📊 Cintas ($CTAS) share analysis 2025 - Strong earnings & growth, but is the share too expensive?

On Wednesday, September 24has $CTAS (-0.37%)
Cintas published its figures for the first quarter of the 2026 fiscal year - and delivered solid results:

• GAAP EPS: $1.20 per share - in line with expectations
• Revenue: $2.72bn (+8.7% YoY) - $20m above consensus
• Organic growth: 7,8 %
• Acquisitions: remaining share of growth

Operationally strong:

• Gross profit: $1.37 bn (+9 %), gross margin +20 bps to 50,3 %
• Operating profit: $617.9m (+2.5%), operating margin 22,7 % (previous year: 22.4 %)
• Net result: $491.1m - +9.1 % EPS growth

Drivers of growth:

• Core segments: Uniform Rental & Facility Services continue to deliver the majority of sales. Particularly strong: First Aid & Safety and Fire Protection due to recurring demand.
• Acquisitions: Increase customer density, cross-selling opportunities and reach.
• Efficiency improvements: SAP, auto-sorting in the plants and the SmartTruck system ensure lower costs and higher productivity.

Risks at a glance:

• Integration risks: Synergies from acquisitions could be lower than planned.
• Inflation: Higher wages, energy and transportation costs can weigh on margins.
• Competition & customer side: Price increases could deter customers or lead to lower-margin products.

Outlook raised:

• Sales: $11.06 - $11.18 bn (old: $11.00 - $11.15 bn)
• EPS: $4.74 - $4.86 (old: $4.71 - $4.85)

The forecast takes into account no further share buybacks or acquisitions and and assumes stable exchange rates.

The valuation:

• The share is currently valued at a price/free cash flow ratio (P/FCF) of of 46,88x traded. For comparison: The 5-year average is 38,34xthe 10-year average is 35,14x - well above the average.
• The forward P/E ratio looks more exciting: At 37,95x it is below the 5-year average of 39.11x and close to the 10-year average of 31.53x.

This shows that The share is currently fairly valued to slightly overvalued - but by no means cheap. It can therefore remain attractive for long-term investors

💡 Conclusion:

Cintas is once again delivering strong sales and earnings growth with a rising margin - a sign of efficient processes and a robust business model. The share price has risen by around 8 % since Decemberbut still not cheap. Investors can look forward to a solid quality company - but newcomers should look for a more attractive entry point.

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