Cintas CorporationCTASNASDAQ
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Executive Summary
Latest Data: May 2025Industrials•Specialty Business Services
$77.7BLarge Cap
A large-scale business, with solid profitability priced at a premium.
Key Investment Themes
Mature business (8% growth)
Solid 18% profitability
Premium valuation (40.9x P/E)
Business Narrative
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.
IndustrialsSpecialty Business Services
Mature & Stable
high confidence
Revenue Mix
Single segment business
Bull Case
- +Solid profitability with room for margin expansion
- +Strong cash generation funds reinvestment and shareholder returns
Bear Case
- -Premium valuation leaves limited margin of safety
Company at a Glance
Business Performance
Key Highlights
Positive Signals
- Healthy profit margins demonstrating pricing power
- Strong liquidity position with ample current assets
- Excellent return on equity above 20%
Watch Areas
- Premium valuation requires continued strong execution
Financial Health
Liquidity
Strong
Current Ratio2.09
≥2.0 = Excellent
Cash & Equivalents$264M
Leverage
Strong
Debt / Equity0.57
<1.0 = Low leverage
Interest Coverage23.34x
≥5x = Comfortable
Efficiency
Strong
Return on Equity38.7%
≥15% = Excellent
Return on Capital22.9%
≥15% = Excellent
Valuation Assessment
Market Cap
$77.7B
Large Cap
P/E (TTM)
40.9x
Elevated
vs 5Y avg: 39.3x (+4%)
P/S (TTM)
7.2x
In-line
vs 5Y avg: 6.4x (+13%)
EV/EBITDA
28.2x
Elevated
vs 5Y avg: 25.6x
(+10%)
(+10%)
P/E Historical Range (5Y)
Min: 33.3xAvg: 39.3xNow: 40.9xMax: 50.4x
P/S Historical Range (5Y)
Min: 5.2xAvg: 6.4xNow: 7.2xMax: 8.8x
EV/EBITDA Historical Range (5Y)
Min: 22.1xAvg: 25.6xNow: 28.2xMax: 32.8x
Valuation Corridor
EXPENSIVE
PEG Ratio
2.50
P/E 40.9x / Growth 16.4% = Expensive
FCF Yield
2.3%
vs Cost of Capital ~8.0% = Moderate
P/E Corridor (5Y)40.9x
33.3xFair: 33.3x-46.9x50.4x
P/S Corridor (5Y)7.2x
5.2xFair: 5.2x-8.0x8.8x
EV/EBITDA Corridor (5Y)28.2x
22.1xFair: 22.1x-30.4x32.8x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | May 21 | May 22 | May 23 | May 24 | May 25 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 46.6% | 46.2%↓0.7% | 47.3%↑2.4% | 48.8%↑3.2% | 50.0%↑2.5% |
| Operating Margin | 19.5% | 20.2%↑3.8% | 20.4%↑1.2% | 21.6%↑5.4% | 22.8%↑5.9% |
| Net Margin | 15.6% | 15.7%↑0.8% | 15.3%↓2.8% | 16.4%↑7.1% | 17.5%↑7.0% |
| Earnings Yield | - | - | - | - | - |
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