Cintas Corp (CTAS, Financial) has recently garnered significant attention from investors and analysts alike, thanks to its strong financial performance and promising growth trajectory. With a current share price of $763.58, Cintas Corp has enjoyed a daily increase of 0.61% and an impressive three-month growth of 15.35%. A detailed analysis, supported by the GF Score, indicates that Cintas Corp is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. These aspects have been proven to correlate strongly with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield better returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Cintas Corp boasts a GF Score of 93, highlighting its strong potential for market outperformance.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Understanding Cintas Corp's Business
Cintas Corp, with a market cap of $77.31 billion and annual sales of $9.41 billion, operates as a comprehensive service provider of uniforms, mops, first aid kits, and fire inspections. Primarily, its core uniform and facility services unit, which constitutes the majority of its sales, offers rental programs for a diverse range of professional attire. Additionally, Cintas sells products like entrance mats, shop towels, and restroom supplies, while also providing first aid and safety services, fire protection services, and direct uniform sales.
Financial Strength Breakdown
Cintas Corp's financial robustness is evident through its Financial Strength rating. The company's Interest Coverage ratio stands at an impressive 19.44, significantly above the benchmark set by Benjamin Graham. Furthermore, its Altman Z-Score of 13.35 and a Debt-to-Revenue ratio of 0.28 both underscore a strong financial foundation and prudent debt management.
Profitability and Growth Metrics
The Profitability Rank of Cintas Corp is exceptional, with significant improvements in its Operating Margin and Gross Margin over the past five years. These trends not only demonstrate Cintas Corp's efficiency in revenue conversion but also its competitive edge in the market. The company's Piotroski F-Score and Predictability Rank further affirm its operational excellence and reliability.
Conclusion
Considering Cintas Corp's robust financial strength, outstanding profitability, and consistent growth metrics, the GF Score effectively highlights the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
