How Cintas Stock Has Gained From Strong Employment Trends In The U.S.

by Trefis Team
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Cintas (NASDAQ:CTAS) provides a host of services to businesses, including corporate uniforms, floor care, restroom supplies, first aid, and safety products and services. The stock is up by about 60% year-to-date, currently trading at levels of around $270 per share, driven by a strong U.S. job market, which helps the company sell more of its uniforms and other offerings. The company’s earnings over the Q4 FY’19 and Q1 FY’20 (fiscal years end June) were also been stronger than expected, boosting investor sentiment. As U.S. businesses continue to do well, we expect the company to see revenue growth of around 7% for FY’20, compared to a growth rate of about 6% last year. Below, we take a look at the company’s performance over the last few years and what the outlook could be like.

View our interactive dashboard analysis on Cintas Stock Has Benefited From Robust Employment Trends In The U.S

How does Cintas’s Revenue Growth in 2019 compare with that in prior periods and what’s the forecast?

Total Revenues for Cintas increased from $6.5 Bil in 2018 to $6.9 Bil in 2019; an increase of 6.4%.

This compares with Total Revenues growth of:

  • 9.75% in 2016 compared to 2015
  • 11.0% in 2017 compared to 2016
  • 21% in 2018 compared to 2017

We expect Total Revenues growth to be 7.4% in 2020.

How does Cintas’s Total Expense in 2019 compare with that in prior periods and what’s the forecast?

Total Expense for Cintas increased from $5.6 Bil in 2018 to $5.8 Bil in 2019; an increase of 2.7%.

This compares with Total Expense growth of:

  • 9.69% in 2016 compared to 2015
  • 13.3% in 2017 compared to 2016
  • 21.6% in 2018 compared to 2017

We expect Total Expense growth to be 8.7% in 2020.

How does Cintas’s EBT in 2019 compare with that in prior periods and what’s the forecast?

EBT for Cintas increased significantly by 31% from $0.8 Bil in 2018 to $1.1 Bil in 2019.

For 2020, we expect EBT to remain almost flat.

How do Cintas’s Net Income and EPS in 2019 compare with that in prior periods and what’s the forecast?

For more information on Cintas’s Net Income and EPS, view our interactive dashboard analysis.

 

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