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Cintas
(NASDAQ:CTAS)
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Rating:77Outperform
Price Target:
$250.00
â–²(21.49% Upside)
Action:Reiterated
Date:10/07/26
CTAS scores well primarily on strong financial performance (high margins, strong cash generation, improving leverage metrics) and a very positive earnings call with raised guidance and record profitability. These are tempered by an expensive valuation (high P/E, modest yield) and currently weak-to-neutral technical momentum (negative MACD; trading below shorter-term averages), with incremental uncertainty around the pending UniFirst transaction.
Positive Factors
Recurring Service Model
Cintas operates through recurring contracts and scheduled route services spanning uniforms, facility supplies, first aid and fire protection. Customers pay for ongoing delivery, maintenance and replenishment, creating repeat revenue and durable relationships that can support visibility and efficient service economics.
Negative Factors
Moderating Revenue Growth
Revenue continues to grow, but the latest annual growth rate has slowed meaningfully from earlier periods. Moderation could reduce operating leverage and make continued margin expansion more dependent on productivity, cross-selling and successful conversion of new customers.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Service Model
Cintas operates through recurring contracts and scheduled route services spanning uniforms, facility supplies, first aid and fire protection. Customers pay for ongoing delivery, maintenance and replenishment, creating repeat revenue and durable relationships that can support visibility and efficient service economics.
Read all positive factors
Cintas Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business units, highlighting which segments are driving earnings and where there might be challenges or opportunities for growth.
Reveals profitability across different business units, highlighting which segments are driving earnings and where there might be challenges or opportunities for growth.
Data provided by:
The Fly
The FlyCintas (CTAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.42B
Dividend Yield0.85%
Average Volume (3M)1.93M
Price to Earnings (P/E)42.9
Beta (1Y)0.65
Revenue Growth9.51%
EPS Growth12.19%
CountryUS
Employees48,100
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)5.13
Shares Outstanding397,075,100
10 Day Avg. Volume1,601,583
30 Day Avg. Volume1,934,352
Financial Highlights & Ratios
PEG Ratio3.18
Price to Book (P/B)13.50
Price to Sales (P/S)6.16
P/FCF Ratio36.88
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue7.27
Enterprise Value/Gross Profit14.26
Enterprise Value/Ebitda26.12
Forecast
1Y Price Target
$225.00Price Target Upside9.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)5.54
Revenue Forecast (FY)$12.25B
Cintas Business Overview & Revenue Model
Company Description
Cintas Corporation specializes in supplying professional uniforms and a range of essential business services primarily across the United States, Canada, and Latin America. The company's operations are divided into three main divisions: Uniform Ren...
How the Company Makes Money
Cintas makes money primarily through recurring, route-based service contracts and rentals, where it delivers products to customer locations on a regular schedule and charges ongoing fees for the items and the associated service. A major revenue st...
Cintas Earnings Call Summary
Earnings Call Date:Sep 23, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 17, 2026
Earnings Call Sentiment Positive
The call was strongly positive. Cintas reported record quarterly revenue, all-time-high gross and operating margins, broad-based organic growth, double-digit EPS growth, improved guidance and robust capital returns. Management also highlighted strong customer demand, retention, cross-sell momentum and operational efficiency gains. The principal challenges were ongoing UniFirst regulatory clearances and transaction costs, higher tax and energy costs, macroeconomic variability, workday-related volatility and the need to manage future investments and Fire Protection margin variability.Positive Updates
Record Quarterly Revenue and Strong Organic Growth
First quarter total revenue grew 10.9% to $3.01 billion, marking the first time Cintas reached $3 billion of revenue in a quarter. Organic revenue growth was 8.9%.
Negative Updates
UniFirst Regulatory Clearance Remains Ongoing
The UniFirst merger remains subject to regulatory clearances in the U.S. and Canada, and the process is ongoing along with other closing conditions. The company has not yet completed the transaction.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarterly Revenue and Strong Organic Growth
First quarter total revenue grew 10.9% to $3.01 billion, marking the first time Cintas reached $3 billion of revenue in a quarter. Organic revenue growth was 8.9%.
