# Cintas (CTAS.US)

Canonical: https://gigainvestors.com/s/CTAS

Analysis as of: 2026-10-16T07:27:48.252Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $213.06 per share; close as of 2026-10-15.

Estimated value: low $75.10 per share, central $109.55 per share, high $128.76 per share. Buy at or below the central value $109.55 per share. Valuation as of 2026-10-16T07:27:48.252Z; scenarios are not confidence intervals.

Expected annual return: 6.7% at the stated quote. About 6.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.15×

- FY2018: 0.15×

- FY2019: 0.16×

- FY2020: 0.16×

- FY2021: 0.19×

- FY2022: 0.20×

- FY2023: 0.20×

- FY2024: 0.22×

- FY2025: 0.23×

- FY2026: 0.23×

### moat: pass

- ROIC, median of available years: 40.8%

- ROIC, second-lowest year: 31.2%

- Typical minus recent gross margin: -3.6 pp

- Typical gross margin (annual median): 46.4%

- Recent gross margin (lower of latest and 3-year median): 50.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.9%

- ROIC including acquisitions, ten-year median: 22.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 20.9%

- FY2018: 34.5%

- FY2019: 31.2%

- FY2020: 32.9%

- FY2021: 39.9%

- FY2022: 41.6%

- FY2023: 42.8%

- FY2024: 48.0%

- FY2025: 51.4%

- FY2026: 51.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $8.4B

- Net income, five-year total: $8.0B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -5.1 pp

- Working capital / revenue, final three-year average: 13.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.13×

- FY2023: 1.06×

- FY2024: 1.02×

- FY2025: 1.05×

- FY2026: 1.06×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 31.2% vs 51.4%

- Per-share earnings: 1.58 to 4.42 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.8%

- Ordinary dilution, 5-year annual growth: -1.2%

- Market cap gain: $55B

- Cumulative retained earnings: $7.9B

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: -1.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 13.7%

- Per-share value change: $2.84

- Per-share value, starting three-year median: $1.58

- Per-share value, ending three-year median: $4.42

- Buybacks concentrated in cheaper years (correlation): 0.08

- Average buyback yield: 1.7%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.5B

- Cumulative net income, 10 years: $12B

- ROIC, first three-year median: 31.2%

- ROIC, last three-year median: 51.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.11

- FY2018: $1.92

- FY2019: $2.02

- FY2020: $2.05

- FY2021: $2.58

- FY2022: $2.93

- FY2023: $3.26

- FY2024: $3.80

- FY2025: $4.42

- FY2026: $4.92

### accounting: pass

- Sloan accruals: -2.6%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.14×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.75×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -4.0%

- FY2018: -1.7%

- FY2019: -2.4%

- FY2020: -5.2%

- FY2021: -2.9%

- FY2022: -3.6%

- FY2023: -2.8%

- FY2024: -5.4%

- FY2025: -3.6%

- FY2026: -2.6%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 15.8% a year for ten years · sales +8.9%

Story as of 2026-10-16T09:58:35.220Z; price observation 2026-10-15.

Price needs cash profits to grow 15.8% a year for ten years

- 2025-09-24: Cintas Trims FY26 Outlook - Update ([nasdaq.com](https://www.nasdaq.com/articles/cintas-trims-fy26-outlook-update))

- 2026-07-16: Is Cintas (CTAS) Fully Valued As Strong Earnings And 2027 Guidance Lift Sentiment? ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/cintas-ctas-fully-valued-strong-081155692.html))

### Sales · FY2025–2026

sales +8.9%; source https://www.sec.gov/Archives/edgar/data/723254/000072325426000028/ctas-20260531.htm; observed 2026-07-29.

- FY2017: $5.3B 

- FY2018: $6.5B 

- FY2019: $6.9B 

- FY2020: $7.1B 

- FY2021: $7.1B 

- FY2022: $7.9B 

- FY2023: $8.8B 

- FY2024: $9.6B 

- FY2025: $10B 

- FY2026: $11B 

### Gross margin · FY2026

gross margin 50.5%; source https://www.sec.gov/Archives/edgar/data/723254/000072325426000028/ctas-20260531.htm; observed 2026-07-29.

