Cintas Corporation (CTAS) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Cintas Corporation

Updated on October 25, 2026 · accounts published on September 23, 2026

A highly profitable business with record operating margins and a solid balance sheet

Cintas trades at a P/E of 43.0 over the last 12 months, 67 % above its sector median, with a record 23 % operating margin in fiscal 2026.

• Is Cintas expensive or cheap? Cintas trades at a P/E 67 % above its sector median, and over the last decade its P/E was lower than today 77 % of the time.
• How is the business doing? The fiscal 2026 operating margin of 23 % was the highest in 12 years, against an 18 % average since 2015.
• How strong is the balance sheet? Net debt is 0.8× EBITDA in fiscal 2026, equal to under 3 % of the share price, and the Altman Z of 11.5 is in the safe zone.
• What to expect from the next earnings? Next results on December 17, 2026: analysts expect EPS of $1.36, after beats in 7 of the last 8 quarters.
• Does Cintas turn its margin into cash, and at what cycle multiple does it trade? Free cash flow was 94 % of net income in fiscal 2026, but the EV/EBITDA of 27.0× is above its seven-year average of 24.2×.

Is Cintas expensive or cheap?

Over the last 12 months Cintas trades at a P/E of 43.0. That is 13 % above its ten-year median of 38.1 and far above the sector median of 25.8 across 297 companies. Over the past decade its P/E ranged from 16.1 to 58.9, and the stock traded at a lower P/E than today 77 % of the time. The earnings yield is 2.3 % and the free cash flow yield 2.2 %, thin returns for anyone buying at this price. The shares are up 19 % in 12 months and sit within 1 % of their 52-week high of $225.93.

How is the business doing?

Revenue rose 8.9 % and EPS 11.6 % over the last 12 months, so profits are growing faster than sales. The operating margin reached 23.1 % in fiscal 2026, the highest of the 12 fiscal years since 2015, against an average of 18.4 % over that period. Returns on capital are strong: ROIC of 23.8 % over the last 12 months is 14.9 points above the sector median of 8.8 %. It has stayed above 10 % in 9 of the last 10 fiscal years, with the weakest year at 8.2 % in 2017. ROE stands at 42 % over the last 12 months.

How strong is the balance sheet?

Net debt was $6.29 per share in fiscal 2026 ($7.01 of debt minus $0.72 of cash). That equals 2.9 % of the current price and 0.8× EBITDA, well below the 3× ceiling that marks a healthy industrial. Over the last 12 months debt to equity is 0.52 and the current ratio 1.45. The Altman Z of 11.5 sits deep in the safe zone above 2.99, and the Piotroski score is 8 of 9. Shareholder returns are modest: a 0.9 % dividend yield, raised for 4 consecutive fiscal years through 2026. The payout is 35 % of earnings, which leaves room for further raises.

What to expect from the next earnings?

On September 23, 2026 Cintas reported EPS of $1.39 against $1.35 expected, a 3.0 % beat, and it has topped EPS estimates in 7 of the last 8 quarters. For the quarter due on December 17, 2026, the consensus is $1.36. Expectations are edging up: the 2027 EPS consensus rose 0.8 % in the last 30 days, from $5.50 to $5.54 across 13 analysts, while the revenue consensus barely moved. Of the 30 analysts covering the stock, 12 rate it a buy, 16 a hold and 2 a sell. That lukewarm stance fits a share price already near its high.

Does Cintas turn its margin into cash, and at what cycle multiple does it trade?

Industrials are semi-cyclical, so the measures that count are the operating margin, how much profit turns into cash and multiples compared with the company's own history. Cintas converted 94.1 % of net income into free cash flow in fiscal 2026, above the healthy 85 % mark. It grew revenue per share 10.6 % a year over fiscal 2021-2026, against a 6 % threshold. The one miss is capex at 3.5 % of revenue, below the healthy 4-8 % range. On price, the EV/EBITDA of 27.0× and the P/E of 43.0 over the last 12 months both exceed 110 % of their own averages (24.2× and 37.6), the line that flags expensive.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.