Company Reports

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 consistently launches new product lines, emphasizes cross-selling to existing customers, and invests in IT infrastructure to enhance customer retention and operational efficiency. With a market penetration rate of less than 20%, the remaining unvended market remains sizable.

Wide-moat Cintas reported solid fiscal 2024 third-quarter results, with growth in all three business segments. We will be incorporating results into our model, but we expect to raise our fair value estimate by 5%-9% due to lifting our top-line and margin forecasts and our significant confidence in the firm’s execution. However, we still think the stock is overvalued relative to our long-term free cash flow forecasts.

Wide-moat Cintas reported solid fiscal 2024 second-quarter results, with growth in all three business segments. We've raised our discounted cash flow-derived fair value estimate by 12%, to $460 per share from $410, as we give the firm more credit for strong execution on longer-term revenue growth and margin gains. We have significant confidence in the firm’s sales execution, along with its ability to consistently boost margins via greater route density and operational efficiency, some of which is IT-driven. However, we still think the stock is overvalued, as it currently trades in 2-star territory.

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.

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 singular customer making up for more than one percent of total revenue. Despite its already impressive position, we expect Cintas to post healthy growth over the long run. The firm constantly considers 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 client wins. With a market penetration rate of less than 20%, the remaining unvended market remains sizable.

Wide-moat Cintas reported strong 2024 first-quarter results with growth in all three business segments and in line with our annual forecast. We raise our fair value estimate by nearly 3% to $410 from $400, driven primarily by time value of money and our confidence in the firm’s growth strategy. We're optimistic given Cintas' long-term focus on margin expansion, new customer acquisitions, and strategic technological investments. However, we still think the stock is overvalued, as it currently trades in 2-star territory.

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 singular customer making up for more than one percent of total revenue. Despite its already impressive position, we expect Cintas will grow over the next 10 years. The firm constantly considers new product lines while emphasizing cross-selling to its existing customers and investing in technologies to enhance customer retention and operational efficiency. About 60% of its annual sales growth derives from new client wins. With a current market penetration rate at below 20%, the remaining unvended market remains sizable.

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 singular customer making up for more than one percent of total revenue. Despite its already impressive position, we expect Cintas will grow over the next 10 years. The firm constantly considers new product lines while emphasizing cross-selling to its existing customers and investing in technologies to enhance customer retention and operational efficiency. About 60% of its annual sales growth derives from new client wins. With a current market penetration rate at below 20%, the remaining unvended market remains sizable.

Wide-moat-rated Cintas reported strong fiscal 2023 fourth-quarter results. We raise our fair value estimate to $400 from $384, driven by the time value of money and the firm’s above-expectations full-year performance. We believe it remains well-positioned to navigate tough macroeconomic environments, and we are optimistic about its long-term strategic focus on margin expansion and technology investments. That said, we still think the stock remains overvalued.

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 singular customer accounting for more than one percent of total revenue. Despite its already impressive position, we expect Cintas will grow over the next 10 years. The firm constantly considers new product lines while emphasizing cross-selling to its existing customers and investing in technologies to enhance customer retention and operational efficiency. About 60% of its annual sales growth derives from new client wins. With a current market penetration rate at below 20%, the remaining unvended market remains sizable.

We raise wide-moat-rated Cintas’ fair value estimate to $384 from $381, driven by the time value of money. We remain more optimistic about Cintas’ successful long-term sales strategy; however, we still think the stock remains materially overvalued.

Cintas is the dominant provider in the $20 billion U.S. uniform rental/sales and related ancillary services industry, of which 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 singular customer accounting for greater than one percent of total revenue. Despite its already impressive position, we expect Cintas will grow over the next 10 years. The firm constantly considers new product lines while emphasizing cross-selling to its existing customers and investing in technologies to enhance customer retention and operational efficiency. About 60% of its annual sales growth derives from new client wins. With a current market penetration rate at below 20%, the remaining unvended market remains sizable.