- FY2017: 44.7% 

- FY2018: 44.9% 

- FY2019: 45.4% 

- FY2020: 45.6% 

- FY2021: 46.6% 

- FY2022: 46.2% 

- FY2023: 47.3% 

- FY2024: 48.8% 

- FY2025: 50.0% 

- FY2026: 50.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty business services; annual sales are USD 11.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/723254/000072325426000028/ctas-20260531.htm (filed 2026-07-29); FY2026: revenue 11264761000; grossProfit 5692657000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CTAS.US: Cintas Corporation provides corporate identity uniforms and other garments in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company offers rental and servicing of uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items. It also provides restroom cleaning services and supplies; and sells uniforms from catalogs. In addition, the company offers first aid and safety products and services; workplace water services; and fire protection products and services. Further, it provides automated external defibrillators; eye-wash stations; safety training; fire extinguishers; sprinkler systems; and alarm services. The company sells its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. It serves gaming, hospitality, healthcare, automotive, government, education, pharmaceutical, manufacturing, skilled trades, and food processing industries. The company was founded in 1929 and is based in Cincinnati, Ohio.

### Why customers stay

Margins ranged from 48.8% to 50.5% during 2024–26; it earns 40.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2024: grossProfit / revenue = 48.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2025: grossProfit / revenue = 50%.

- Source: https://www.sec.gov/Archives/edgar/data/723254/000072325426000028/ctas-20260531.htm (filed 2026-07-29); FY2026: grossProfit / revenue = 50.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); 10-year return on capital observations [[2017,0.20901029843822952],[2018,0.34501279290883113],[2019,0.3115127847968034],[2020,0.32914436507052436],[2021,0.398741330579323],[2022,0.41639553431896925],[2023,0.42815913121154464],[2024,0.48024256910009827],[2025,0.5139758679328879],[2026,0.518548950050944]]; median 0.4075684324491461. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

"Revenue improved from increases in sales representative productivity and price increases." (SEC filing, Jul 2026)

- Source: https://www.sec.gov/Archives/edgar/data/723254/000072325426000028/ctas-20260531.htm (filed 2026-07-29); Revenue improved from increases in sales representative productivity and price increases.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 952.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2017: growth capex 76722000; upkeep 196595000; owner earnings 480708000. Growth capex / owner earnings = 0.15960208692179037.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2018: growth capex 0; upkeep 271699000; owner earnings 850303000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2019: growth capex 0; upkeep 276719000; owner earnings 968355000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2020: growth capex 0; upkeep 230289000; owner earnings 1024801000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2021: growth capex 0; upkeep 143470000; owner earnings 1355449000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2022: growth capex 0; upkeep 240672000; owner earnings 1394786000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2023: growth capex 0; upkeep 331109000; owner earnings 1426063000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2024: growth capex 0; upkeep 409469000; owner earnings 1604507000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); FY2025: growth capex 0; upkeep 408884000; owner earnings 1897580000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/723254/000072325426000028/ctas-20260531.htm (filed 2026-07-29); FY2026: growth capex 0; upkeep 395105000; owner earnings 2117709000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); Dividend observations: [[2017,142433000],[2018,175589000],[2019,220764000],[2020,267956000],[2021,451327000],[2022,375119000],[2023,449917000],[2024,530909000],[2025,611627000],[2026,701485000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/723254/000072325426000028/ctas-20260531.htm (filed 2026-07-29); FY2026: cash repurchases 952104000 USD.

### Are managers owners

Insiders own 14.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CTAS.US SharesStats.PercentInsiders = 14.549000000000001 percentage points; cache date 2026-10-16.

### What could break it

"Financial Risks" (SEC filing, Jul 2026)

- Source: https://www.sec.gov/Archives/edgar/data/723254/000072325426000028/ctas-20260531.htm (filed 2026-07-29); Financial Risks

### What the price says

The price assumes cash profits grow 15.8% yearly over ten years; actual growth was 13%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-07-29); Ten-year compound average after fade. Initial solved rate 0.29277888800158813. Price 213.06; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.529952455297803 → FY2026 5.213502315378991. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $26.67 per share

