Cintas (CTAS)
Industrials · $88.2B market cap · SEC CIK 0000723254
ahead of 83% of the S&P 500 · #9 of 79 in Industrials
Next reports on Dec 16, 2026, with analysts expecting $1.39 in earnings per share.
52-week range $161.16 to $233.46. 4% below its 52-week high and 40% above its low.
The case for CTAS
- Earns 42% back on shareholder equity.
- Generated $1.9B of free cash flow in FY2026, 17% of revenue.
- Revenue growing 9.5% year over year.
The case against
- Expensive for its growth: 42.8× earnings, where 11% a year of growth plus a 1.0% dividend would justify about 26×.
- Priced at 7.6× sales with revenue growing only 9.5%.
- Free-cash-flow yield of 2.1% is lower than 86% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 26 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 64 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 84 |
| Momentumhow the price has behaved lately | 77 |
| Stabilityhow violently it moves, what it owes and what it pays you | 84 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +9.5% |
|---|---|
| Over 5 years | +9.6% a year |
| FY2026 revenue | $11.3B (+9%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2026 free cash flow | $1.9B |
|---|---|
| Of revenue | 17% |
| Of profit | 94% |
Profit margins
Is profitability improving? Holding steady
| Gross margin | 51% |
|---|---|
| Operating margin | 23% |
| Net margin, FY25 → FY26 → now | 17.5% → 17.8% → 17.8% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $289M |
|---|---|
| Long-term debt | $1.4B |
| Net debt | $1.1B |
| Years to repay | 0.6 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 42.8× |
|---|---|
| Fair P/E for its growth | 26× |
| P/FCF | 46.9× |
| Forward P/E | 37.9× |
| EV / EBITDA | 31.4× |
At 42.8× earnings it trades well above the 26× that 11% a year of growth plus a 1.0% dividend would justify. At 46.9× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Cintas's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $11.3B | $10.3B | $9.6B | $8.8B | $7.9B |
| Change on the year | +9% | +8% | +9% | +12% | — |
| Free cash flow | |||||
| Free cash flow | $1.9B | $1.8B | $1.7B | $1.3B | $1.3B |
| Of revenue | 17% | 17% | 17% | 14% | 17% |
| Profit margins | |||||
| Gross margin | 50.7% | 50.0% | 48.8% | 47.3% | 46.2% |
| Operating margin | 23.1% | 22.8% | 21.6% | 20.4% | 20.2% |
| Net margin | 17.8% | 17.5% | 16.4% | 15.3% | 15.7% |
| Debt vs. cash | |||||
| Cash | $289M | $264M | $342M | $124M | $90.5M |
| Long-term debt | $1.4B | $2.4B | $2.0B | $2.5B | $2.5B |
| Net cash (debt) | −$1.1B | −$2.2B | −$1.7B | −$2.4B | −$2.4B |
What Cintas says it does
Overview Cintas Corporation (Cintas, Company, we, us or our), a Washington corporation, helps more than one million businesses of all types and sizes, primarily in the United States (U.S.), as well as Canada and Latin America, get READY™ to open their doors with confidence every day by providing a wide range of products and services that enhance our customers’ image and help keep their facilities and employees clean, safe and looking their best. With products and services including uniforms, mats, mops, shop towels, restroom supplies, workplace water services, first aid and safety products, automated external defibrillators (AEDs), eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm testing, Cintas helps customers get Ready for the Workday ® . Cintas was founded in 1968 by Richard T. Farmer when he left his family's industrial laundry business in order to develop uniform programs using an exclusive new…