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, but the highest concentration is in manufacturing, auto, healthcare, food services and education.
Amazing piece. Do you foresee an attractive buying opportunity coming in this economic environment - gas, wage increase, decent likelihood of a stagnant economy in the future, etc. Their stock seems to have done relatively okay YTD. They compete on price so it doesn't seem like they can raise their prices to offset either. Any thoughts on obsolescence risk through technology (perhaps loss of advantage with electric vehicles, maybe self driving trucks in the distant future)?
Fantastic write up. I am always looking forward to the next release. How much of Cintas' contracts are through either voluntary customer sign / reach out vs Cintas bidding on contracts with Aramark and UniFirst? And is it also possible to pin down how much of Cintas' revenues, gross profit, or EBITDA occur in areas where Cintas has a regional monopoly? Thanks!
What's the definition of one route? That's a bit confusing if you calculate customers per route and vehicles per route and take into consideration of the size of cintas trucks and route drivers' 8hs working time per work day.
Very interesting story, I think here we have a winner takes all, with great roi and a lot of scale economies; best time to buy a company like this would be of course during recessions, I may say this is pretty antifragile so it will back soon to its speed.Thaks for sharing
AGB 2022.3 - Cintas (CTAS)
Amazing piece. Do you foresee an attractive buying opportunity coming in this economic environment - gas, wage increase, decent likelihood of a stagnant economy in the future, etc. Their stock seems to have done relatively okay YTD. They compete on price so it doesn't seem like they can raise their prices to offset either. Any thoughts on obsolescence risk through technology (perhaps loss of advantage with electric vehicles, maybe self driving trucks in the distant future)?
always enjoy reading your write ups
Nice write up.
Fantastic write up. I am always looking forward to the next release. How much of Cintas' contracts are through either voluntary customer sign / reach out vs Cintas bidding on contracts with Aramark and UniFirst? And is it also possible to pin down how much of Cintas' revenues, gross profit, or EBITDA occur in areas where Cintas has a regional monopoly? Thanks!
What's the definition of one route? That's a bit confusing if you calculate customers per route and vehicles per route and take into consideration of the size of cintas trucks and route drivers' 8hs working time per work day.
Very interesting story, I think here we have a winner takes all, with great roi and a lot of scale economies; best time to buy a company like this would be of course during recessions, I may say this is pretty antifragile so it will back soon to its speed.Thaks for sharing