Cintas Co. Announces Quarterly Dividend of $0.39 (NASDAQ:CTAS)

Cintas Co. (NASDAQ:CTAS) declared a quarterly dividend on Tuesday, October 29th, RTT News reports. Stockholders of record on Friday, November 15th will be paid a dividend of 0.39 per share by the business services provider on Friday, December 13th. This represents a $1.56 annualized dividend and a dividend yield of 0.75%.

Cintas has increased its dividend by an average of 92.6% annually over the last three years and has increased its dividend every year for the last 42 years. Cintas has a dividend payout ratio of 33.3% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cintas to earn $4.62 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 33.8%.

Cintas Stock Performance

CTAS traded down $1.52 during trading hours on Wednesday, reaching $207.62. The company’s stock had a trading volume of 35,582 shares, compared to its average volume of 1,453,487. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.33 and a current ratio of 1.53. The company’s 50-day moving average is $217.14 and its 200-day moving average is $191.17. Cintas has a 52 week low of $125.62 and a 52 week high of $215.37. The firm has a market cap of $21.07 billion, a PE ratio of 14.44, a price-to-earnings-growth ratio of 4.12 and a beta of 1.32.

Cintas (NASDAQ:CTAS) last posted its earnings results on Wednesday, September 25th. The business services provider reported $1.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.00 by $0.10. The company had revenue of $2.50 billion during the quarter, compared to analysts’ expectations of $2.49 billion. Cintas had a net margin of 16.80% and a return on equity of 39.56%. Cintas’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the company posted $3.70 EPS. On average, equities analysts forecast that Cintas will post 4.23 EPS for the current year.

Cintas announced that its Board of Directors has initiated a share repurchase program on Tuesday, July 23rd that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the business services provider to buy up to 1.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several analysts recently weighed in on CTAS shares. Royal Bank of Canada lifted their price target on Cintas from $181.00 to $215.00 and gave the stock a “sector perform” rating in a report on Thursday, September 26th. The Goldman Sachs Group boosted their target price on shares of Cintas from $212.00 to $236.00 and gave the company a “buy” rating in a research report on Thursday, September 26th. Truist Financial raised their price target on shares of Cintas from $212.50 to $225.00 and gave the stock a “buy” rating in a research report on Tuesday, September 17th. Redburn Atlantic started coverage on shares of Cintas in a report on Friday, August 9th. They issued a “neutral” rating and a $167.50 price objective for the company. Finally, Baird R W cut shares of Cintas from a “strong-buy” rating to a “hold” rating in a report on Friday, July 19th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $199.63.

About Cintas

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.