📊 CTAS Key Takeaways
Investment Thesis
Cintas demonstrates exceptional operational excellence with industry-leading margins (23.1% operating margin, 17.9% net margin) and robust profitability metrics (ROE 22.1%, ROA 9.7%). The company exhibits strong financial health with solid liquidity (1.71x current ratio), conservative leverage (0.54x debt/equity), and exceptional interest coverage (16.6x), enabling sustainable shareholder value creation through consistent free cash flow generation ($737.5M, 13.4% FCF margin).
CTAS Strengths
- Superior profitability with operating margin of 23.1% and net margin of 17.9%, indicating strong operational efficiency and pricing power
- Excellent capital allocation reflected in ROE of 22.1% and healthy free cash flow of $737.5M representing 13.4% of revenue
- Strong balance sheet with conservative leverage (0.54x debt/equity), substantial interest coverage (16.6x), and adequate liquidity (1.71x current ratio)
- Consistent revenue growth of 7.7% YoY coupled with EPS growth of 16.1%, demonstrating operational leverage and shareholder value creation
- Solid free cash flow generation with FCF margin of 13.4%, providing financial flexibility for investments, dividends, or debt reduction
CTAS Risks
- Net income growth of only 0.4% YoY despite 7.7% revenue growth suggests margin compression or operational headwinds that warrant monitoring
- High insider activity with 11 Form 4 filings in the last 90 days may indicate uncertain outlook or significant executive repositioning
- Debt of $2.4B represents meaningful leverage despite conservative ratios; rising interest rates could pressure profitability
Key Metrics to Watch
- Operating margin trend and gross margin sustainability amid competitive and cost pressures
- Free cash flow consistency and capital expenditure efficiency
- Revenue growth acceleration relative to margin expansion to confirm operational leverage
- Debt levels and interest expense trajectory in rising rate environment
CTAS Financial Metrics
💡 AI Analyst Insight
CINTAS CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CTAS Profitability Ratios
CTAS vs Default Sector
How CINTAS CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CTAS Balance Sheet & Liquidity
CTAS 5-Year Financial Trend
5-Year Trend Summary: CINTAS CORP's revenue has grown significantly by 45% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.25 reflects profitable operations.
CTAS Growth Metrics (YoY)
CTAS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $2.6B | $448.5M | $1.09 |
| Q1 2026 | $2.5B | $452.0M | $1.10 |
| Q3 2025 | $2.4B | $374.6M | $0.96 |
| Q2 2025 | $2.4B | $374.6M | $0.90 |
| Q1 2025 | $2.3B | $385.1M | $0.93 |
| Q3 2024 | $2.2B | $324.3M | $3.14 |
| Q2 2024 | $2.2B | $324.3M | $3.12 |
| Q1 2024 | $2.2B | $351.7M | $3.39 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CTAS Capital Allocation
CTAS SEC Filings
Access official SEC EDGAR filings for CINTAS CORP (CIK: 0000723254)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CTAS
What is the AI rating for CTAS?
CINTAS CORP (CTAS) has an AI rating of STRONG BUY with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTAS's key strengths?
Superior profitability with operating margin of 23.1% and net margin of 17.9%, indicating strong operational efficiency and pricing power. Excellent capital allocation reflected in ROE of 22.1% and healthy free cash flow of $737.5M representing 13.4% of revenue.
What are the risks of investing in CTAS?
Net income growth of only 0.4% YoY despite 7.7% revenue growth suggests margin compression or operational headwinds that warrant monitoring. High insider activity with 11 Form 4 filings in the last 90 days may indicate uncertain outlook or significant executive repositioning.
What is CTAS's revenue and growth?
CINTAS CORP reported revenue of $5.5B.
Does CTAS pay dividends?
CINTAS CORP pays dividends, with $340.1M distributed to shareholders in the trailing twelve months.
Where can I find CTAS SEC filings?
Official SEC filings for CINTAS CORP (CIK: 0000723254) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTAS's EPS?
CINTAS CORP has a diluted EPS of $2.41.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.