Cintas’ dominant market position in essential business services, combined with its track record of consistent growth and profit margin expansion, makes it an attractive defensive growth investment suitable for most any market conditions. Management’s ability to execute strategic initiatives while maintaining operational discipline has delivered superior financial performance that consistently exceeds investor expectations.
Cintas’ diversified customer base, long-term service contracts, and essential nature of its offerings provide substantial downside protection while offering meaningful upside potential as the economy continues to expand. We also love the firm’s focus on innovation, technology deployment, and operational excellence. So does the market, with the shares consistently outperforming the S&P500. That includes a 21.5% gain in 2025 compared to just 2.0% for the S&P500.
Meanwhile, the stock trades at 50.5 times the company’s forward earnings forecast. That’s a high multiple, but we feel it’s justified thanks to superior earnings growth, a recession-resistant recurring revenue model, industry-leading operational efficiency, and a proven track record of consistent shareholder returns.
CINTAS CORP. (Nasdaq symbol CTAS) designs and makes uniforms, then sells them to businesses, mainly in North America. It also offers related products and services such as office-cleaning and first-aid kits.
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Cintas gets 78% of its revenue from renting uniforms, which it makes and cleans at its own factories, and from renting a wide variety of related products, such as floor mats, towels, mops and cleaning supplies.
It gets a further 11% of its revenue by providing first-aid kits, as well as safety equipment, such as eyewash stations, and personal protective gear like goggles and face masks.
The remaining 11% comes from selling uniforms to businesses, and providing fire extinguishers, sprinklers and emergency-exit lights. In addition, Cintas helps its clients comply with local safety regulations.
Growth Stocks: Consensus-beating results lead the way
In its fiscal 2025 third quarter, ended February 28, 2025, revenue rose 8.4%, to $2.61 billion from $2.41 billion a year earlier. That beat the $2.60 billion consensus forecast.
The higher revenue and a lower tax rate lifted the company’s earnings in the quarter by 16.6%, to $463.5 million from $397.6 million. Due to fewer shares outstanding, per-share earnings rose at a faster rate of 17.7%, to $1.13 from $0.96. (Note—All per-share amounts adjusted for a 4-for-1 stock split on September 11, 2024.)
If you exclude a $0.03-a-share gain on the sale of property, Cintas earned $1.10 a share in the latest quarter. That topped the consensus estimate of $1.05.
Cintas now expects its revenue for all of fiscal 2025 will rise about 7.5%. It should also earn between $4.36 and $4.40 a share, which is higher than its earlier forecast of $4.28 to $4.34 a share. The stock, which is up 21.5% so far this year, trades at 50.5 times the midpoint of that new range. That’s a high p/e, but still acceptable given the company’s leading position in its niche market and its improving profitability.
Cintas also uses multiple suppliers, so it’s at little risk due to U.S. tariffs. The $1.56 dividend yields 0.7%.
Recommendation in Wall Street Stock Forecaster: Cintas Corp. is a buy for aggressive investors.
