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Stock trading, specially in the IHUB sense which is mostly crap shooting based on whims, hunches and charting, doesn't work.
Academic research suggests "The More You Trade The More You Lose."
I mod IHUB's two Berkshire Hathaway boards.
I look forward to the end-of-year dividend announcement. My stock "trading" days are coming to an end because I'm tired of the chase.
Be aware that CTAS only pays a dividend once a year which is extremely unusual.
Well you made a fast profit. A key beauty about CTAS is none of our local penny players follow it which is often a good sign. CTAS is a classic Buffett stock although it doesn't have much of a moat.
As a new holder of CTAS, I'm studying the company further. I'll post here my findings.
Cintas Corporation (Cintas, Company, we, us or our), a Washington corporation, helps more than one million businesses of all types and sizes, primarily in North America, as well as Latin America, Europe and Asia, get Ready™ to open their doors with confidence every day by providing a wide range of products and services that enhance our customers’ image and help keep their facilities and employees clean, safe and looking their best. With products and services including uniforms, floor care, restroom supplies, first aid and safety products, fire extinguishers and testing, and safety and compliance training, Cintas helps customers get Ready for the Workday™. Cintas was founded in 1968 by Richard T. Farmer, currently the Chairman Emeritus of the Board of Directors, when he left his family's industrial laundry business in order to develop uniform programs using an exclusive new fabric. In the early 1970's, Cintas acquired the family industrial laundry business. Over the years, Cintas developed additional products and services that complemented its core uniform business and broadened the scope of products and services available to its customers.
CTAS is up 324% in past 5 years, not counting its dividends. Do you realize how extraordinary that growth is?
Based on their last reported earnings, if you keep the 29-30 PE it puts the pps around 209-210, which we are basically at. I’m already ready for next quarter. I keep seeing their trucks everywhere. Their fire prevention side should stay strong while construction is good. And their uniform and business services should too as long as businesses are doing well. Payrolls expanding, lower unemployment, and construction is up should be a good recipe. Are you sensing a top for some reason?
To me, the question is what is it going to take to expand the multiple from the 29-30 range? Are they even focused on action that would expand the PE or are they just focused on steady earnings growth?
Just noticed that CTAS burst thru $200. $206 in fact. I was actually thinking of selling some of mine last week.
IHUB had wrong info on the PE ratio. Yahoo gives it as 28.7 which is in line with numbers I've seen in recent years. Still not dirt cheap.
Let me double check that. I have to run now for work. I thought the PE was around 30, too. Div wouldn't affect the PE . I've seen a lot of errors made in regard to CTAS financials. Many sources report the div as a quarterly number which it isn't, and multiply it by four. Easy mistake to make.
I don't know of any other major corp that only pays out once a year. And a PE of 42 seems ridiculously high.
later...
No huge shortfall that quarter. They even beat estimates. But the earnings were lower that quarter compared to previous and since. The estimates by the street were even low so I was just wondering why.
Is that 42 PE with or without the dividend factored into the earnings? For 2018 the PE has been around 30 but if you factor out the dividend it’s still around 40.
I just started my position last December. I’ve been pleased so far. Thinking about adding more tomorrow going into earnings on Thursday. I see their trucks everywhere and I’ve been noticing their first aid kits in every fast food drive thru window I’ve been in the last few days.
Any idea why their earnings came in low for Q4 FY2017?
"Not a bad one to be in?" Look at the 30-40 year chart. It's one of the very, very best, but largely unknown still. Up >100X since the 1980s.
Only stock I know of that pays its dividend just once a year.
Slow, steady, and consistent. Not a bad one to be in. Wish it got more coverage though.
Yet, another CTAS div increase!
Cintas (NASDAQ:CTAS) declares $1.62/share annual dividend, 21.8% increase from prior dividend of $1.33.
Forward yield 1.07%
$145 on big earnings beat. Another record high.
Not much Margin Of Safety for Cintas $CTAS going into earnings Wednesday:
Fair Value Source
Div Increase: "Cintas gives shareholders a big reward"
"Cintas Corp. gave its shareholders a lucrative gift by announcing it will increase its annual dividend by a whopping 27 percent.
Cintas said Tuesday it will pay shareholders $1.33 per share on Dec. 2, when it pays its once-a-year dividend. That’s up from $1.05 that it paid a year ago."
http://www.bizjournals.com/cincinnati/news/2016/10/18/cintas-gives-shareholders-a-big-reward.html?ana=yahoo
CTAS soars $7 on plan to buy competitor G&K Services
"Work uniform company Cintas Corp. has entered an agreement to acquire G&K Services Inc. in a deal estimated to be worth $2.2 billion. Minnetonka, Minn.-based G&K is a provider of branded uniform and facility services programs in the U.S. and Canada. It has an annual revenue of about $1 billion and will bring the combined companies to a total of more than 1 billion business customers. Savings are expected to range from $130 million to $140 million in the fourth year after closing, according to Cintas. Cintas has three Milwaukee-area locations — in Milwaukee, Franklin and Menomonee Falls — while G&K has one area location in Menomonee Falls. The deal is expected to contribute to strong organic growth"
Soaring in AH trading on very impressive conference call.
