Transcript
Introduction
Zack
Today, we are breaking down Cintas Corporation. The company's origins trace back to the Depression of the 1920s when the company's founder, Richard Farmer, who at the time was a circus worker, began a small business to reclaim and clean rags for local factories in Cincinnati, Ohio. Nearly 100 years later, Cintas today is set to approach $10 billion in sales at a 10% five-year CAGR and a 20% operating margin, putting it solidly in the high-quality bucket and trading at a multiple that's indicative of it.
It is America's largest uniform rental company. For around $1.50 per worker per day, Cintas will collect, clean and replace uniforms for organizations in industries such as lodging, hospitality, entertainment, manufacturing, healthcare and with its business even extending to semiconductor fab bunny suits. It remains a family-owned business with multiple generations of the Farmer family having held leadership roles at the company including CEO, and today, the Executive Chair. To help break down Cintas, I am joined by Delian Entchev, a Portfolio Manager at Aoris Investment Management. We hope you enjoy this conversation.