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If You Invested $1000 in Cintas 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Cintas (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 (78.2% of fiscal 2023 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 (10.8% of fiscal 2023 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 11% of fiscal 2023 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
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Cintas ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $11,567.48, or a 1,056.75% gain, as of April 8, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 179.04% and the price of gold increased 70.62% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for CTAS.
Cintas is experiencing strength across its segments. Strong momentum in the energy end market is boosting the Uniform Rental and Facility Services unit’s performance. Increasing demand for AED Rentals, eyewash stations and WaterBreak products is driving the growth of the First Aid and Safety Services segment. The company's focus on the enhancement of its product portfolio holds promise. The successive acquisitions of Paris Uniform and SITEX sparked optimism in the stock. Also, Cintas’ efforts to reward shareholders are impressive. However, the rising cost of sales and increasing selling and administrative expenses pose a threat to the company’s bottom line. The high debt level is an added concern for it. Also, given the company's substantial international presence, foreign currency headwinds are weighing on its top line.
Shares have gained 7.73% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in Cintas 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Cintas (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 (78.2% of fiscal 2023 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 (10.8% of fiscal 2023 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 11% of fiscal 2023 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
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Cintas ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $11,567.48, or a 1,056.75% gain, as of April 8, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 179.04% and the price of gold increased 70.62% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for CTAS.
Cintas is experiencing strength across its segments. Strong momentum in the energy end market is boosting the Uniform Rental and Facility Services unit’s performance. Increasing demand for AED Rentals, eyewash stations and WaterBreak products is driving the growth of the First Aid and Safety Services segment. The company's focus on the enhancement of its product portfolio holds promise. The successive acquisitions of Paris Uniform and SITEX sparked optimism in the stock. Also, Cintas’ efforts to reward shareholders are impressive. However, the rising cost of sales and increasing selling and administrative expenses pose a threat to the company’s bottom line. The high debt level is an added concern for it. Also, given the company's substantial international presence, foreign currency headwinds are weighing on its top line.
Shares have gained 7.73% over the past four weeks and there have been 9 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.