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Cintas Corp (CTAS-Q) is facing mixed sentiments among experts ahead of its upcoming earnings report. Concerns have been raised regarding its reliance on small businesses for uniform rentals, especially after a disappointing previous quarter that resulted in a sell-off. However, some experts see the company as resilient, pointing to its strong customer base and impressive organic growth. The recent announcement of a 4-for-1 stock split is expected to attract new investors, despite recent downgrades that some analysts disagree with. Additionally, potential M&A activities, including a hostile takeover of Unifirst, may attract regulatory scrutiny but demonstrate the company's ambition in a competitive landscape.
CTAS operates as a corporate uniform service provider, and is now trading at 35x times' Forward P/E. In the last five years, sales grew around 6% on average. The balance sheet is strong, with net debt of $2.5B. Net debt/EBITDA is currently at 1.1x. Based on consensus estimates, sales are expected to grow by 6%-8% on average over the next few years. The company has been consistently raising dividends and repurchasing shares over the last few years, which we like. Overall, a solid company with the recurring business model and shareholder-friendly policies, however, trading at 35x Forward P/E while growth is only around 7% does not seem to us as a screaming buy, but we would be comfortable averaging into the position over time, being more aggressive if valuation dips.
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Cintas Corp is a American stock, trading under the symbol CTAS-Q on the NASDAQ (CTAS). It is usually referred to as NASDAQ:CTAS or CTAS-Q
In the last year, 4 stock analysts published opinions about CTAS-Q. 3 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Cintas Corp.
Cintas Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Cintas Corp.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
4 stock analysts on Stockchase covered Cintas Corp In the last year. It is a trending stock that is worth watching.
On 2025-05-01, Cintas Corp (CTAS-Q) stock closed at a price of $209.55.
It reports Wednesday. The market didn't like their last report and shares got hammered. He's worried about small business, and Cintas sells uniforms to small business.