- 2016-11: $28.65 per share

- 2016-12: $28.89 per share

- 2017-01: $29.03 per share

- 2017-02: $29.50 per share

- 2017-03: $31.64 per share

- 2017-04: $30.62 per share

- 2017-05: $31.47 per share

- 2017-06: $31.51 per share

- 2017-07: $33.71 per share

- 2017-08: $33.75 per share

- 2017-09: $36.07 per share

- 2017-10: $37.26 per share

- 2017-11: $39.36 per share

- 2017-12: $38.96 per share

- 2018-01: $42.11 per share

- 2018-02: $42.67 per share

- 2018-03: $42.65 per share

- 2018-04: $42.58 per share

- 2018-05: $45.56 per share

- 2018-06: $46.27 per share

- 2018-07: $51.12 per share

- 2018-08: $53.34 per share

- 2018-09: $49.45 per share

- 2018-10: $45.47 per share

- 2018-11: $46.85 per share

- 2018-12: $42.00 per share

- 2019-01: $46.88 per share

- 2019-02: $51.65 per share

- 2019-03: $50.53 per share

- 2019-04: $54.29 per share

- 2019-05: $55.46 per share

- 2019-06: $59.32 per share

- 2019-07: $65.11 per share

- 2019-08: $65.95 per share

- 2019-09: $67.03 per share

- 2019-10: $67.17 per share

- 2019-11: $64.27 per share

- 2019-12: $67.27 per share

- 2020-01: $69.74 per share

- 2020-02: $66.69 per share

- 2020-03: $43.31 per share

- 2020-04: $55.46 per share

- 2020-05: $61.99 per share

- 2020-06: $66.59 per share

- 2020-07: $75.47 per share

- 2020-08: $83.31 per share

- 2020-09: $83.21 per share

- 2020-10: $78.64 per share

- 2020-11: $88.83 per share

- 2020-12: $88.37 per share

- 2021-01: $79.53 per share

- 2021-02: $81.09 per share

- 2021-03: $85.33 per share

- 2021-04: $86.29 per share

- 2021-05: $88.39 per share

- 2021-06: $95.50 per share

- 2021-07: $98.55 per share

- 2021-08: $98.94 per share

- 2021-09: $95.17 per share

- 2021-10: $108.28 per share

- 2021-11: $105.55 per share

- 2021-12: $110.79 per share

- 2022-01: $97.88 per share

- 2022-02: $93.83 per share

- 2022-03: $106.35 per share

- 2022-04: $99.32 per share

- 2022-05: $99.58 per share

- 2022-06: $93.38 per share

- 2022-07: $106.37 per share

- 2022-08: $101.71 per share

- 2022-09: $97.05 per share

- 2022-10: $106.89 per share

- 2022-11: $115.45 per share

- 2022-12: $112.91 per share

- 2023-01: $110.94 per share

- 2023-02: $109.62 per share

- 2023-03: $115.67 per share

- 2023-04: $113.94 per share

- 2023-05: $118.04 per share

- 2023-06: $124.27 per share

- 2023-07: $125.51 per share

- 2023-08: $126.04 per share

- 2023-09: $120.25 per share

- 2023-10: $126.78 per share

- 2023-11: $138.31 per share

- 2023-12: $150.67 per share

- 2024-01: $151.14 per share

- 2024-02: $157.15 per share

- 2024-03: $171.76 per share

- 2024-04: $164.59 per share

- 2024-05: $169.49 per share

- 2024-06: $175.07 per share

- 2024-07: $190.99 per share

- 2024-08: $201.28 per share

- 2024-09: $205.88 per share

- 2024-10: $205.81 per share

- 2024-11: $225.79 per share

- 2024-12: $182.70 per share

- 2025-01: $200.57 per share

- 2025-02: $207.50 per share

- 2025-03: $205.53 per share

- 2025-04: $211.68 per share

- 2025-05: $226.50 per share

- 2025-06: $222.87 per share

- 2025-07: $222.55 per share

- 2025-08: $210.03 per share

- 2025-09: $205.26 per share

- 2025-10: $183.27 per share

- 2025-11: $186.02 per share

- 2025-12: $188.07 per share

- 2026-01: $191.39 per share

- 2026-02: $201.13 per share

- 2026-03: $169.14 per share

- 2026-04: $174.71 per share

- 2026-05: $171.26 per share

- 2026-06: $170.08 per share

- 2026-07: $204.63 per share

- 2026-08: $201.79 per share

- 2026-09: $195.06 per share

- 2026-10: $206.38 per share

## Annual estimated value (USD per share)

- FY2017: low $13.45 per share, central $16.65 per share, high $19.40 per share

- FY2018: low $16.25 per share, central $20.29 per share, high $23.67 per share

- FY2019: low $25.61 per share, central $33.24 per share, high $38.87 per share

- FY2020: low $28.70 per share, central $38.01 per share, high $44.48 per share

- FY2021: low $29.96 per share, central $39.18 per share, high $45.71 per share

- FY2022: low $39.08 per share, central $57.01 per share, high $67.01 per share

- FY2023: low $50.08 per share, central $73.05 per share, high $85.86 per share

- FY2024: low $56.71 per share, central $82.56 per share, high $96.98 per share

- FY2025: low $65.13 per share, central $94.94 per share, high $111.57 per share

- FY2026: low $71.67 per share, central $104.47 per share, high $122.77 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/723254/000072325426000028/ctas-20260531.htm); period 2026-05-31, filed 2026-07-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.