Assessing Cintas: Insights From 7 Financial Analysts

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Cintas CTAS in the last three months.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $627.14, a high estimate of $660.00, and a low estimate of $585.00. Observing a 10.28% increase, the current average has risen from the previous average price target of $568.67.

Exploring Analyst Ratings: An In-Depth Overview

The perception of Cintas by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cintas. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Cintas compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Cintas's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Cintas's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Cintas analyst ratings.

Delving into Cintas's Background

Cintas is positioned as a one-stop shop that rents/sells uniforms and ancillary products and services, such as mops, first aid kits, and fire inspections. In its core uniform and facility services unit (a majority of sales), Cintas provides uniform rental programs for items including office attire, custom-tailored apparel, flame-resistant clothing, lab coats, and other profession-specific clothing. Facilities products generally include the rental and sale of entrance mats, mops, shop towels, hand sanitizers, and restroom supplies. Cintas' remaining businesses include first aid and safety services, fire protection services, and uniform direct sales.

Unraveling the Financial Story of Cintas

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Cintas showcased positive performance, achieving a revenue growth rate of 9.3% as of 30 November, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 15.7%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Cintas's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.25% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Cintas's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.26% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 0.72, Cintas adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.