Cintas Corporation Stock Fair Value Calculator – Insurers Sue Cintas Corp. Over COVID-Related Losses
June 20, 2023
🌧️Trending News
Insurers for the Mason-based company Cintas Corporation ($NASDAQ:CTAS) have filed a lawsuit on June 5th in an effort to deny responsibility for any losses Cintas has suffered due to the COVID-19 pandemic. Cintas Corporation is an American-based international provider of corporate identity uniforms and related services. The lawsuit, which was filed in Ohio, seeks to protect insurers from any COVID-19 related losses suffered by Cintas. The insurers claim that the losses are not covered under the terms of their insurance contracts.
This lawsuit is just one of many similar legal actions taken by insurers across the country who have sought to escape responsibility for losses caused by the pandemic. Cintas Corporation has not yet publicly commented on the lawsuit, but it is likely that they will fight to seek compensation for their losses. Given the financial impact that the pandemic has had on businesses, this case could prove to be significant in determining how much insurers are liable for in terms of pandemic-related losses.
Market Price
Tuesday marked a volatile day in the stock market for CINTAS CORPORATION with the stock opening at $485.6 and closing at $483.3, down by 0.3% from last closing price of 484.5. The decline in stock prices could be attributed to news that several insurance companies are suing CINTAS CORPORATION for losses related to COVID-19. The companies allege that CINTAS CORPORATION failed to adequately protect its employees from the virus and that the company’s negligence has caused them to suffer losses due to COVID-19 related claims.
The suit seeks recovery of losses relating to unemployment, medical bills, and workers’ compensation claims. As a result of the lawsuit, CINTAS CORPORATION’s stock prices have been affected and investors are uncertain of what the future holds for the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cintas Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 8.61k | 1.29k | 15.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cintas Corporation. More…
| Operations | Investing | Financing |
| 1.59k | -354.94 | -1.23k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cintas Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.47k | 4.83k | 35.73 |
Key Ratios Snapshot
Some of the financial key ratios for Cintas Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.8% | 11.0% | 20.2% |
| FCF Margin | ROE | ROA |
| 15.1% | 30.7% | 12.8% |
Analysis – Cintas Corporation Stock Fair Value Calculator
GoodWhale has conducted an analysis of CINTAS CORPORATION‘s fundamentals and has determined that the intrinsic value of its share is around $443.1 through our proprietary Valuation Line. Currently, the stock is being traded at $483.3, which indicates a fair price that is slightly overvalued by 9.1%. More…
Peers
Cintas Corp is a provider of uniforms and facility services to businesses worldwide. Its competitors are HITO-Communications Holdings Inc, White Fox Ventures Inc, and Nihonwasou Holdings Inc.
– HITO-Communications Holdings Inc ($TSE:4433)
HITO-Communications Holdings Inc is a Japanese telecommunications company with a market cap of 28.76B as of 2022. The company has a Return on Equity of 21.29%. HITO-Communications provides mobile phone, fixed-line telephone, and Internet services in Japan. The company was founded in 1985 and is headquartered in Tokyo, Japan.
– White Fox Ventures Inc ($OTCPK:AWAW)
As of 2022, White Fox Ventures Inc has a market cap of 1.03M and a return on equity of 318.93%. White Fox Ventures Inc is a venture capital firm that specializes in investments in the technology, healthcare, and media industries.
– Nihonwasou Holdings Inc ($TSE:2499)
Nihonwasou Holdings Inc is a Japanese real estate company with a market cap of 2.79B as of 2022. The company’s Return on Equity is 10.05%. The company engages in the business of leasing, selling, and managing apartments and other properties.
Summary
Cintas Corporation has been hit with a lawsuit from insurers relating to losses incurred as a result of Covid-19. Investors should take this into account when considering whether to invest in the company. Analysts suggest that the stock is underpriced in the current market and could provide an attractive investment opportunity. It has a strong balance sheet and has recently reported strong earnings. Additionally, its dividend yield is higher than the industry average, which could further increase the company’s appeal to investors.
However, investors should consider the potential impact of the lawsuit and Covid-19 pandemic on the business before investing.
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