!!! Cintas (NASDAQ:CTAS): FQ3 EPS of $1.05 beats by $0.10.
Revenue of $1.22B (+9.9% Y/Y) beats by $20M
"Cintas Hikes Annual Dividend by 23.5% on Strong Cash Flow"
"Business services provider Cintas Corporation CTAS recently announced a 23.5% year-over-year hike in its annual dividend payout to $1.05 per share. The dividend is payable on Dec 4 to shareholders of record as of Nov 6.
Based on the closing price of $90.68 on Oct 14, 2015, the proposed dividend offers a yield of approximately 1.1%. The dividend hike is part of the long-term strategy of the company to return significant free cash flow to shareholders and represents the 32nd consecutive year in which it has been raised."
http://finance.yahoo.com/news/cintas-hikes-annual-dividend-23-155003594.html
CTAS: A stunning winner for years and still soaring. Naturally it has no following on IHUB (although it's fairly popular on SA).
"Cintas' Shares Soar To New All-Time Highs Following Its Q2 Earnings Beat"
"Summary
•Q2 2015 earnings were released on December 18.
•Earnings per share and revenue surpassed analysts' expectations.
•The company raised its full year earnings per share outlook.
•The stock has reacted by rallying over 5% higher.
Cintas Corporation (NASDAQ: CTAS), the largest provider of corporate identity uniform programs to businesses in North America, released second quarter earnings after the market closed on December 18, with both earnings per share and revenue beating expectations, and its stock has responded accordingly by rallying more than 5%; let's take a closer look at the quarterly results and the company's outlook going forward to determine if we should buy into this rally or if we should look elsewhere for an investment today..."
http://seekingalpha.com/article/2769135-cintas-shares-soar-to-new-all-time-highs-following-its-q2-earnings-beat
It looks like someone needed money quick.
GLTA
Bob
CTAS - Cintas Corporation Announces Fiscal 2013 Third Quarter Results
News Link
GLTA
Bob
CTAS - OSHA Recognizes Cintas in Statesville, NC with Highest Safety Designation
News Link
GLTA
Bob
CTAS - Cintas Employee-Partner Receives Prestigious “Vendor of the Year” Award from the Restaurant Facility Management Association
News Link
GLTA
Bob
CTAS - Pit Stop: 6 Spring Break Tips to Help Identify “Where to Wee”
News Link
GLTA
Bob
CTAS - Cintas Corporation Releases 2013 Uniform Book
News Link
GLTA
Bob
CTAS - Cintas Ranks #1 on List of Best Service Companies to Sell For
News Link
GLTA
Bob
CTAS - Cintas Tile and Carpet Deep Cleaning Service Receives Stamp of Approval from the National Floor Safety Institute
News Link
GLTA
Bob
CTAS - Cintas to the Rescue on Spike TV’s “Bar Rescue”
News Link
GLTA
Bob
CTAS - Cintas Corporation Expands Uniform Services in Europe
News Link
GLTA
Bob
CTAS - Cintas Corporation Announces Webcast for Second Quarter FY2013 Results
News Link
GLTA
Bob
CTAS is a $5B company. It is following today's pattern for the greater market.
GLTA
Bob
why is this dropping
CTAS - Too funny!
Finding a Clean Public Restroom Is Now Possible with New “Where to Wee” Mobile App from Cintas
News Link
GLTA
Bob
CTAS - Cintas Partners with New York-Based Fashion Designer Jay Godfrey to Launch Fashionable New Apparel Collection for Hospitality
News Link
GLTA
Bob
49 will be y2k highs.. I can see it happening.
Today was a fine test of CTAS imho.. Healthcare pretty strong. This one is a no brainer I guess.
CTAS - CINTAS started out as an industrial laundry, providing and cleaning uniforms, shop towels, fender covers and entrance mats on a rental basis. Since all of the products were being leased, they had to be purchased up front. If all of the leasing fees were applied to the cost of the products it would take about 26 weeks of rental charges to pay for the items - uniforms about 32-34 weeks and other items closer to 12 weeks. This ultimately created a high margin business with a slow return on investment and a premium on keeping existing customers.
Initially, CINTAS expanded by opening new plants in new regions.
Ultimately, CINTAS expanded in two different manners. The first was by acquiring competitors and the second was adding new services that could be sold to the same cutomer base. That is how CINTAS got involved in First Aide services, Document destruction, Restroom services, etc.
One of the effects of the product diversification is that it costs less to expand the business in areas where the cost of multiple styles and sizes of uniforms doesn't have to be absorbed.
I hope this helps.
GLTA
Bob
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