Cintas Corporation (CTAS) AI Stock Analysis
CTAS AI stock analysis summary
AI ResearchCintas Corporation provides corporate identity uniforms and business services across North America and Latin America. In FY2026, revenue increased 8.9% to $11.26B while net income reached $2.00B with a 17.8% net margin. The stock trades at a trailing P/E of 42.1x and forward P/E of 36.2x, representing a premium over its sector peers.
- Market cap
- $84.85B
- Revenue (TTM)
- $11.56B
- P/E
- 42.1x fwd 36.2x
- 1Y return
- 17.1% S&P 500 16.8%
- Avg. target
- $218.31 2.2% vs last close
Bull case
- Revenue expanded at a 9.6% 5-year CAGR through FY2026, reaching $11.26B alongside a 50.5% gross margin.
- Trailing twelve-month return on equity reached 41.4% with free cash flow of $1.88B in FY2026.
- Dividends have grown at an annualized rate of 19.1% over 5 years, supported by 43 consecutive years of payments.
Bear case
- Valuation multiples are elevated, with a trailing P/E of 42.1x compared to the median of its Nasdaq-100 Industrials peers at 28.5x.
- The stock trades at a PEG ratio of 3.14 with a price-to-book ratio of 15.4x.
- The mean price target of $218.31 sits just 2.2% above the last close price of $213.69.
What Cintas does
Cintas Corporation specializes in providing corporate identity uniforms and comprehensive business services across the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other services segments. Offerings include uniform rental and servicing, flame-resistant clothing, mats, mops, shop towels, restroom cleaning, and direct uniform sales. Cintas also provides first aid and safety solutions, alongside fire protection products and services to assist companies with safety regulations. It serves businesses ranging from small firms to large corporations through a dedicated distribution network.
Growth and profitability
Between FY2022 and FY2026, annual revenue grew from $7.85B to $11.26B, generating a 5-year revenue CAGR of 9.6%. Gross margin expanded from 46.2% in FY2022 to 50.5% in FY2026, while operating margin rose from 20.2% to 23.1%. Net income reached $2.00B in FY2026, up from $1.24B in FY2022. For the trailing twelve months ended August 31, 2026, revenue stood at $11.56B with an operating margin of 24.1% and EPS of $5.07. In the latest quarter ended August 31, 2026, quarterly revenue grew 10.9% year-over-year and quarterly earnings grew 13.3%.
Balance sheet and cash flow
As of August 31, 2026, Cintas held $243.6M in cash and short-term investments alongside total debt of $2.71B, resulting in net debt of $2.47B. The current ratio stood at 1.45, with a debt-to-equity ratio of 0.52 on shareholders' equity of $5.20B. In FY2026, the company generated $2.28B in operating cash flow and $1.88B in free cash flow. Capital expenditures were $395.1M, while capital return included $952.1M spent on share buybacks and $701.5M paid in dividends.
Valuation and performance
Cintas holds a market capitalization of $84.85B and an enterprise value of $79.16B. The stock trades at a trailing P/E of 42.1x and an EV/EBITDA of 26.1x, above the median of its Nasdaq-100 Industrials peers, which sit at 28.5x and 19.9x respectively. Its forward P/E is 36.2x compared to the peer median of 22.2x, with a price-to-sales ratio of 7.3x versus 6.1x. Over the past year, the stock returned 17.1%, compared to 16.8% for the S&P 500, and delivered a 5-year return of 115.3% versus 83.0% for the index.
CTAS dividend
Cintas pays a quarterly dividend with a forward annual dividend of $2.08, providing a dividend yield of 0.97%. The payout ratio is 36.4%. Cintas has paid dividends for 43 consecutive years, with an annualized 5-year dividend growth rate of 19.1%. Its last ex-dividend date was August 14, 2026.
What analysts expect
Wall Street analysts hold 8 Strong Buy, 2 Buy, 9 Hold, 0 Sell, and 1 Strong Sell ratings on the stock. The mean price target is $218.31, representing 2.2% upside from the last close of $213.69. For the fiscal year ending May 31, 2027, consensus estimates project EPS of $5.54 on revenue of $12.25B. For the following fiscal year, 18 analysts forecast EPS of $6.16 and revenue of $13.17B. The company beat EPS estimates in 3 of the last 4 quarters.
Key risks and what to watch
- Total debt of $2.71B leaves net debt at $2.47B relative to $243.6M in cash and short-term investments.
- The trailing P/E of 42.1x and forward P/E of 36.2x leave little room for operational deceleration.
- Short interest accounts for 4.2% of the company's float.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CTAS AI stock analysis
This page is an AI-written research summary of Cintas Corporation (CTAS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CTAS income statement, CTAS balance sheet, CTAS key metrics, CTAS analyst forecast, CTAS chart. See the CTAS stock overview for the latest quote and news.
CTAS AI stock analysis FAQ
What is Cintas Corporation's dividend yield and track record?
Cintas provides a dividend yield of 0.97% based on an annual forward dividend of $2.08. The company has paid dividends for 43 consecutive years and maintains a payout ratio of 36.4%.
How fast is Cintas growing its earnings and revenue?
In the latest quarter ended August 31, 2026, revenue increased 10.9% and earnings grew 13.3% year-over-year. For the fiscal year ending May 31, 2027, analysts project 12.2% EPS growth to $5.54 on $12.25B in revenue.
How does CTAS valuation compare to its sector peers?
CTAS trades at a trailing P/E of 42.1x and EV/EBITDA of 26.1x. This is higher than the median of its Nasdaq-100 Industrials peers, which sit at 28.5x and 19.9x respectively.
What is the consensus analyst target for CTAS stock?
The analyst consensus mean price target is $218.31, which is 2.2% above the last closing price of $213.69. The stock has 10 positive ratings (8 Strong Buy, 2 Buy), 9 Hold ratings, and 1 Strong Sell rating.