarm and suppression system installation and monitoring.

Document Management Services

Cintas offers document management services, including document shredding, storage, and imaging.

Facility Services

Cintas provides facility services, including janitorial and sanitation supplies, as well as tile and carpet cleaning.

8. Cintas Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Cintas Corporation operates in a niche market, providing specialized products and services. While there are substitutes available, they are not easily accessible, and customers are loyal to the brand.

Bargaining Power Of Customers

Cintas Corporation has a large customer base, but individual customers do not have significant bargaining power. The company's products and services are essential to its customers, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Cintas Corporation has a diverse supplier base, and no single supplier has significant bargaining power. However, the company is dependent on a few key suppliers for certain materials, which could impact its operations.

Threat Of New Entrants

The barriers to entry in the industry are relatively high, and new entrants would need significant capital and expertise to compete with Cintas Corporation. The company's established brand and customer relationships also make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The industry is highly competitive, with several established players competing for market share. Cintas Corporation faces intense competition from rivals, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.85%
Debt Cost 5.24%
Equity Weight 59.15%
Equity Cost 10.26%
WACC 8.21%
Leverage 69.06%

11. Quality Control: Cintas Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TransDigm Group

A-Score: 6.4/10

Value: 3.0

Growth: 7.9

Quality: 6.7

Yield: 9.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
PACCAR

A-Score: 6.0/10

Value: 3.7

Growth: 6.7

Quality: 6.1

Yield: 8.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Paychex

A-Score: 5.8/10

Value: 1.8

Growth: 5.8

Quality: 9.0

Yield: 6.0

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Cintas

A-Score: 5.2/10

Value: 1.0

Growth: 7.1

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Global Payments

A-Score: 5.0/10

Value: 6.8

Growth: 7.1

Quality: 5.9

Yield: 2.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Thomson Reuters

A-Score: 4.7/10

Value: 1.2

Growth: 4.7

Quality: 8.2

Yield: 2.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

186.75$

Current Price

186.75$

Potential

-0.00%

Expected Cash-Flows