CTAS:NASDAQCintas Corporation Analysis
Data as of 2026-03-27 - not real-time
$168.85
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Cintas’ stock is trading at $168.85, well below its 20‑day ($191.6), 50‑day ($193.6) and 200‑day ($200.1) simple moving averages, signaling a bearish technical backdrop. The RSI of 21.5 places the security in oversold territory, while a bearish MACD histogram (-2.69) and a price hovering just above the identified support level of $168.02 suggest limited downside but heightened volatility, as evidenced by a 30‑day price swing of roughly 25%.
On the fundamentals side, CTAS delivered an 8.9% revenue jump to $2.84 B in Q3 2026, maintaining strong gross (50.4%) and operating (23.2%) margins and an exceptional ROE of 41.3%. The forward‑looking EPS of $5.43 and a forward P/E of 31.1 remain above the industry average P/E of 28.5, indicating the stock is priced for growth. The $5.5 B cash‑and‑stock acquisition of UniFirst, projected to add $375 M in synergies, provides a clear growth catalyst, while a 1.07% dividend yield with a 36.7% payout ratio appears sustainable given robust cash flows. Analyst consensus (median target $213) still implies upside of ~26% from current levels, despite the DCF‑derived fair value of $67.3 suggesting the market may be overvaluing the business relative to discounted cash‑flow expectations.
On the fundamentals side, CTAS delivered an 8.9% revenue jump to $2.84 B in Q3 2026, maintaining strong gross (50.4%) and operating (23.2%) margins and an exceptional ROE of 41.3%. The forward‑looking EPS of $5.43 and a forward P/E of 31.1 remain above the industry average P/E of 28.5, indicating the stock is priced for growth. The $5.5 B cash‑and‑stock acquisition of UniFirst, projected to add $375 M in synergies, provides a clear growth catalyst, while a 1.07% dividend yield with a 36.7% payout ratio appears sustainable given robust cash flows. Analyst consensus (median target $213) still implies upside of ~26% from current levels, despite the DCF‑derived fair value of $67.3 suggesting the market may be overvaluing the business relative to discounted cash‑flow expectations.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 5/10
Key Factors
- Price near technical support with oversold RSI
- High short‑term volatility and bearish trend indicators
- Uncertainty around timing of UniFirst integration
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Projected $375 M synergies from UniFirst acquisition
- Sustained revenue growth and strong operating margins
- Analyst price targets indicating ~26% upside
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Robust ROE (41%) and cash flow generation
- Dividend yield with a comfortable payout ratio
- Long‑term secular demand for uniform and safety services
Key Metrics & Analysis
Financial Health
Revenue Growth8.90%
Profit Margin17.57%
P/E Ratio35.6
ROE41.30%
ROA15.94%
Debt/Equity60.94
P/B Ratio14.1
Op. Cash Flow$2.2B
Free Cash Flow$1.5B
Industry P/E28.5
Technical Analysis
TrendBearish
RSI21.5
Support$168.02
Resistance$209.08
MA 20$191.64
MA 50$193.56
MA 200$200.07
MACDBearish
VolumeIncreasing
Fear & Greed Index71.79
Valuation
Fair Value$67.27
Target Price$214.24
Upside/Downside26.88%
GradeOvervalued
TypeBlend
Dividend Yield1.07%
Risk Assessment
Beta0.64
Volatility25.03%
Sector RiskMedium
Reg. RiskLow
Geo RiskLow
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.