Cintas Corp (CTAS)

The uniform company. In my opinion, this would be a TMF Hidden Gem if only it weren't for the company being too far above the $2 billion market cap limit. The stock price looks like a mirror image of earnings over the last couple of years (in other words, as one continues to grow, the other continues to drop). In my opinion it has just dropped too far in the face of ever growing earnings.

The CEO is on the Forbes 400, yet draws less than $1 million per year, including options. His brother only makes $400,000 per year, and this is for a $7 billion company. This company has 15% insider ownership, which is impressive for a company this big. Most of that is owned by the brothers. It gives me a good feeling knowing they "eat their own cooking" as it were.

It's a little harder for me to understand what exactly their moat is and how deep it runs, given their industry, but they must be doing something right. They have constantly growing earnings and an above 15% ROE, so this isn't a commodity business, that much is certain.

I think management agrees, as the company has bought back millions of shares over the last two years, and continues to buy back.

Nice, boring company with a wide moat, selling at a meaningful discount to fair value.

"We're more comfortable in that kind of business. It means we miss a lot of very big winners. But we wouldn't know how to pick them out anyway. It also means we have very few big losers - and that's quite helpful over time. We're perfectly willing to trade away a big payoff for a certain payoff." - 1999 Berkshire Hathaway Annual Meeting

cintas is company to watch. fools if it falls to $18/$19-then buy & hold!!!!!! fool on

Widely used in commercial industry

Should be able to command a higher p/e

Wide-moat leader in it's industry. Has leverage over customers and competitors. Major new sales force reorganization underway to promote cross-selling. Will gain further dominance in an economic downturn; has superior acquisition history. Very good management.

CTAS has started a couple of new lines in the last year or so, including paper shredding and steam cleaning public restrooms in larger cities. They are building new and larger plants. Given time, and they will be head and shoulders above their competitors.

Uniform business is well-recognized. Document management business growing significantly. Undervalued.

Selling well below its estimated low of $45.68

Est. 12 mo. range: $58.61-45.68

Like a Volvo --it's boxy, but it's good. Boring, steady, reliable business that continues to leads its field. Management eats its own cooking, so it's my kind of business.

Industry leader, solid ratios. Love it.

Little debt. Good stock!!

I'm putting my money where the Motley Fool's mouth is. Maybe it's blind faith in the ability of a couple of guys who look cool in jester's hats.

My experience at investing is limited to losing money at investing, so I figured the time is right to let greater fools than I lead the way.

Today I sold off most my unfoolish investments (for an overall modest gain) and started a $10k portfolio of totally foolish Stock Advisor stocks.

Bought today:
CTAS 50 @ 23.79
OMTR 100 @ 9.17
LLTC 50 @ 24.28
NATI 50 @ 21.35
FO 50 @ 37.86

Still in Portfolio:
DOW 190 @ 15.86 (not a Stock Advisor pick)
ATVI 100 @ 9.10

Blind faith and a slow learning curve. We'll see how it works out.

This stock will not fair well with the down turn in the economy. With the large number of job losses, there will be less need for this service.

p/e is right above 12 -- the company has shown previous growth trends around 15%. That gives it a decent PEG coupled with Cintas dependable earnings and I think we have a 5 year winner.

I am thinking about adding on any irrational market drop.

I also see their trucks all over town. :)

The improving economy will lead to employment gains which will improves this tock's earnings.

great moat

The company dominates its sector. In additon to uniforms, Cintas now sells fire protection systems and first aid eiquipment. They have a very bright future, lots of cash, and dedicated employees.