Cintas’ (CTAS) primary business is creating and servicing corporate uniform plans.

The company also sells business products and services, including:

Cintas was founded in 1929 as Acme Industrial Laundry Company. Cintas went public in 1983 and now has a market cap of $9.6 billion.

Cintas has a streak of 31 consecutive years of dividend increases. The company’s long dividend streak makes Cintas a member of the exclusive Dividend Aristocrats Index.

Cintas Business Overview

Cintas’ operations are divided into 3 segments.  Each segment is shown below, along with the percentage of total pretax income generated from each segment:

Cintas generates the vast majority of its income from its rental uniform business. This business line is the core of what Cintas is.

Competitive Advantage

Cintas competitive advantage comes from its established local delivery routes and network of processing facilities. The company’s employee and location count are shown below:

It would require a large amount of up-front capital to compete effectively with Cintas in business uniform services in North America. Cintas is the largest business of its kind in North America.

The company has a scale based competitive advantage that is very difficult for potential competitors to replicate.

Growth Prospects & Total Return

Cintas has grown earnings-per-share at 6.6% a year over the last decade.

The company has reduced its share count by 4.1% a year over the same time period. About two-thirds of Cintas’ growth has been driven by share repurchases rather than organic growth.