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If You Invested $1000 in Cintas a Decade Ago, This is How Much It'd Be Worth Now

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with 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 (78.2% of 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 (10.8% of 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% of 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

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Cintas ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in September 2013 would be worth $10,357.95, or a 935.79% gain, as of September 14, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.

The S&P 500 rose 164.66% and the price of gold increased 38.54% over the same time frame in comparison.

Looking ahead, analysts are expecting more upside for CTAS.

Strong segmental performances have been aiding Cintas. Increased productivity level and new product launches are boosting the Uniform Rental and Facility Services segment’s performances. Strength in the health and wellness businesses and high customer retention levels are driving the growth of the First Aid and Safety Services segment. The company's focus on enhancement of its product portfolio holds promise. Cintas’ efforts to reward shareholders are impressive. Amid these positives, shares of the company have outperformed its industry in the year-to-date period. However, the rising cost of sales, and increasing selling and administrative expenses pose a threat to the company’s bottom line. High tax rate is an added concern for Cintas. Also, foreign currency headwinds are weighing on the company's top line.

Over the past four weeks, shares have rallied 5%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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