Cintas Continues to Drive Solid Growth and Remains Well Positioned in the Industry

Cintas is the dominant provider in the $20 billion U.S. uniform rental/sales and related ancillary services industry. It enjoys a roughly 31% market share. It has a diversified customer base of over 1 million large corporations and small and midsize businesses across North America, with no single customer making up more than 1% of total revenue. Despite its already impressive position, we expect Cintas to post healthy growth over the long run. The firm constantly launches new product lines while emphasizing cross-selling to its existing customers and investing in IT infrastructure to enhance customer retention and operational efficiency. About 60% of its annual sales growth derives from new customer wins. With a market penetration rate of less than 20%, the remaining unvended market remains sizable.