Cintas Corp (CTAS) stock analysis

P/E above its 5-year median

Cintas's P/E of 44.8 is above its own 5-year median of 41.3.

P/E above the industry

Cintas's P/E of 44.8 is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 21.3.

EV/EBITDA below its 5-year median

Cintas's EV/EBITDA of 28.7 is below its 5-year median of 29.6.

P/B above the industry

Cintas's price-to-book of 17.34 is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 2.23.

Trading above fair value

The share price of $227.26 is above our fair value estimate of $157.56.

Margin of safety under 20%

The price is 44.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 14.7% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 11.3% over the last twelve months, against a 5-year average of 12.5% a year.

Growing faster than the industry

Revenue grew 9.5% over the last twelve months; the Apparel and Other Finished Products Made from Fabrics and Similar Materials median is 3.9%.

Guidance raised

Cintas raised its full fiscal year annual revenue outlook on Sep 23, 2026.

Gross margin improving

Gross margin was 51.0% over the last twelve months, against 50.1% a year earlier.

Return on equity over 15%

Return on equity was 41.4% over the last twelve months and averaged 38.5% over five years.

Return on capital over 10%

Return on invested capital was 29.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Cintas's return on equity of 41.4% is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 9.5%.

Earnings grew over 5 years

Net income grew 12.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 17.8% over the last twelve months, against a 5-year average of 16.5%.

Net margin above the industry

Cintas's net margin of 17.8% is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 3.9%.

High debt

Debt is 46.7% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 68.9% five years ago to 46.7%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 100% of total debt.

Interest well covered

Operating income covers interest expense 25.3 times.

Short-term assets cover short-term debts

Current assets are 1.45 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 13.76; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Cintas paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cintas yields 0.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 35.2% of net income.

Covered by free cash flow

Dividends take 35.6% of free cash flow.