Cintas Corp

CTAS: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$728.00	Nhhk	Xcsqmptxs

Cintas Earnings: Fiscal First-Quarter Results Continue to Look Solid

Matthew Young

Sep 25, 2024

Wide-moat Cintas reported fiscal 2025 first-quarter results (ended August) that reflect continued healthy growth across all three business segments. Organic top-line gains were mostly in line with our forecast, while operating margin came in slightly ahead, likely due to lower energy-related outlays. Fiscal 2025 revenue and EPS guidance were largely in line with our model assumptions. We've raised our fair value estimate to $137 from $130, due to slightly higher long-term margin assumptions and the time value of money. Note our fair value estimate reflects the September 2024 4-for-1 stock split. In our view, the stock is still rich relative to our long-term free cash flow forecasts.

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