For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Cintas (
CTAS Quick Quote CTAS - Free Report) ten years ago? It may not have been easy to hold on to CTAS for all that time, but if you did, how much would your investment be worth today? Cintas' Business In-Depth
With that in mind, let's take a look at Cintas' main business drivers.
Founded in 1968 and headquartered in Cincinnati, OH, Cintas Corporation provides specialized services to businesses of all types throughout North America. It also operates in Europe, Asia and Latin America. The company designs, manufactures, implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products and first aid and safety products for diversified businesses.
Notably, the company provides products and services through distribution and retail channels to small service and manufacturing companies as well as leading corporations. The company primarily reports revenues under two operating segments — Uniform Rental and Facility Services, and First Aid and Safety Services. Uniform Rental and Facility Services (79.2% of third-quarter fiscal 2022 revenues) segment includes rental, and servicing of uniforms, mats and towels as well as the provision for restroom supplies, and other facility products and services. Further, selling items from catalogs to customer routes are reported under this segment. First Aid and Safety Services (10.9% of third-quarter fiscal 2022 revenues) segment includes the sale and servicing of first aid products, safety products and training to customers.
Businesses, with Uniform Direct Sale and Fire Protection Services, are included in All Other. Revenues generated from All Other businesses represented 9.9% of third-quarter fiscal 2022 revenues.
It's worth mentioning here that results of First Aid and Safety Services segment and All Other businesses are grouped under Other Services in Cintas' income statement. Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Cintas, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in April 2012 would be worth $11,011.29, or a gain of 1,001.13%, as of April 5, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 227.57% and the price of gold went up 10.70% over the same time frame.
Going forward, analysts are expecting more upside for CTAS.
Cintas' third-quarter fiscal 2022 earnings and revenues beat the Zacks Consensus Estimate by 8.9% and 3%, respectively. The company is poised to benefit from strength in its first aid cabinet service, uniform direct sale and fire protection services businesses. Its shareholder-friendly policies raise its attractiveness. For fourth-quarter fiscal 2022, the company expects revenues of $1.96-$2.02 billion and earnings of $2.54-$2.74 per share. In the past year, Cintas' shares have outperformed the industry. In the past 30 days, the company's earnings estimates have increased for fiscal 2022 and 2023. However, high tax rates are predicted to lower earnings in fiscal 2022. The persistence of woes related to high labor and energy expenses might be concerning. Also, the stock currently looks overvalued compared with the industry.
The stock is up 15.69% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2022. The consensus estimate has moved up as well.