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what it is
Cintas rents uniforms, cleans workplaces, and sells safety gear to more than 1 million businesses.
how it gets paid
Last year Cintas made $10.3B in revenue. Uniform Rental & Facility Services was the main engine at $7.9B, or 77% of sales.
why it's growing
Revenue grew 7.7% last year. 50.4% gross margin is the tell. That is why a uniform company can look more like a profit machine than a service contractor.
what just happened
Cintas beat by 0.83%, with $1.21 in EPS versus $1.20 expected.
At a glance
A balance sheet — strong enough to weather a downturn
100/100 earnings predictability — you can trust these numbers
43.4x trailing p/e — you're paying up for this one
1.1% dividend yield — cash in your pocket every quarter
44.0% return on capital — every dollar works hard here
xvary composite: 82/100 — above average
What they do
Cintas rents uniforms, cleans workplaces, and sells safety gear to more than 1 million businesses.
You do not switch uniform vendors because the new one has a nicer logo. Cintas serves more than 1 million businesses, and 77% of revenue comes from uniform rental and facility services. Route density (more stops per truck route, so delivery costs less) lets it spread costs across your town while making the relationship hard to break.
How they make money
$10.3B
annual revenue · their business grew +7.7% last year
Uniform Rental & Facility Services
$7.9B
First Aid & Safety Services
$1.2B
Other Businesses
$1.1B
The products that matter
rents uniforms and services facilities
Uniform Rental & Facility Services
$7.9B · 77% of revenue
this is the core engine: $7.9B in sales and 77% of company revenue tied to route-based pickup, cleaning, and resupply work that customers rarely switch overnight.
77% of revenue
stocks safety and first aid
First Aid & Safety Services
$1.2B · 12% of revenue
at $1.2B, this segment is only 12% of revenue, but it gives Cintas another recurring touchpoint inside customer sites and grew 9% alongside the core business.
12% of revenue
runs smaller service lines
Other Businesses
$1.1B · 11% of revenue
the remaining $1.1B, or 11% of revenue, rounds out the offering and helps Cintas sell more than one service into the same customer account.
11% of revenue
Key numbers
$242
VL target
That is 27% above $190.91, so the market still leaves room for more upside if execution holds.
29.0%
operating margin
Nearly 3 of every 10 sales dollars becomes operating profit.
44.0%
return on capital
Cintas gets 44 cents of operating profit for every dollar tied up in the business.
1.1%
dividend yield
The payout is small, so this is a quality growth name, not an income stock.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 95 / 100
- long-term debt $2.4B (3% of capital)
- net profit margin 19.6% — keeps 20 cents of every dollar in revenue
- return on equity 84% — $0.84 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in CTAS 3 years ago → it's now worth $17,630.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Cintas beat by 0.83%, with $1.21 in EPS versus $1.20 expected.
Revenue came in at $2.8B, and gross margin hit 50.4%. That mix says pricing and cost control are doing the work, not just bigger volume.
$2.8B
revenue
$1.21
eps
50.4%
gross margin
the number that mattered
50.4% gross margin is the tell. That is why a uniform company can look more like a profit machine than a service contractor.
-
cintas has resumed its pursuit of unifirst.an earlier effort to acquire the rival uniform-services provider for $275 a share in cash (about $5.2 billion) was rebuffed early last year. in december, though, the company resubmitted the offer to unifirst, whose share price had consistently traded below $200 before this latest approach. management expects that the combination would unlock the opportunity for significant cost. too, the company appears confident of overcoming any regulatory hurdles, as the offer includes a $350-million termination fee to unifirst in the event the merger is blocked on anti-trust grounds.
-
revenues continue to advance at a steady clip.
-
the top line rose another 9% vs. prior year in the november quarter, including organic growth (excludes effects of acquisitions, currency fluctuations, etc.) of 8.6%.
-
softness in the u.s. labor market — the unemployment rate hit a four-year high in november — does raise concerns about the prospect of fewer uniformed employees at existing customers.
-
as it stands, though, we continue to look for revenues to rise a similar rate moving forward.most of the company’s new business comes from signing up first-time users of uniform rental or similar programs, such as stocking first aid or restroom supplies, and those opportunities seem likely to persist well into the future. earnings are apt to increase at a low-double-digit pace in fiscal 2026 and 2027. (year ends on may 31st.) along with the expanding revenue base, profits have been getting a boost from wider margins.
source: company earnings report, 2026
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What could go wrong
the top threat is antitrust pushback on the $5.2B UniFirst bid, with slower hiring at customer worksites close behind.
high
regulators could block the UniFirst deal
Cintas is offering $275 a share, or about $5.2B, and has agreed to a $350M termination fee if antitrust regulators stop the merger. That is a concrete cost, not a hypothetical footnote.
a failed deal means no acquisition upside and exposes Cintas to a potential $350M breakup payment
med
fewer employees means fewer uniforms on route
Management has already flagged softness in the U.S. labor market. With 77% of revenue, or about $7.9B, tied to Uniform Rental & Facility Services, weaker customer headcount hits the core engine.
this risk sits directly on the biggest segment, not on a side business
med
the valuation leaves little room for a boring quarter
CTAS trades at 43.4x trailing earnings. The 3–5 year low target is $200 versus a current price near $191, while the midpoint is $242. You're not buying a turnaround discount here.
if growth slips from the recent 9% pace or margins soften from 50.4% gross margin, multiple compression can do the rest
between the $350M merger break fee, a $7.9B core segment tied to employment levels, and a 43.4x earnings multiple, the setup is strong business / thin margin for error.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
the UniFirst bid is now part of the thesis
$5.2B in cash plus a $350M termination fee means the merger outcome can move the story from here.
segment mix
77% of revenue still comes from the core route business
Uniform Rental & Facility Services drives about $7.9B of the $10.3B total. If that mix changes, something important changed.
earnings
watch whether 9% growth stays near 9%
Latest quarterly revenue was $2.8B and organic growth was 8.6%. A premium multiple needs that steadiness to keep showing up.
trend
customer employment levels matter more than headlines suggest
A softer labor market can mean fewer uniformed employees at existing customers. For CTAS, that is a demand variable hiding in plain sight.
Analyst rankings
short-term outlook
top 20%
outlook rank 2 — analysts expect above-average price performance in the year ahead. in human-speak: they still trust the business more than they fear the valuation.
risk profile
safer than most
risk rank 2 — safer than roughly 80% of stocks. This is a defensive operating profile, not a balance-sheet dare.
chart momentum
below average
momentum rank 4 — the business looks cleaner than the chart right now. Welcome to buying quality after a strong run.
earnings predictability
100 / 100
few public companies score this cleanly. If you like consistency, this is what consistency looks like.
source: institutional data
Institutional activity
598 buyers vs. 721 sellers in 3q2025. total institutional holdings: 0.3B shares.
source: institutional data
Price targets
3-5 year target range
$167
$316
$191
current price
$242
target midpoint · +27% from current · 3-5yr high: $270 (+40% · 10% ann'l return)
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