Cintas investors are poised for more growth

Article Excerpt

Cintas’s shares have jumped 48% in the past year as investors expect COVID-19 vaccines will let more businesses re-open and spur demand for its corporate uniforms. Even after that big rise, we feel Cintas can continue to move higher as it aims to expand its market share with acquisitions of smaller competitors. A new computer system is also lowering its costs. CINTAS CORP. $354 remains a buy for aggressive investors. The company (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 104.0 million; Market cap: $36.8 billion; Price-to-sales ratio: 5.4; Dividend yield: 0.8%; TSINetwork Rating: Average; www.cintas.com) designs and makes uniforms, then sells or rents them to businesses, mainly in North America. It also sells related products and services, such as office cleaning and first-aid kits. Overall revenue jumped 47.7%, from $4.80 billion in 2016 to $7.09 billion in 2020 (fiscal years end May 31). That’s mainly due to its March 2017 purchase of uniform supplier G&K Services. Based…

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