tiprankstipranks
Trending News
More News >
Cintas Corp (CTAS)
NASDAQ:CTAS
Advertisement

Cintas (CTAS) AI Stock Analysis

Compare
2,265 Followers

Top Page

CTAS

Cintas

(NASDAQ:CTAS)

Select Model
Select Model
Select Model
Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
$202.00
▲(10.22% Upside)
Cintas's overall stock score is driven by strong financial performance and positive earnings call outcomes, highlighting revenue growth and increased guidance. However, bearish technical indicators and high valuation metrics temper the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.
Cash Flow Generation
Robust cash flow generation supports financial flexibility, allowing Cintas to invest in growth opportunities and manage debt effectively.
Dividend Growth
Consistent dividend increases reflect strong cash flow and management's commitment to returning value to shareholders, enhancing investor confidence.
Negative Factors
Uniform Direct Sale Decline
Decline in Uniform Direct Sale may indicate competitive pressures or market saturation, potentially impacting revenue diversification.
Higher Tax Rate
An increased tax rate reduces net income, potentially impacting profitability and cash available for reinvestment or shareholder returns.
SAP Implementation Costs
Implementation costs can pressure margins, affecting short-term profitability and requiring careful management to realize long-term efficiency gains.

Cintas (CTAS) vs. SPDR S&P 500 ETF (SPY)

Cintas Business Overview & Revenue Model

Company DescriptionCintas Corporation (CTAS) is a leading provider of corporate identity uniform programs and related services, operating primarily in the uniform rental and facility services sectors. The company offers a wide range of products and services including uniforms, mats, towels, restroom supplies, first aid and safety products, as well as fire protection services. With a focus on enhancing workplace safety and image, Cintas serves a diverse clientele across various industries, including healthcare, hospitality, and manufacturing.
How the Company Makes MoneyCintas generates revenue primarily through its uniform rental and facility services segments. The company's revenue model is based on long-term contracts that provide recurring income streams from uniform rental services, maintenance, and cleaning. Key revenue streams include the sale and rental of uniforms, mats, and other facility service products, as well as the provision of first aid and safety products. Additionally, Cintas benefits from partnerships with businesses that require consistent and compliant uniform solutions. The company's focus on customer retention and service quality contributes significantly to its earnings, as it maintains a strong client base that relies on its comprehensive service offerings.

Cintas Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Breaks down sales figures for each business unit, showing which areas contribute most to total revenue and indicating potential growth drivers or areas needing improvement.
Chart InsightsCintas has demonstrated robust growth across its segments, with Uniform Rental and Facility Services and First Aid and Safety Services showing strong upward trends. The latest earnings call highlights a record fiscal 2025 revenue of $10.34 billion, driven by strategic investments in technology and infrastructure. Despite challenges in the Uniform Direct Sale business and pressure on the goods-producing sector, the company maintains a positive outlook for fiscal 2026, projecting continued revenue growth and margin expansion. This underscores Cintas' resilience and strategic focus on long-term value creation.
Data provided by:Main Street Data

Cintas Earnings Call Summary

Earnings Call Date:Sep 24, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Dec 17, 2025
Earnings Call Sentiment Positive
The earnings call reflected a solid performance with notable revenue and income growth, along with increased guidance and dividend. However, there were challenges in the Uniform Direct Sale segment and increased costs impacting margins in the Fire business. Overall, the positive aspects outweigh the negatives.
Q1-2026 Updates
Positive Updates
Strong Revenue Growth
First quarter total revenue grew 8.7% to $2.72 billion. The organic growth rate, adjusting for acquisitions and currency fluctuations, was 7.8%.
Increased Operating Income
Operating income grew to $617.9 million, an increase of 10.1% over the prior year.
Raised Financial Guidance
Fiscal 2026 revenue guidance raised to between $11.06 billion and $11.18 billion, with a growth rate of 7% to 8.1%. EPS guidance increased to a range of $4.74 to $4.86.
Segment Performance
First Aid and Safety Services grew by 14.1%, and Fire Protection Services grew by 10.3%.
Increased Dividend
Quarterly cash dividend increased by 15.4%, marking the 42nd consecutive year of dividend increases.
Negative Updates
Decline in Uniform Direct Sale
Uniform Direct Sale declined by 9.2%, impacting overall growth.
Higher Effective Tax Rate
Effective tax rate for the quarter increased to 17.6% from 15.8% in the previous year.
Impact of SAP Implementation Costs
SAP implementation in the Fire business contributed to a decline in gross margins.
Company Guidance
In the recent conference call, Cintas Corporation provided updated guidance for fiscal year 2026 following a strong first-quarter performance. The company reported an 8.7% increase in total revenue, reaching $2.72 billion, with an organic growth rate of 7.8%. Gross margin improved to 50.3%, a 20 basis point increase from the previous year, while operating income rose by 10.1% to $617.9 million. Diluted EPS also saw a 9.1% increase, reaching $1.20. For fiscal 2026, Cintas raised its revenue guidance to a range of $11.06 billion to $11.18 billion, representing a total growth rate of 7% to 8.1%. The company also forecasted diluted EPS to be between $4.74 and $4.86, indicating a growth rate of 7.7% to 10.5%. These projections do not assume any future acquisitions, share buybacks, or significant economic disruptions.

