Today, we are going to talk about Cintas, which published its financial statements last week.
Cintas published its latest report on March 27. 50% of the revenue structure is made up of manufacturing costs and 50% of gross revenue. Over the past quarter, the company made a profit of $397M. And its market capitalization is now $69B.
Cintas – provides industrial uniforms for rent, as well as fire safety and first aid services in the workplace. The company employs 44.5K personnel at 473 service centers to serve 1M customers in the US and Canada.
Cintas operates in the commercial goods and services industry. It was founded in 1929. In 1983, it was listed on the NASDAQ and in 2001 was included in the S&P 500 index. For the past 3 years, the company has been led by Todd Schneider and a team of experienced managers.
The main competitors of Cintas are Republic Services, Copart and Veralto. As you can see from the table above, the company is ahead of its competitors in terms of capitalization, as it has a number of competitive advantages.
Cintas’ strengths are based on its niche market positioning. The company has 5 manufacturing plants that produce branded industrial products for consumers. The company’s main segment, uniforms, has grown at a CAGR of 5.5% over the past 5 years. In addition, the company diversifies its activities through labor protection and logistics services. Cintas also pays annual dividends in the range of $3-5 per share.
Over the past three months, Cintas stock has risen by +13.3%. At the same time, the industrial sector, to which the company belongs, grew by +10.9%, and the S&P 500 index by +9.7%. As you can see, Cintas shares show better returns than the sector average.
