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

Cintas Co. (NASDAQ:CTAS - Get Free Report) 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 dividend on an annualized basis and a dividend yield of 0.75%.

Cintas has raised its dividend payment by an average of 92.6% per year over the last three years and has raised its dividend annually for the last 42 consecutive 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 Price Performance

CTAS traded up $0.55 on Tuesday, reaching $209.14. The company had a trading volume of 1,285,987 shares, compared to its average volume of 1,460,269. The company has a market capitalization of $21.22 billion, a P/E ratio of 14.44, a PEG ratio of 4.12 and a beta of 1.32. The company has a current ratio of 1.53, a quick ratio of 1.33 and a debt-to-equity ratio of 0.50. The company has a fifty day moving average of $217.14 and a 200-day moving average of $191.17. Cintas has a one year low of $124.07 and a one year high of $215.37.

Cintas (NASDAQ:CTAS - Get Free Report) last posted its quarterly earnings data on Wednesday, September 25th. The business services provider reported $1.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.10. Cintas had a net margin of 16.80% and a return on equity of 39.56%. The business had revenue of $2.50 billion during the quarter, compared to analysts' expectations of $2.49 billion. During the same period last year, the firm posted $3.70 earnings per share. The business's revenue was up 6.8% on a year-over-year basis. As a group, equities research analysts anticipate that Cintas will post 4.23 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CTAS. Wells Fargo & Company lifted their target price on Cintas from $184.00 to $191.00 and gave the stock an "underweight" rating in a report on Thursday, September 26th. 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 research note on Thursday, September 26th. Truist Financial upped their price objective on shares of Cintas from $212.50 to $225.00 and gave the company a "buy" rating in a research note on Tuesday, September 17th. Morgan Stanley lifted their target price on shares of Cintas from $170.00 to $185.00 and gave the stock an "equal weight" rating in a research report on Thursday, September 26th. Finally, Jefferies Financial Group reduced their price target on shares of Cintas from $730.00 to $200.00 and set a "hold" rating for the company in a research report on Thursday, September 26th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $199.63.

Cintas declared that its board has authorized a stock buyback plan on Tuesday, July 23rd that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the business services provider to buy up to 1.3% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its stock is undervalued.

Cintas Company Profile

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.