Cintas Financial Statement Overview

Summary
Cintas demonstrates strong financial health with consistent revenue and profit growth, efficient operations, and a solid balance sheet. Despite minor fluctuations in margins and free cash flow growth, the company's overall financial position remains robust, supporting its competitive position in the specialty business services industry.
Income Statement
85
Very Positive
Cintas has demonstrated consistent revenue growth with a TTM growth rate of 2.09%. The company maintains strong profitability with a gross profit margin of 37.15% and a net profit margin of 17.54% in the TTM. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in gross profit margin from the previous annual report suggests potential cost pressures.
Balance Sheet
78
Positive
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.56, indicating moderate leverage. The return on equity is impressive at 40.41%, reflecting strong profitability. The equity ratio of 48.34% suggests a balanced capital structure. However, the slight increase in total debt warrants monitoring.
Cash Flow
80
Positive
Cintas exhibits robust cash flow generation with an operating cash flow to net income ratio of 1.40 and a free cash flow to net income ratio of 0.80. Despite a slight decline in free cash flow growth in the TTM, the company maintains strong cash flow coverage, supporting its financial flexibility.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue10.56B10.34B9.60B8.82B7.85B7.12B
Gross Profit5.29B5.17B4.69B4.17B3.63B3.31B
EBITDA2.95B2.86B2.52B2.22B1.99B1.77B
Net Income1.85B1.81B1.57B1.35B1.24B1.11B
Balance Sheet
Total Assets9.84B9.83B9.48B8.83B8.43B8.56B
Cash, Cash Equivalents and Short-Term Investments138.14M263.97M342.01M124.15M90.47M493.64M
Total Debt2.68B2.65B2.67B2.67B2.97B2.72B
Total Liabilities5.08B5.14B5.16B4.96B5.12B4.87B
Stockholders Equity4.76B4.68B4.32B3.86B3.31B3.69B
Cash Flow
Free Cash Flow1.70B1.76B1.67B1.27B1.30B1.22B
Operating Cash Flow2.11B2.17B2.08B1.60B1.54B1.36B
Investing Cash Flow-625.53M-623.64M-608.63M-388.67M-402.63M-137.22M
Financing Cash Flow-1.45B-1.62B-1.25B-1.17B-1.54B-879.87M

Cintas Technical Analysis

Technical Analysis Sentiment
Negative
Last Price183.27
Price Trends
50DMA
198.84
Negative
100DMA
209.43
Negative
200DMA
207.90
Negative
Market Momentum
MACD
-4.07
Positive
RSI
32.36
Neutral
STOCH
7.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTAS, the sentiment is Negative. The current price of 183.27 is below the 20-day moving average (MA) of 190.40, below the 50-day MA of 198.84, and below the 200-day MA of 207.90, indicating a bearish trend. The MACD of -4.07 indicates Positive momentum. The RSI at 32.36 is Neutral, neither overbought nor oversold. The STOCH value of 7.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTAS.

Cintas Risk Analysis

Cintas disclosed 18 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$73.65B40.7242.04%0.88%8.21%13.56%
$2.72B19.496.93%0.90%0.21%2.72%
$9.96B28.0212.00%1.11%-0.06%3.83%
$72.92B37.0321.73%1.01%1.38%-2.54%
$2.63B23.366.32%2.47%4.27%-24.06%
$10.79B15.437.44%2.01%2.89%-14.66%
$675.02M-3.36%2.67%-4.59%-125.50%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CTAS
Cintas
183.27
-22.73
-11.03%
ABM
ABM Industries
43.00
-10.01
-18.88%
ECL
Ecolab
256.40
14.35
5.93%
UNF
UniFirst
154.35
-23.88
-13.40%
ARMK
ARAMARK Holdings
37.88
0.15
0.40%
VSTS
Vestis Corporation
5.25
-7.94
-60.20%

Cintas Corporate Events

Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Cintas Shareholders Vote on Key Governance Matters
Neutral
Oct 31, 2025

On October 28, 2025, Cintas Corporation held its 2025 Annual Meeting of Shareholders, where several key matters were voted on. Shareholders elected new directors, approved executive compensation, ratified Ernst & Young LLP as the independent auditor for fiscal 2026, and rejected a proposal to allow shareholders to call special meetings. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future direction and stakeholder relations.

The most recent analyst rating on (CTAS) stock is a Buy with a $226.00 price target. To see the full list of analyst forecasts on Cintas stock, see the CTAS Stock Forecast page.

Cintas Earnings Call: Strong Growth and Optimistic Outlook
Sep 26, 2025

Cintas Corporation recently held its earnings call, revealing a generally positive sentiment with robust revenue and income growth. Despite some challenges in specific segments, the overall outlook remains optimistic, bolstered by increased guidance and dividends.

Cintas Reports Strong Q1 Earnings and Raises Guidance
Sep 25, 2025

Cintas Corporation, a leading provider of workplace products and services, reported its fiscal 2026 first-quarter earnings, showcasing robust growth and financial performance. The company, known for its uniform rental and facility services, operates in the business services sector and is a component of major stock indices such as the S&P 500 and Nasdaq-100.

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.Date of analysis: Nov 01, 2025