📊 CTAS Key Takeaways
Is Cintas Corp. (CTAS) a Good Investment?
Cintas demonstrates exceptional operational excellence with industry-leading margins (23.1% operating margin, 17.9% net margin) and robust profitability metrics (ROE 22.1%, ROA 9.7%). The company exhibits strong financial health with solid liquidity (1.71x current ratio), conservative leverage (0.54x debt/equity), and exceptional interest coverage (16.6x), enabling sustainable shareholder value creation through consistent free cash flow generation ($737.5M, 13.4% FCF margin).
Cintas shows high-quality fundamentals with strong margins, solid returns on capital, and consistent free cash flow generation. Revenue growth remains healthy and liquidity is sound, but the latest period’s very modest net income growth suggests some earnings momentum has softened despite strong operating performance.
Why Buy Cintas Corp. Stock? CTAS Key Strengths
- Superior profitability with operating margin of 23.1% and net margin of 17.9%, indicating strong operational efficiency and pricing power
- Excellent capital allocation reflected in ROE of 22.1% and healthy free cash flow of $737.5M representing 13.4% of revenue
- Strong balance sheet with conservative leverage (0.54x debt/equity), substantial interest coverage (16.6x), and adequate liquidity (1.71x current ratio)
- Consistent revenue growth of 7.7% YoY coupled with EPS growth of 16.1%, demonstrating operational leverage and shareholder value creation
- Solid free cash flow generation with FCF margin of 13.4%, providing financial flexibility for investments, dividends, or debt reduction
- Strong profitability profile with 50.4% gross margin, 23.1% operating margin, and 17.9% net margin
- Healthy financial position supported by 1.71x current ratio, 1.49x quick ratio, and manageable 0.54x debt-to-equity
- Strong cash generation with $737.50M in free cash flow and a 13.4% free cash flow margin
CTAS Stock Risks: Cintas Corp. Investment Risks
- Net income growth of only 0.4% YoY despite 7.7% revenue growth suggests margin compression or operational headwinds that warrant monitoring
- High insider activity with 11 Form 4 filings in the last 90 days may indicate uncertain outlook or significant executive repositioning
- Debt of $2.4B represents meaningful leverage despite conservative ratios; rising interest rates could pressure profitability
- Net income grew only 0.4% year over year, indicating possible margin pressure below the operating line or slower earnings conversion
- Cash balance is relatively modest versus $2.43B in long-term debt, which could reduce flexibility if conditions tighten
- Growth may be vulnerable to labor cost inflation, customer retention pressure, or slowing demand in core business services
Key Metrics to Watch
- Operating margin trend and gross margin sustainability amid competitive and cost pressures
- Free cash flow consistency and capital expenditure efficiency
- Revenue growth acceleration relative to margin expansion to confirm operational leverage
- Debt levels and interest expense trajectory in rising rate environment
- Net income growth relative to revenue growth
- Free cash flow margin and operating cash flow conversion
Cintas Corp. (CTAS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Cintas Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CTAS Profit Margin, ROE & Profitability Analysis
CTAS vs Market Sector: How Cintas Corp. Compares
How Cintas Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cintas Corp. Stock Overvalued? CTAS Valuation Analysis 2026
Based on fundamental analysis, Cintas Corp. appears fundamentally strong relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cintas Corp. Balance Sheet: CTAS Debt, Cash & Liquidity
CTAS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cintas Corp.'s revenue has grown significantly by 45% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.25 reflects profitable operations.
CTAS Revenue Growth, EPS Growth & YoY Performance
CTAS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $2.6B | $448.5M | $1.13 |
| Q2 2026 | $2.6B | $448.5M | $1.09 |
| Q1 2026 | $2.5B | $452.0M | $1.10 |
| Q3 2025 | $2.4B | $374.6M | $0.96 |
| Q2 2025 | $2.4B | $374.6M | $0.90 |
| Q1 2025 | $2.3B | $385.1M | $0.93 |
| Q3 2024 | $2.2B | $324.3M | $3.14 |
| Q2 2024 | $2.2B | $324.3M | $3.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cintas Corp. Dividends, Buybacks & Capital Allocation
CTAS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cintas Corp. (CIK: 0000723254)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CTAS
What is the AI rating for CTAS?
Cintas Corp. (CTAS) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 89% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CTAS's key strengths?
Claude: Superior profitability with operating margin of 23.1% and net margin of 17.9%, indicating strong operational efficiency and pricing power. Excellent capital allocation reflected in ROE of 22.1% and healthy free cash flow of $737.5M representing 13.4% of revenue. ChatGPT: Strong profitability profile with 50.4% gross margin, 23.1% operating margin, and 17.9% net margin. Healthy financial position supported by 1.71x current ratio, 1.49x quick ratio, and manageable 0.54x debt-to-equity.
What are the risks of investing in CTAS?
Claude: Net income growth of only 0.4% YoY despite 7.7% revenue growth suggests margin compression or operational headwinds that warrant monitoring. High insider activity with 11 Form 4 filings in the last 90 days may indicate uncertain outlook or significant executive repositioning. ChatGPT: Net income grew only 0.4% year over year, indicating possible margin pressure below the operating line or slower earnings conversion. Cash balance is relatively modest versus $2.43B in long-term debt, which could reduce flexibility if conditions tighten.
What is CTAS's revenue and growth?
Cintas Corp. reported revenue of $5.5B.
Does CTAS pay dividends?
Cintas Corp. pays dividends, with $340.1M distributed to shareholders in the trailing twelve months.
Where can I find CTAS SEC filings?
Official SEC filings for Cintas Corp. (CIK: 0000723254) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CTAS's EPS?
Cintas Corp. has a diluted EPS of $2.41.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CTAS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Cintas Corp. has a BUY rating with 89% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CTAS stock overvalued or undervalued?
Valuation metrics for CTAS: ROE of 22.1% (sector avg: 15%), net margin of 17.9% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy CTAS stock in 2026?
Our dual AI analysis gives Cintas Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CTAS's free cash flow?
Cintas Corp.'s operating cash flow is $945.7M, with capital expenditures of $208.2M. FCF margin is 13.4%.
How does CTAS compare to other Market stocks?
Vs Default sector averages: Net margin 17.9% (avg: 12%), ROE 22.1% (avg: 15%), current ratio 1.71 (avg: 1.8).