AGB 2022.3 - Cintas (CTAS)

Scale Advantages + Process Power

Subscribe to AGB - One analysis of a good business every three weeks.

Cintas

Even after 50+ years, Cintas’ founding family still has sizeable ownership stake at ~14% of the shares outstanding. Scott Farmer is the executive chairman, retiring from his CEO position of 18 years in May of 2021. Whether it’s the family dynamic or some other reason, it seems like the company isn’t too keen on giving out many details about the business (there is no investor presentation and Cintas rarely attends conferences). Interestingly, other companies we’ve analyzed like this were Copart and Costar Group.

Cintas is the leading provider of uniform rental programs to businesses in North America. The company also participates in direct uniform sales and sells products and services related to facilities, first aid/safety and fire protection. Cintas services over 1M enterprise and SMB customers via 11k local routes in over 330 cities. Most industry verticals are represented in the company’s list of customers, b…