Business Strategy and Outlook| Joshua Aguilar |
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.