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Cintas (STU:CIT) GF Value Rank : 3 (As of Apr. 11, 2025)


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What is Cintas GF Value Rank?

Cintas has the GF Value Rank of 3.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Cintas's GF Value Rank

For the Specialty Business Services subindustry, Cintas's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cintas's GF Value Rank Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Cintas's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Cintas's GF Value Rank falls into.


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Cintas GF Value Rank Related Terms

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Cintas Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Cintas Corp (STU:CIT) » Definitions » GF Value Rank
Comparable Companies
CPRT GPN ULS ARMK DLB AMTM CBZ MMS UNF ABM LSE:REL TSX:TRI XAMS:WKL TSX:RBA ASX:BXB LSE:RTO LSE:ITRK XPAR:SW XAMS:INPST XPAR:TEP
Traded in Other Exchanges
CTAS:USA CTAS:Mexico 0HYJ:UK CIT:Germany C1TA34:Brazil CTAS:Austria
Address
6800 Cintas Boulevard, P.O. Box 625737, Cincinnati, OH, USA, 45262-5737
Website
https://www.cintas.com
Cintas has roots tracing back to 1929, during which the Farmer family cleaned and re-sold dirty rags to manufacturing plants in Ohio. The firm has grown its business organically and through acquisitions, and today Cintas acts as a one-stop outsourcing partner for businesses. Cintas will design, manufacture, collect, and clean every employee uniform for a small weekly sum, taking on the upfront capital expense itself. In the same stop, Cintas can also replace soiled or depleted mats, mops, trash liners, towels, first aid, fire, and cleaning products. Businesses value an outsourcing partner like Cintas as it simplifies operations and leaves noncore tasks with high regulatory standards in the hands of professionals.