Cintas is the dominant provider in the $16 billion U.S. uniform rental/sales and related ancillary services industry. It enjoys a roughly 43% market share, and no singular end market constitutes a significant portion of total revenue. Despite its already impressive position, we expect Cintas will grow over the next 10 years. The firm constantly considers new product lines while emphasizing cross-selling to its existing customers and investing in technologies to enhance customer retention and operational efficiency. About 60% of its annual sales growth derives from new client wins. At $4 billion-$5 billion, the remaining unvended market remains sizable; the G&K acquisition added 170,000 uniform rental clients to Cintas' book of business.

Wide-moat-rated Cintas reported strong fiscal 2023 third-quarter results. Guidance also implies solid fourth-quarter performance. Management increased its annual revenue and diluted EPS guides to $8.77 billion and $12.80 at each midpoint, respectively, up roughly 1% from prior guidance. After taking a fresh look at our long-term assumptions, we intend to sizably increase our $299 fair value estimate. Despite this planned change, we still think the stock remains overvalued at its $463 price.

Cintas is the dominant provider in the $16 billion U.S. uniform rental/sales and related ancillary services industry. It enjoys a roughly 43% market share, and no singular end market constitutes a significant portion of total revenue. Despite its already impressive position, we expect Cintas will grow over the next 10 years. The firm constantly considers new product lines while emphasizing cross-selling to its existing customers and investing in technologies to enhance customer retention and operational efficiency. About 60% of its annual sales growth derives from new client wins. At $4 billion-$5 billion, the remaining unvended market remains sizable; the G&K acquisition added 170,000 uniform rental clients to Cintas' book of business.

Wide-moat-rated Cintas reported strong fiscal 2023 second-quarter results. We plan to maintain our $292 fair value estimate, after increasing it during last quarter’s earnings by roughly 3% from $284. Today, management increased its revenue and EPS guides to about $8.71 billion and $12.65 at each respective midpoint, or up roughly 1% from prior guidance. Nonetheless, our long-term view remains unchanged in that we think the stock remains meaningfully overvalued.

Cintas is the dominant provider in the $16 billion U.S. uniform rental/sales and related ancillary services industry. It enjoys a roughly 43% market share, and no singular end market constitutes a significant portion of total revenue. Despite its already impressive position, we expect Cintas will grow over the next 10 years. The firm constantly considers new product lines while emphasizing cross-selling to its existing customers and investing in technologies to enhance customer retention and operational efficiency. About 60% of its annual sales growth derives from new client wins. At $4 billion-$5 billion, the remaining unvended market remains sizable; the G&K acquisition added 170,000 uniform rental clients to Cintas' book of business.

Wide-moat Cintas reported strong fiscal 2023 first-quarter results. We plan to raise our $284 fair value estimate by roughly 2%-4% to reflect full-year guidance better than the run rate previously embedded in our model, as well as the time value of money. Management lifted its revenue and earnings per share guidance to about $8.63 billion and $12.48 at their respective midpoints, or up roughly 1% and 3% from prior guidance. Nonetheless, our long-term view is unchanged. From a competitive standpoint, we believe Cintas enjoys a cost advantage over competitors thanks to its unmatched route density. But despite our positive view of the business, we think the stock remains meaningfully overvalued.

Cintas is the dominant provider in the $16 billion U.S. uniform rental/sales and related ancillary-services industry. It enjoys a roughly 43% market share, and no singular end market comprises a significant portion of total revenue. Despite its already impressive position, we expect Cintas will grow over the next 10 years. The firm constantly considers new product lines while emphasizing cross-selling to its existing customers. About 60% of its annual sales growth derives from new client wins, and at $4 billion-$5 billion, the remaining unvended market remains sizable, and the G&K acquisition added 170,000 uniform rental clients to Cintas' book of business.

Wide-moat Cintas reported fiscal 2022 fourth-quarter and full-year results that were ahead of our expectations. We raise our fair value estimate to $284 per share from $283. Our raise reflects the effects of time value of money and better-than-expected guidance for 2023, mostly offset by subdued near-term forecasts. We believe Cintas is well positioned to weather a certain level of economic downturn. Given the current level of inflation and concerns around a potential recession, we project a slowing top-line growth in year two and declining sales in year three, until revenue bounces back starting 2026 and normalizes by our midcycle.