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Here's How Much a $1000 Investment in Cintas Made 10 Years Ago Would Be Worth Today
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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.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and 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 (78.4% of third-quarter 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 (10.6% of third-quarter 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 11.1% of second-quarter 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Cintas, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in April 2013 would be worth $10,299.36, or a 929.94% gain, as of April 10, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 164.28% and the price of gold went up 23.71% over the same time frame.
Analysts are anticipating more upside for CTAS.
Strong segmental performances are aiding Cintas. Increased volumes are boosting the Uniform Rental and Facility Services unit’s results. Strength in the first aid cabinet service business is driving growth of the First Aid and Safety Services unit. Cintas’ efforts to reward shareholders are impressive. Last July, CTAS hiked its dividend by 21%. The company’s improved earnings and revenue forecast for fiscal 2023 is encouraging. Amid these positives, shares of the company have outperformed its industry in the past six months. However, rising cost of sales (up 11.3% in the first nine months of fiscal 2023) poses a threat to the bottom line. Selling and administrative expenses also climbed 16.6% in the same period. Foreign currency headwinds might hurt sales going forward. The company's weak liquidity position is an added woe.
The stock has jumped 5.47% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Cintas Made 10 Years Ago Would Be Worth Today
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.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and 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 (78.4% of third-quarter 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 (10.6% of third-quarter 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 11.1% of second-quarter 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Cintas, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in April 2013 would be worth $10,299.36, or a 929.94% gain, as of April 10, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 164.28% and the price of gold went up 23.71% over the same time frame.
Analysts are anticipating more upside for CTAS.
Strong segmental performances are aiding Cintas. Increased volumes are boosting the Uniform Rental and Facility Services unit’s results. Strength in the first aid cabinet service business is driving growth of the First Aid and Safety Services unit. Cintas’ efforts to reward shareholders are impressive. Last July, CTAS hiked its dividend by 21%. The company’s improved earnings and revenue forecast for fiscal 2023 is encouraging. Amid these positives, shares of the company have outperformed its industry in the past six months. However, rising cost of sales (up 11.3% in the first nine months of fiscal 2023) poses a threat to the bottom line. Selling and administrative expenses also climbed 16.6% in the same period. Foreign currency headwinds might hurt sales going forward. The company's weak liquidity position is an added woe.
The stock has jumped 5.47% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2023; the consensus estimate has moved up as well.