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3 Reasons We Love Cintas (CTAS)

CTAS Cover Image

Since August 2020, the S&P 500 has delivered a total return of 87.8%. But one standout stock has more than doubled the market - over the past five years, Cintas has surged 194% to $222.50 per share. Its momentum hasn’t stopped as it’s also gained 8.9% in the last six months, beating the S&P by 5.3%.

Is now still a good time to buy CTAS? Or is this a case of a company fueled by heightened investor enthusiasm? Find out in our full research report, it’s free.

Why Is CTAS a Good Business?

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ:CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

1. Long-Term Revenue Growth Shows Strong Momentum

A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Cintas grew its sales at a solid 7.9% compounded annual growth rate. Its growth surpassed the average business services company and shows its offerings resonate with customers. Cintas Quarterly Revenue

2. Outstanding Long-Term EPS Growth

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Cintas’s EPS grew at an astounding 16.7% compounded annual growth rate over the last five years, higher than its 7.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Cintas Trailing 12-Month EPS (GAAP)

3. Excellent Free Cash Flow Margin Boosts Reinvestment Potential

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

Cintas has shown terrific cash profitability, enabling it to reinvest, return capital to investors, and stay ahead of the competition while maintaining an ample cushion. The company’s free cash flow margin was among the best in the business services sector, averaging 16.5% over the last five years.

Cintas Trailing 12-Month Free Cash Flow Margin

Final Judgment

These are just a few reasons why Cintas ranks highly on our list, and with its shares topping the market in recent months, the stock trades at 45.8× forward P/E (or $222.50 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More Than Cintas

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Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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