Is Cintas Stock a Buy?
There's long been a strong case for arguing that corporate uniform services company Cintas (NASDAQ: CTAS) is a set to be a long-term beneficiary of the COVID-19 pandemic. There's little doubt that there will be an extra emphasis on companies ensuring safe and healthy working environments, and that plays well to Ciintas' offerings. That said, the stock is up nearly 72% since the end of March, so it's time to ask whether it remains a good value or not.
Cintas generates revenue from two main sources, namely uniform rental and facility services, and first aid and safety services. For reference, the industrial stock's fiscal year ends on May 31.
The uniform rental and facility services business has taken a near-term hit as lockdown measures have closed businesses and reduced end demand. As the economy opens up again, however, it's likely that end demand will improve. Moreover, the increased emphasis on cleanliness could spur demand for companies to outsource uniform provision and cleaning to Cintas.
Source Fool.com
