Cintas Corporation’s Stock Surges Ahead of Industry Standards
Financial Performance Highlights Cintas’ Dominance in Uniform Services
Cincinnati, Ohio-based Cintas Corporation (CTAS) specializes in corporate identity uniforms and related business services mainly across the United States, Canada, and Latin America. With a market capitalization of $89.4 billion, Cintas operates through segments such as Uniform Rental and Facility Services, First Aid and Safety Services, and Others.
In the past year, Cintas has significantly outpaced the broader market. CTAS stock has surged 48.6% year-to-date and 61.4% over the last 52 weeks, exceeding the S&P 500 Index’s ($SPX) gains of 25.5% in 2024 and 31.3% over the past year.
Focusing more narrowly, Cintas also exceeded the Industrial Select Sector SPDR Fund’s (XLI) YTD gains of 25.9% and 35% returns over the past year.
Following the release of impressive Q1 earnings on September 25, CTAS stock increased by 1.2%. Cintas has demonstrated strong revenue growth, margin improvements, and robust cash generation. The company reported a 6.8% year-over-year increase in total revenues, reaching $2.5 billion, surpassing analysts’ expectations. Additionally, operational effectiveness and high customer engagement propelled organic revenue growth by 8%. The company’s earnings per share (EPS) also rose by 18.3% year-over-year to $1.10, significantly exceeding forecasts by 10%.
Due to solid quarterly performance and ongoing momentum, Cintas raised its full-year revenue guidance to between $10.2 billion and $10.3 billion. The EPS guidance has also been increased to a range of $4.17 to $4.25, boosting investor confidence.
For the ongoing fiscal year ending in May 2025, analysts anticipate an 11.6% increase in EPS to $4.23. Notably, Cintas has consistently exceeded analysts’ earnings estimates in the last four quarters.
CTAS stock enjoys a consensus “Moderate Buy” rating from analysts. Among the 18 analysts following the stock, seven recommend a “Strong Buy,” nine advise “Hold,” and two suggest a “Strong Sell.”
This rating configuration reveals a slightly less bullish outlook compared to three months ago when eight analysts advised “Strong Buy” ratings.
On September 26, Jefferies analyst Stephanie Moore maintained a “Hold” rating on CTAS, setting a price target of $200.
Currently, CTAS is trading above its average price target of $205.91. The highest target on the Street is $245, indicating a mere 9.4% premium over current prices.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
