Sector: Industrials | Focus: Diversified Support Services
HQ: Mason, Ohio
Financial Risks
Cintas faces market risk from interest rate fluctuations, foreign currency risk (primarily Canadian dollar), and potential credit losses from trade receivables. Legal proceedings, including a class action lawsuit, and potential tax audits in foreign and domestic jurisdictions, pose risks. Supply chain constraints, macroeconomic conditions (inflation, higher interest rates), and competitor actions are also mentioned as potential risks. The company's ability to access debt markets favorably is contingent on credit ratings.
Financial Upside
Cintas experienced revenue growth of 6.8% in the three months ended August 31, 2024, driven by organic growth and acquisitions. Improved cost of sales percentages and operating income as a percentage of revenue are positive signs. The company has authorized share buyback programs, and declared dividends. Access to a $2 billion revolving credit facility provides liquidity.
