Wait for a dip to buy Cintas stock

We believe there are only a couple of things to fear in CTAS stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive. Here is our multi-factor assessment.

But no matter how attractive, investing in a single stock carries high risk. Trefis High Quality Portfolio and is designed to reduce stock-specific risk while giving upside exposure

Let’s get into details of each of the assessed factors but before that, for quick background: With $91 Bil in market cap, Cintas provides corporate identity uniforms, uniform rental, facility services, first aid and safety solutions, and maintenance products like mats, mops, and flame-resistant clothing.

[1] Valuation Looks Very High

This table highlights how CTAS is valued vs broader market. For more details see: CTAS Valuation Ratios

[2] Growth Is Moderate

• Cintas has seen its top line grow at an average rate of 10.0% over the last 3 years
• Its revenues have grown 7.8% from $9.4 Bil to $10 Bil in the last 12 months
• Also, its quarterly revenues grew 8.4% to $2.6 Bil in the most recent quarter from $2.4 Bil a year ago.

This table highlights how CTAS is growing vs broader market. For more details see: CTAS Revenue Comparison

[3] Profitability Appears Strong

• CTAS last 12 month operating income was $2.3 Bil representing operating margin of 22.8%
• With cash flow margin of 21.8%, it generated nearly $2.2 Bil in operating cash flow over this period
• For the same period, CTAS generated nearly $1.8 Bil in net income, suggesting net margin of about 17.5%

This table highlights how CTAS profitability vs broader market. For more details see: CTAS Operating Income Comparison

[4] Financial Stability Looks Strong

• CTAS Debt was $2.7 Bil at the end of the most recent quarter, while its current Market Cap is $91 Bil. This implies Debt-to-Equity Ratio of 3.0%
• CTAS Cash (including cash equivalents) makes up $243 Mil of $9.6 Bil in total Assets. This yields a Cash-to-Assets Ratio of 2.5%

[4] Downturn Resilience Is Moderate

CTAS saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• CTAS stock fell 24.2% from a high of $114.61 on 10 December 2021 to $86.84 on 17 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 30 November 2022
• Since then, the stock increased to a high of $227.66 on 8 June 2025 , and currently trades at $220.91

 
2020 Covid Pandemic

• CTAS stock fell 48.4% from a high of $76.06 on 19 February 2020 to $39.27 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 29 July 2020

 
2008 Global Financial Crisis

• CTAS stock fell 57.6% from a high of $10.70 on 20 February 2007 to $4.54 on 9 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 7 February 2013

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read CTAS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.