Stock Price & Analysis

Based on the technical indicators and recent market data, here's a concise analysis of CTAS stock:

Technical Analysis

• Current price: $204.43 with pre-market showing slight recovery at $204.73 (+0.15%)
• RSI-14 at 54.19 indicates neutral momentum
• MACD shows positive trend with MACD (1.99) > Signal (1.78)
• Stock is trading above all major moving averages (5,10,20,60,200-day SMAs)

Recent Performance

• The stock has fallen in 6 of the last 10 trading days
• Currently trading in the upper part of a falling trend channel
• Next resistance level at $207.60
• Support levels at $188.72 and $186.94

Fundamental Factors

• Cintas maintains strong business fundamentals with consistent dividend payments
• Latest quarterly dividend of $0.39 announced for March 14, 2025
• Company highlighted as one of the solid dividend growth stocks by analysts

Short-term Outlook Based on the technical setup and current market conditions, CTAS appears to be in a SELL position for the following reasons:

• Sell signal triggered from pivot top point on February 19, 2025
• Volume increased on falling prices, which could indicate further downside
• Technical indicators suggest potential -7.09% decline over next 3 months with price target range of $160.94-$192.88

Based on the provided data and analyst forecasts, here is the price prediction analysis for CTAS stock in 2025:

Technical Analysis

The stock is currently trading at $204.43 with a moderately bullish trend. Key technical indicators show:

• RSI(14) at 54.19 indicates neutral momentum
• MACD is positive at 1.99 with bullish divergence
• Stock is trading above key moving averages (SMA50: $198.25, SMA200: $195.70)

Fundamental Drivers

• Strong earnings growth forecast: EPS expected to grow 8.6% annually through 2025
• Revenue projected to reach $10.3B in 2025, representing 6.9% growth
• Healthy return on equity forecast of 32.1%

Price Targets for 2025

Based on multiple analyst forecasts:

• Conservative target: $184.00 (-9.99% downside)
• Average target: $211.25 (+3.34% upside)
• Bullish target: $245.00 (+19.85% upside)

Key Growth Catalysts

• Strong position in uniform rental and facility services segment
• Expansion in first aid and safety services
• Potential acquisition opportunities, like the recent UniFirst proposal

Risks

• Valuation concerns at current levels
• Economic slowdown impact on business customers
• Integration risks from potential acquisitions

Conclusion

Based on the analysis, CTAS stock is likely to reach $211-236 by end of 2025, representing 3-15% upside from current levels. This forecast is supported by:

1. Consistent earnings and revenue growth trajectory
2. Strong market position in core segments
3. Multiple expansion potential from acquisitions
4. Technical indicators showing positive momentum

The S1 support level for CTAS Stock is $202.38 ,The R1 resistant level for CTAS Stock is $207.76.

As of the end of day on 2025-02-27, the price of CTAS Stock was $203.38.

The target price for CTAS Stock according to analyst rating is 208.57, with the highest price target at 245.00 and the lowest at 184.00. Analysts have a Moderate Buy rating on CTAS Stock overall.

The market cap of CTAS is $82.1B.

Based on the provided data and context, here is my analysis of whether CTAS is overvalued:

Valuation Analysis:

CTAS appears significantly overvalued based on multiple valuation metrics:

1. The current P/E ratio of 48.4x is substantially higher than the industry average of 41.7x

2. The stock trades at a P/B ratio of 19.2x, far above the industry average of 5.2x

3. The current price of $204.43 is approximately 28% above its intrinsic value estimate of $143 based on discounted cash flow analysis

4. The stock's EV/EBITDA of 31.6x indicates a premium valuation compared to historical levels

5. The current price is trading above the mean analyst price target of $194.84

Conclusion: CTAS is currently overvalued based on both absolute and relative valuation metrics, with the stock trading at significant premiums across multiple valuation measures. The combination of rich valuation multiples and price levels above intrinsic value estimates suggests limited upside potential at current levels.

Cintas Corporation develops uniform programs using fabric. The Company helps businesses of all types and sizes, primarily in the United States, as well as Canada and Latin America. The Company operates through two segments: Uniform Rental and Facility Services segment and the First Aid and Safety Services segment. The Uniform Rental and Facility Services segment consists of the rental and servicing of uniforms and other garments, including flame resistant clothing, mats, mops and shop towels and other ancillary items. This segment also includes restroom cleaning services and supplies and the sale of items from its catalogs to its customers. The First Aid and Safety Services segment consists of first aid and safety products and services. The remainder of its segments, which consists of the Fire Protection Services segment and the Uniform Direct Sale segment, is included in All Other. It provides its products and services to small service and manufacturing companies and to corporations.

Based on the provided data and references, here is the price prediction analysis for CTAS stock by 2030:

Price Target Analysis for 2030

CTAS stock is projected to reach $332.42 by 2030, representing a 62.6% increase from the current price of $204.43. This forecast is supported by several key factors:

Growth Drivers:

1. Market Leadership Position:

• Maintains ~30% market share in uniform rental market
• Benefits from route density advantages providing operational efficiency
• Market growing ~6% annually organically

2. Financial Performance:

• Revenue growth CAGR of 6.8-8.0% expected through 2025
• Strong margin expansion with operating margins improving 160bps to 22.2%
• Consistent earnings growth of 7.3-10.6% projected

Current Technical Position:

• RSI(14) at 54.19 indicates neutral momentum
• Trading above key moving averages (SMA200 at $195.53)
• Fibonacci resistance levels suggest room for upside with R3 at $212.08

Key Risks:

• Economic cyclicality could impact growth
• Valuation currently appears stretched compared to historical averages
• Competition in uniform rental market

The 2030 price target of $332.42 appears reasonable given CTAS's strong market position, consistent growth profile, and operational efficiency advantages. However, investors should monitor valuation levels and economic conditions.

CTAS has a total of 44500 employees.