Services Sector Ideas

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>>> Cintas (NASDAQ: CTAS) provides products and services to help a wide range of businesses keep their premises clean, such as uniforms, mops, fire extinguishers, and safety training. Like Accenture, the company's revenue and net income has increased steadily during the past three fiscal years.

https://finance.yahoo.com/news/3-growth-stocks-buy-hold-104500181.html

Total revenue increased from $7.1 billion in fiscal 2021 to $8.8 billion in fiscal 2023 (ended May 31). Net income rose at a slower pace but still posted consecutive year-over-year increases, going from $1.1 billion in fiscal 2021 to $1.3 billion by fiscal 2023. Free-cash-flow generation averaged $1.26 billion over the three fiscal years and demonstrates the impressive cash generation of Cintas's business.

For the first nine months of fiscal 2024 ended Feb. 29, Cintas saw revenue continue to climb, increasing by 9.1% year over year to $7.1 billion. Net income rose by 16% year over year to $1.16 billion. Free cash flow did even better over the same period, jumping 31% year over year from $820 million to $1.08 billion.

Cintas's latest quarterly dividend came in at $1.35 per share, a 17% year-over-year increase from the prior year's $1.15. The company boasts an enviable track record of raising its dividends consistently since it went public 41 years ago.

The company's vision is to expand its market by acquiring new customers and increasing its market share as only 1 million businesses out of a potential 16 million are its clients. With market penetration rates of less than 20%, management believes there's room for further growth. If the company is successful, investors should see its top and bottom lines continue to grow.

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