Assessing Cintas Shares After Strong Quarterly Results and Updated 2025 Outlook

If you are weighing what to do with Cintas stock right now, you are not alone. In a market that seems to swing between optimism and caution overnight, Cintas has managed to keep investors on their toes. The company’s share price closed most recently at $204.24, and while that is well off the highs from earlier in the year, it still reflects an impressive 12.2% gain year-to-date. Over just the past week, the stock picked up 2.1%, despite a broader market that has felt a little jittery amid shifting economic sentiment and sector shake-ups.

Stepping back, the real story emerges over multiple years. If you have been along for the ride over the past three or five years, you will have seen gains of 116.1% and 157.3%, respectively, even though returns for the past month and year have been less flashy at -4.2% and 1.7%. These numbers hint at how growth and risk perceptions have evolved for Cintas, frequently boosted by its reputation for execution and solid market positioning in facility services and uniform rentals.

But what about the valuation? This is where things get interesting. Based on six widely recognized valuation checks, Cintas currently passes none of them as undervalued, coming in with a valuation score of just 0. That can feel like a red flag or just the start of a deeper conversation, depending on where you stand as an investor.

To break down these valuation approaches in more detail, it may help to explore whether there is an even smarter way to judge the true worth of Cintas in today’s market.

Cintas scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Cintas Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s dollars. For Cintas, this model uses the “2 Stage Free Cash Flow to Equity” approach, taking into account both short-term analyst forecasts and longer-term extrapolations.

Cintas generated $1.69 billion in free cash flow over the last twelve months. Analyst estimates project this will steadily rise, with free cash flow expected to reach $2.37 billion by 2028. Looking further out, extrapolated estimates suggest Cintas could be generating over $3.1 billion by 2035. All figures are quoted in US dollars.

Despite this steady growth outlook, the DCF model calculates Cintas’s intrinsic value at $152.86 per share, which is about 33.6% below its recent closing price of $204.24. This means, by the numbers, the stock is currently overvalued according to this methodology.

Result: OVERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Cintas.

Our Discounted Cash Flow (DCF) analysis suggests Cintas may be overvalued by 33.6%. Find undervalued stocks or create your own screener to find better value opportunities.

Approach 2: Cintas Price vs Earnings

The Price-to-Earnings (PE) ratio is a widely used benchmark for valuing profitable companies like Cintas because it directly links a company’s stock price to its earnings. For businesses with steady profits and predictable growth, the PE ratio offers a clear snapshot of how much investors are willing to pay for a dollar of earnings, providing a useful lens for comparison.

However, what counts as a “normal” or “fair” PE ratio can shift with expectations around growth and risk. Companies with stronger growth prospects or lower perceived risks often command higher PE ratios, while slower-growing or riskier firms are typically valued at lower multiples. This context is crucial for drawing meaningful conclusions from any PE comparison.

Looking at Cintas, its current PE ratio is 44.8x. This stands noticeably above the industry average for Commercial Services of 27.9x, and it also exceeds the peer average of 34.7x. But simply benchmarking against industry or peers can miss the nuances. Every company has a unique blend of growth rates, margins, size, and risk. That’s why Simply Wall St calculates a “Fair PE Ratio,” which considers factors like Cintas’s earnings growth, profit margins, market cap, industry profile, and risk profile. For Cintas, the Fair Ratio is set at 32.4x.

Comparing this Fair Ratio against Cintas’s actual PE makes it clear: the stock trades at a premium relative to what would be considered fair based on its financials and sector, indicating the market is pricing in higher expectations than these fundamentals alone suggest.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Cintas Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is your story about a company. It is the perspective you bring to Cintas based on the business changes you see, your own expectations for revenue, earnings, and profit margins, and what you believe the company is truly worth. Narratives take the next step by linking your perspective to a tangible financial forecast and, from there, to a calculated fair value, so you can easily compare it to the current share price.

Millions of investors on Simply Wall St share, debate, and update their Narratives in the Community page, making it an accessible and powerful tool for anyone. Narratives are dynamically refreshed when new information, like quarterly earnings or major company news, is released, helping you keep your view relevant without the need for manual recalculation.

For example, right now the most bullish Cintas Narrative values the stock at $257 per share, expecting margin expansion and robust recurring revenue growth from new services, while the most bearish Narrative, at $172 per share, warns that shifting work patterns and automation could erode demand. By comparing these user-created fair values to today's price, Narratives help you decide at a glance whether Cintas is a buy, hold, or sell, and give you the story behind the numbers.

Do you think there's more to the story for Cintas? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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