CTAS changes
Pick any two versions below to diff them.
- Price
- $223.16
- Discount category
- Far above intrinsic value
- Next earnings
- 2026-12-17
- Next earnings is estimate
- Yes
- Company name
- Cintas
- Sector
- Business services
- About
- Cintas rents and cleans work uniforms and supplies mats, towels, mops, restroom supplies and workplace water to businesses. It also sells first aid and safety products, fire extinguishers, sprinklers and alarm services, and safety training. It serves more than one million businesses of all sizes. Its main segment, Uniform Rental and Facility Services, had revenue of $2.29 billion in the quarter that ended August 31, 2026, of total revenue of $3.01 billion. First Aid and Safety Services had revenue of $389 million. Its fiscal year ends on May 31, and its head office is in Cincinnati, Ohio. Todd M. Schneider is its chief executive officer. In March 2026, Cintas agreed to buy UniFirst, a competitor in uniform rental.
- Thesis
- Cintas trades at a premium because investors pay for steady growth and rising margins in a business with many small customers and dense delivery routes. Organic revenue grew 8.9% in Q1 fiscal 2027, and the operating margin reached a record 23.6%. Investors also expect the purchase of UniFirst to add cost savings. For the premium to be earned, three things must be true. Organic growth must stay near 8% or more, as it was in fiscal 2026 and Q1 fiscal 2027. Margins must keep rising, and adjusted EPS must reach the fiscal 2027 guidance of $5.45 to $5.54. The UniFirst purchase must close, and the integration must give the expected savings. The premium can shrink if the Federal Trade Commission sues to block the UniFirst deal, as a press report on October 27, 2026 said it may. It can also shrink if job losses at customers slow growth. The timing agreement with the FTC lets the deal close no earlier than December 11, 2026, unless the FTC ends its review. The Q2 fiscal 2027 report, expected in mid-December 2026, is the next test.
- Risks
- The FTC may sue to block the UniFirst purchase, according to a press report of October 27, 2026. A lawsuit can delay the deal for many months or stop it. If the deal ends in some cases, Cintas must pay UniFirst $350 million, and the expected cost savings do not come. Cintas revenue depends on the number of workers at its customers. If the economy weakens and employers cut jobs, uniform rentals and new contracts can fall. If the UniFirst deal closes, Cintas takes on new debt and issues new shares. A slow integration or lost customers can lower the return on the deal. Energy, fuel, labor and medical costs can rise faster than prices. This can stop the rise in margins.
- Balance sheet
- Cash: $244M Debt: $2.4B Net debt: $2.2B Interest cover: 29× Undrawn credit line: $2.0B, to March 2031 Debt due within 12 months: $1.0B Last debt due: 2037 Ratings: S&P A- (stable outlook), Moody's A3 (stable outlook) Cintas has $2.44 billion of senior notes. The 3.70% notes of $1.0 billion are due in 2027, and the other notes are due in 2028, 2032 and 2037. Cash was $244 million at August 31, 2026. Interest cover is operating income divided by interest expense for Q1 fiscal 2027. A $2.0 billion revolving credit facility, which also supports the commercial paper program, runs to March 27, 2031 and had no borrowings at August 31, 2026. S&P rates the long-term debt A- and Moody's rates it A3, both with a stable outlook. For the UniFirst purchase, banks committed $2.85 billion of debt financing in March 2026, so debt will rise when the deal closes. Free cash flow was $464.8 million in Q1 fiscal 2027. In Q1 fiscal 2027 and to September 22, 2026, Cintas paid $544.7 million for buybacks. It paid a quarterly dividend of $208.8 million on September 15, 2026. There were 399.5 million shares outstanding at August 31, 2026. As of 2026-08-31.
- Checkpoints
- Sep 23, 2026: Q1 fiscal 2027 results: organic growth and margin. Passed. Watch: Organic growth near 8% or more with a higher operating margin passes; slower growth or a lower margin fails. Outcome: Organic growth was 8.9%, the operating margin reached a record 23.6% and Cintas raised its fiscal 2027 guidance. Dec 17, 2026 (estimate): Q2 fiscal 2027 results. Pending. Watch: Organic growth near 8%, a higher operating margin and confirmed or raised fiscal 2027 guidance pass; slower growth or lower guidance fail. Dec 2026 (estimate): FTC decision on the UniFirst purchase. Pending. Watch: An end of the FTC review, or a settlement that lets the deal close, passes; an FTC lawsuit to block the deal fails.
- Recent events
- 2026-10-27: A press report said that the FTC told Cintas that it will sue to block the UniFirst purchase. The FTC did not confirm this, and it had not voted. Cintas shares fell 5% that day. 2026-10-06: Cintas said that it and UniFirst certified on October 2, 2026, that they substantially complied with the FTC second request. They agreed with the FTC not to close the deal before December 11, 2026, unless the FTC closes its review before that date. The Canadian Competition Bureau also received complete answers on September 29, 2026. Cintas still expected the deal to close before the end of 2026. 2026-09-23: Cintas reported Q1 fiscal 2027 results. Revenue rose 10.9% to $3.01 billion, and organic growth was 8.9%. The operating margin rose to a record 23.6%, and diluted EPS rose 13.3% to $1.36, or $1.39 without UniFirst deal costs. Free cash flow was $464.8 million. Cintas raised its fiscal 2027 guidance to revenue of $12.15 billion to $12.27 billion and adjusted EPS of $5.45 to $5.54. 2026-07-28: Cintas made chief operating officer Jim Rozakis its president and COO, effective August 1, 2026. Todd Schneider stays chief executive officer. 2026-07-15: Cintas reported fiscal 2026 results. Revenue rose 8.9% to $11.26 billion, and organic growth was 8.3%. Diluted EPS rose 11.6% to $4.91. It gave first fiscal 2027 guidance of revenue of $12.10 billion to $12.25 billion and adjusted EPS of $5.36 to $5.50. 2026-06-11: UniFirst shareholders approved the sale to Cintas. On the same day, Cintas and UniFirst received a second request for information from the FTC. 2026-03-27: Cintas signed a new $2.0 billion revolving credit facility that runs to March 27, 2031. 2026-03-10: Cintas agreed to buy UniFirst for $155 in cash and 0.7720 Cintas shares for each UniFirst share. Banks committed $2.85 billion of debt financing. Cintas must pay UniFirst a fee of $350 million if the agreement ends in some cases. The outside date is January 10, 2027, with up to two extensions of four months.