About: Cintas is America’s largest uniform rental company. For around $1.50 per worker per day Cintas’ will collect, clean and replace uniforms for organisations in industries such as lodging, entertainment, manufacturing and healthcare. Cintas will often provide additional services in the same delivery, such as entrance mats, aprons and rest room supplies. Customer retention is an impressive 95% and the company has grown impressively over time.

Why it’s in the portfolio:

Fundamentals: CTAS has a market cap of $26b USD, a PE of 29.7x forward earnings, EPS of 8.6x forward earnings and a PEG ratio of around 2.7. The company currently has a 1.0% dividend yield and a 24.6% payout ratio. The company’s debt to assets are currently 38.3% and debt to equity is 94.9%.

What could go wrong?