How Does This Uniform Service Operate?
Cintas provides corporate identity uniforms and related workplace services to businesses. The offering also includes facility services that support day-to-day operations, alongside first aid and safety products and services. It operates at large scale, with a market capitalization of about USD 70.6 billion. The business is built around recurring, service-heavy customer relationships rather than one-off product sales.
Are Revenue Gains Supporting Profitability?
FundamentalsFor the year ended May 31, 2025, reported in USD, revenue was about USD 10.3 billion, with EBIT of roughly USD 2.4 billion and net income of about USD 1.8 billion. Revenue grew 7.7% versus the prior annual period, while profitability remained high, with a 50.25% gross margin, a 22.98% operating margin, and a 17.58% net profit margin.
Cash conversion, using the provided proxy that adjusts EBIT after tax for depreciation and amortization and capital spending, was about USD 1.8 billion. Depreciation and amortization totaled about USD 303 million and capital spending was roughly USD 409 million, leaving cash on hand at about USD 264 million at year end.
Is the Market Overpaying for Stability?
DCF / MultiplesAt USD 176.46, the shares trade above the DCF fair value range under both weaker and stronger operating outcomes. The headline multiples align with that pricing, with a trailing P/E of 37.26 and EV/EBITDA of 27.37.
Durability Priced Into Shares
TakeawayThe business looks durable when margins stay this consistent. The current price assumes that durability persists for a long time. The case works best if growth stays steady and cash holds up. It can unravel if margins fade or reinvestment needs rise.