Scott Waxler Blog | Cintas Corporation - A Fair Value Report | Talkmarkets
Equities Research
Contributor's Links: Wax Ink

I manage Wax, an equities valuation company not licensed or registered with any government agency, producing equities valuation reports for about 300 public traded companies annually.

These valuation reports are intended to assist individual investors with their decisions ... more

Cintas Corporation - A Fair Value Report

Date: Saturday, August 1, 2020 9:05 AM EDT

My Disclaimer
I am a value investor. I am not a licensed or registered investment professional. I currently have NO investment position in the company mentioned in this report. Financial statement data was obtained from the company’s most recent SEC 10-K filing.

Past and future gains contained herein are based on actual and anticipated earnings, actual and anticipated dividends, and actual and anticipated price appreciation. Valuations, while given as a specific amount, are always within a valuation range. Investors should be aware that any investment has the potential for loss, and past performance is no guarantee of future results.

The intent of this report is to provide the reader with a brief overview of my various company valuations so they can independently determine their current level of investment interest.

What They Do
Cintas Corporation operates in several business segments; Rental Uniforms which rents and services uniforms, Ancillary Products which sells mats, mops, shop towels and other ancillary items, Uniform Direct Sales which sells uniforms and related items, the First Aid, Safety and Fire Protection Services which provides consists of first aid, safety and fire protection products and services, and Document Management Services which provides document destruction, document imaging, and document retention services. Industry peers include Aramark Corporation (NYSE: ARMK) and Compass Group plc (OTCMKTS: CMPGF).

Recent Business Acquisitions
In February 2020, the company purchased uniform provider Doritex Corporation for $53.7 million.

Recent Business Divestitures
The company listed no new business divestitures in its most recent SEC 10-K filing.

Subsequent Events
There were no subsequent events between the company’s fiscal year end and the filing of its most recent 10-K.

Short-Term Target
My current short-term target for the stock is $283.04 with an initial trailing stop set at $297.34. Based on a recent price of $301.87, upward price movement will find resistance at $304.26. Downward price movement will find support at $283.65 and again at $273.26, with final support found at $264.37.

Volatility Adjustment
There are different metrics available to help investors determine the volatility of a particular stock as compared to the volatility of the market as a whole. To me, the beta ratio is the metric that is the most representative of a stock’s volatility. A beta ratio of less than 1 means that the security’s price will be less volatile than the market, while a beta ratio greater than 1 indicates that the security’s price will be more volatile than the market. Basis my current beta ratio for this stock of 1.50, my volatility adjustment to recent pricing is $101 per share, making my current volatility adjusted price $201.

1 2 3 4
View single page >> |
Disclaimer: This and other personal blog posts are not reviewed, monitored or endorsed by TalkMarkets. The content is solely the view of the author and TalkMarkets is not responsible for the content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.


Leave a comment to automatically be entered into our contest to win a free Echo Show.