Munger Mode rating: 3 out of 5 — Hold. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Warren here, with Charlie's voice firmly in my head. Cintas is precisely the kind of business we spent sixty years looking for: a dull, essential, recurring-revenue service with route density economics, embedded customers, genuine pricing power, and a promote-from-within management culture that has compounded earnings per share at roughly 17% annually for a decade while barely touching the balance sheet. It has raised its dividend every year since going public in 1983 — forty-three consecutive years. This is a wonderful business by any definition we have ever used. The problem is arithmetic, not quality. At roughly $206 per share, the market asks about 42 times trailing earnings and 38 times forward earnings — a free cash flow yield near 2.3% — for a company guiding to 7–9% revenue growth. Our estimate of intrinsic value sits meaningfully below the current quote.
Recent filings analysed: 8-K (2026-08-03), 10-K (2026-07-29), 8-K (2026-07-15), 8-K (2026-06-12).
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