Key Takeaways:
- Execution Excellence: Cintas delivered a record Q2 fiscal 2026 revenue of $2.8 billion, up 9.3%, and operating margins hit all-time highs.
- Price Projection: Based on current momentum, the stock could reach $244 by May 2028.
- Potential Gains: This target implies a total return of 26% from the current price of $193.
- Annual Return: Investors could see roughly 10% growth per year over the next 2.4 years.
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Cintas (CTAS) isn’t just renting uniforms—it’s building a resilient business model that grows regardless of economic conditions.
With over 1 million customers and retention rates at all-time highs, the company has proven its ability to outpace GDP and jobs growth for decades.
The numbers back this up. Q2 fiscal 2026 revenue hit $2.8 billion, growing 8.6% organically. Even more impressive, the company’s operating margin reached 23.4%, an all-time high.
Each of Cintas’ three route-based businesses posted strong growth, with First Aid and Safety Services leading at 14.1%.
Despite raising guidance for the year, CTAS stock is trading at $193, creating an opportunity for investors who understand the company’s competitive advantages.
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What the Model Says for Cintas Stock
We analyzed Cintas’ future through its multi-lever growth strategy. By expanding in key verticals, cross-selling to existing customers, and maintaining industry-leading retention, Cintas is positioned to keep outperforming broader economic trends.
Using a forecast of 7.6% annual revenue growth and 23.6% operating margins, our model projects the stock will rise to $244 within 2.4 years. This assumes a 37.5x Price-to-Earnings (P/E) multiple.
That matches Cintas’ current P/E of 37.5x. The company’s premium valuation reflects its predictable growth, margin expansion, and recession-resistant business model. As long as Cintas maintains its execution track record, this multiple should hold.
Our Valuation Assumptions
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for Cintas stock:
1. Revenue Growth: 7.6%
Cintas has multiple growth engines firing simultaneously, reducing dependence on any single factor.
No-Programmer Conversions: Over two-thirds of new business comes from companies that weren’t using programmed services before. With 16 million businesses in the U.S. and Canada but only 1 million customers, the addressable market remains massive.
Key Verticals: Healthcare, hospitality, education, and state and local government are growing faster than the overall business. Healthcare alone accounts for 8% of total revenue, and these four verticals combined account for 11%, with significant runway ahead.
Cross-Selling: Cintas is still early in cross-selling its product portfolio. A customer might start with uniform rental, then add restroom supplies, first aid services, and fire protection—each adding to revenue without requiring new customer acquisition.
2. Operating margins: 23.6%
Cintas’ margin profile reflects operational excellence and smart cost management.
Supply Chain Advantage: The company sources globally, with 90% of products having two or more supplier options. This flexibility helps navigate tariff impacts and cost pressures without simply passing expenses to customers.
Technology Investments: Smart Truck and other tech initiatives are improving productivity across operations. These tools help employees better serve customers while reducing delivery costs and improving inventory management.
Incremental Margins: The company targets 25-35% incremental margins, allowing continued investment in growth while expanding profitability. Q2 delivered 27% incremental margins, right in the sweet spot.
3. Exit P/E Multiple: 37.5x
The market values Cintas at a significant premium, and for good reason.
Quality Premium: Cintas has grown its profit in 54 of the last 56 years. That consistency commands a premium valuation, especially as the business model proves resilient through various economic cycles.
Competitive Moat: Culture is Cintas’ ultimate competitive advantage. All-time high retention rates and the ability to win no-programmer business reflect execution that competitors struggle to match.
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What Happens If Things Go Better or Worse?
Business services companies face uncertainty from employment trends and economic conditions. Here is how Cintas stock might perform in different scenarios through 2028:
- Low Case: If revenue growth slows to 6.1% and margins compress to 17.4%, the stock still offers a 3% annual return.
- Mid Case: With 7.6% growth and 23.6% margins (our base assumptions), we expect an 8% annual return.
- High Case: If execution remains strong and Cintas captures 19.3% margins while growing at 7.4%, returns could hit 13% annually.
See what analysts think about Cintas stock right now (Free with TIKR) >>>
The range reflects different economic environments. In the low case, a weaker job market pressures uniform add-stops and pricing power. In the high case, strong execution and operational leverage drive faster margin expansion than expected.
How Much Upside Does Cintas Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
