CINCINNATI - Cintas Corporation (NASDAQ:CTAS), a leader in the business-to-business services sector, has declared a four-for-one split of its common stock, as confirmed by its Board of Directors. The company, which last underwent a stock split in 2000, is taking this step to make share ownership more accessible, particularly to its employee-partners.
Shareholders on record as of September 4, 2024, will receive three additional shares for each one they own after the market closes on September 11, 2024. The newly split shares are expected to start trading on a split-adjusted basis from market open on September 12, 2024. This move is anticipated to quadruple the number of outstanding common shares from roughly 101 million to about 404 million.
President and CEO Todd Schneider remarked on the decision, stating that the company's commitment to customer service has driven its stock value to near-record levels. He emphasized that the stock split is a strategic action to enhance the affordability of Cintas shares for both employees and investors, allowing them to partake in the company's ongoing growth.
Cintas, headquartered in Cincinnati, provides a wide range of services and products aimed at helping over one million businesses maintain clean, safe, and professional environments. The company's offerings include uniforms, mats, mops, restroom supplies, and safety products, among others. Cintas is a Fortune 500 company, listed on the Nasdaq Global Select Market and is part of the S&P 500 and Nasdaq-100 indices.
InvestingPro Insights
As Cintas Corporation (NASDAQ:CTAS) announces its stock split to enhance accessibility for shareholders, the company's financial health and market performance provide a broader context for potential investors. According to InvestingPro data, Cintas boasts a robust market capitalization of $67.2 billion, reflecting its significant presence in the business services sector.
InvestingPro Tips highlight the company's perfect Piotroski Score of 9, which indicates exceptional financial health, and also point out that analysts have revised their earnings upwards for the upcoming period, signaling confidence in Cintas's future performance. Additionally, Cintas has maintained dividend payments for 32 consecutive years, demonstrating a consistent return to shareholders.
From a valuation perspective, Cintas is trading at a high earnings multiple, with a P/E Ratio of 45.09 and an adjusted P/E Ratio of 44.87 for the last twelve months as of Q3 2024. While this suggests a premium valuation, the company's impressive gross profit margin of 48.46% during the same period underlines its efficiency and pricing power.
Investors looking for more in-depth analysis and additional InvestingPro Tips can visit https://www.investing.com/pro/CTAS. There are 19 more tips available, which could provide further insights into Cintas's valuation, debt management, and stock performance. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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