Cintas: Can the uniform stock rise to $700?

Last Updated: 17. Januar 2024By

In fact, good money can also be made with work uniforms. Cintas is an American textile company that specializes in workwear. The company develops and produces uniforms and other work clothing that are part of corporate identity programs and makes them available for rent or purchase to companies of various sizes and industries.

Revenue and profits beat expectations In the last quarter, the company reported earnings of $3.61 per share, compared to $3.12 per share in the previous year. Analysts were expecting earnings per share of $3.49. Revenue was $2.38 billion, compared to $2.17 billion in the previous year. Analysts had expected $2.34 billion.

This is a strong performance „We are very pleased with our financial results for the second quarter of fiscal year 2024,“ said Cintas Chief Executive Todd Schneider. „This strong performance is the result of the exceptional dedication of our employees and partners.“

Outlook for fiscal year 2024 increased For fiscal year 2024, earnings per share of $14.35 to $14.65 are expected, with revenue of $9.48 to $9.56 billion, compared to the previous forecast of diluted earnings per share of $14 to $14.45 and revenue of $9.40 to $9.52 billion.

Strong chart, but limited upside potential Conclusion: A look at the stock price shows that the stock has performed well over the past year with few fluctuations. Looking at analyst expectations, a balanced sentiment is evident. 10 out of 21 analysts recommend buying, 9 analysts rate it as hold, and only 2 analysts recommend selling. The average analyst price target is $600, offering little potential. The highest analyst price target is even $700 โ€“ still a potential of almost 20%. With a P/E ratio of over 40, the uniform stock is no longer cheap. However, a significant increase in earnings is expected in 2025, bringing the P/E ratio down to 46.