Read all positive updates
Company Guidance
Cintas raised fiscal 2027 revenue guidance from a range of $12.10 billion to $12.25 billion to a range of $12.15 billion to $12.27 billion, a total growth rate of 7.9% to 8.9%, and raised fiscal 2027 adjusted diluted EPS from a range of $5.36 to $5.50 to a range of $5.45 to $5.54, a growth rate of 10.3% to 12.1%; the guide implies incremental margins of 32% to 34%, operating margin expansion at double-digit rates throughout, and double-digit EPS growth throughout the range. Fiscal 2027 has one more workday than fiscal 2026, with the second quarter having the same number of workdays year-over-year, the third quarter having one less workday, and the fourth quarter having one more workday; the extra workday is expected to affect annual revenue by 40 to 50 basis points, operating margin by 10 to 15 basis points and incrementals by 100 to 125 basis points. The guidance assumes no future acquisitions, a constant foreign currency exchange rate, fiscal 2027 net interest expense of approximately $103 million, a fiscal 2027 effective tax rate of 20.4% compared to 20.2% in fiscal 2026, and excludes future share buybacks, significant economic disruptions or downturns and nonrecurring transaction costs related to the UniFirst acquisition.Cintas Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
80
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.56B | 11.26B | 10.34B | 9.60B | 8.82B | 7.85B |
| Gross Profit | 5.89B | 5.69B | 5.17B | 4.69B | 4.17B | 3.63B |
| EBITDA | 3.22B | 3.12B | 2.86B | 2.52B | 2.22B | 1.99B |
| Net Income | 2.06B | 2.00B | 1.81B | 1.57B | 1.35B | 1.24B |
Balance Sheet | ||||||
| Total Assets | 10.65B | 10.53B | 9.83B | 9.48B | 8.83B | 8.43B |
| Cash, Cash Equivalents and Short-Term Investments | 243.60M | 289.02M | 263.97M | 342.01M | 124.15M | 90.47M |
| Total Debt | 2.71B | 2.71B | 2.65B | 2.67B | 2.67B | 2.97B |
| Total Liabilities | 5.45B | 5.39B | 5.14B | 5.16B | 4.96B | 5.12B |
| Stockholders Equity | 5.20B | 5.14B | 4.68B | 4.32B | 3.86B | 3.31B |
Cash Flow | ||||||
| Free Cash Flow | 2.03B | 1.88B | 1.76B | 1.67B | 1.27B | 1.30B |
| Operating Cash Flow | 2.43B | 2.28B | 2.17B | 2.08B | 1.60B | 1.54B |
| Investing Cash Flow | -569.57M | -568.43M | -623.64M | -608.63M | -388.67M | -402.63M |
| Financing Cash Flow | -1.76B | -1.68B | -1.62B | -1.25B | -1.17B | -1.54B |
Cintas Technical Analysis
Positive
205.78
Price Trends
201.79
Positive
194.33
Positive
188.59
Positive
Market Momentum
4.63
Negative
75.61
Negative
91.92
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTAS, the sentiment is Positive. The current price of 205.78 is above the 20-day moving average (MA) of 203.41, above the 50-day MA of 201.79, and above the 200-day MA of 188.59, indicating a bullish trend. The MACD of 4.63 indicates Negative momentum. The RSI at 75.61 is Negative, neither overbought nor oversold. The STOCH value of 91.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTAS.
Cintas Risk Analysis
Cintas disclosed 21 risk factors in its most recent earnings report. Cintas reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cintas Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $87.42B | 42.91 | 42.08% | 0.85% | 9.51% | 12.19% | |
69 Neutral | $3.02B | 18.81 | 9.44% | 2.22% | 6.00% | 50.32% | |
66 Neutral | $16.09B | 30.69 | 37.74% | 2.18% | 9.90% | 9.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $14.69B | 38.16 | 11.75% | 0.86% | 11.02% | 6.21% | |
57 Neutral | $10.59B | 22.30 | 5.82% | 3.02% | 2.92% | 43.13% | |
56 Neutral | $4.63B | 63.72 | 4.99% | 0.53% | 3.75% | -24.28% |
* Industrials Sector Average
CTAS
Cintas
224.04
33.61
17.65%
ABM
ABM Industries
53.88
9.59
21.65%
ROL
Rollins
35.31
-20.67
-36.92%
UNF
UniFirst
278.99
124.04
80.05%
ARMK
ARAMARK Holdings
52.52
13.05
33.06%
RTO
Rentokil Initial
22.88
-6.26
-21.49%
Cintas Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Cintas Advances UniFirst Acquisition Amid Regulatory Clearances
Positive
Oct 6, 2026
On March 10, 2026, Cintas entered into a merger agreement to acquire UniFirst through a two-step merger structure, with UniFirst ultimately becoming a wholly owned subsidiary of Cintas. The transaction is subject to antitrust and other customary a...
Executive/Board ChangesShareholder Meetings
Cintas Announces Planned Board Change as Director Departs
Neutral
Aug 27, 2026
On August 26, 2026, Cintas Corporation announced that director Melanie W. Barstad had informed the company she would not stand for re-election at its 2026 annual meeting of shareholders. Barstad is expected to continue serving on the board until t...
Business Operations and StrategyExecutive/Board Changes
Cintas Restructures Executive Leadership, Names New President
Positive
Aug 3, 2026
On July 28, 2026, Cintas Corporation announced a leadership restructuring, separating the roles of President and Chief Executive Officer and appointing current Executive Vice President and Chief Operating Officer Jim Rozakis as President and COO, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.