CTAS

Cintas Corporation

Industrial/Transportation


Presented:03/23/2020
Price:$157.06
Cap:$16.30B
Current Price:$210.70
Cap:$84.98B

Presented

Date03/23/2020
Price$157.06
Market Cap$16.30B
Ent Value$31.37B
P/E Ratio17.78x
Book Value$31.96
Div Yield1.62%
Shares O/S103.75M
Ave Daily Vol696,175
Short Int2.70%

Current

Price$210.70
Market Cap$84.98B
Cintas Corp. engages in the provision of corporate identity uniform through rental and sales programs. It operates through the following segments: Uniform Rental and Facility Services, First Aid and Safety Services, All Other, and Corporate. The Uniform Rental and Facility Services segment consists of rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels, and other ancillary items. The First Aid and Safety Services segment comprises of first aid and safety products and services. The All Other segment includes fire protection services and its direct sale business. The Corporate segment consists of corporate assets such as cash and marketable securities. The company was founded by Richard T. Farmer in 1968 and is headquartered in Cincinnati, OH.

Publicly traded companies mentioned herein: Cintas Corporation (CTAS)

Highlights 

The presenter is short shares of Cintas Corporation (CTAS), a company that provides uniform and related services (rental, collecting, washing, delivering) for enterprises in the US. The stock has declined ~50% from the peak and is still trading at 20x on 2021 consensus earnings. The presenter views this multiple as still too rich, given its concentration in the service industry (i.e., restaurants, hotels, etc.) and believes that it has another 50% to fall.

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Idea Discussion

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