Wednesday, May 17, 2006

Cintas: The Boring Piggy Bank

Hedge fund manager Eddy Elfenbein makes the case for uniform provider Cintas, which he thinks the Street is overlooking. Elfenbein argues:

"Cintas (CTAS) is one of the largest companies that no one knows. The company makes business uniforms and other pieces of flair. The stock did very well through the 1990's, but this decade has been rough. The business is still doing very well, but its valuation has crumbled. The P/E ratio has plunged from about 60 at the beginning of 1999 to just 22 today. This isn't a fast-growing business, but it's a solid, well-run company that has consistently delivered earnings. For this year, Cintas said its expects earnings of $1.92 to $1.96 a share compared with $1.74 last year."

Readers will recall that we pounded the table on CTAS back in April.

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