Cintas (CTAS) Boosts Sanitizer Dispenser Line With Germ-X
Cintas Corporation CTAS announced that it has teamed up with Germ-X — a leading provider of hand sanitizing products in the United States. Per the deal, Cintas will incorporate the Germ-X sanitizers in all of its rental sanitizer dispensers, bolstering the availability of the same.
Touted as one of the most effective hand sanitizers, Germ-X’s advanced hand sanitizers are specialised in killing over 99.9% of several harmful bacteria and germs within 15 seconds. Notably, Germ-X’s patented formulations include latex, CHG, vinyl and nitrile glove-compatible along with 70% of alcohol. The moisturizers present in the sanitizer help users to deal with dry skin conditions.
Following this latest partnership, Germ-X’s will be available through Cintas’ rental service program in foam as well as gel formulations. As a matter of fact, the Cintas rental sanitizer service will help in monitoring, refilling and maintaining sanitizer dispensers, catering to a facility’s changing requirements.
Existing Business Scenario
Cintas is set to benefit from its focus on enhancement of product portfolio, customer base and investment in technology. In addition, the company believes that the implementation of a new enterprise resource planning system, namely SAP, will improve efficiency of its business operations. For fiscal 2020 (ending May 2020), Cintas anticipates revenues to be $7.28-$7.32 billion compared with $7.24-$7.31 billion projected earlier.
Furthermore, the company has been steadily strengthening business through acquisitions. Notably, its G&K Services Inc. buyout in March 2017 is worth mentioning. The deal has been adding value to its Uniform Rental and Facility Services segment. Going forward, the buyout is likely to act as a major revenue booster and bring in significant cost synergies.
Cintas’ cash position remains impressive as well. This is evident from a 69.9% year-over-year increase in cash flow from operating activities in the fiscal first quarter of 2020 (ended August 2019).
In the past six months, this Zacks Rank #2 (Buy) stock has yielded a return of 27% almost in line with the industry’s 26.2% growth.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Industrial Products sector are AZZ Inc. AZZ, Brady Corporation BRC and Lakeland Industries, Inc. LAKE. While AZZ currently sports a Zacks Rank #1 (Strong Buy), Brady and Lakeland Industries carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AZZ delivered average positive surprise of 2.12% in the trailing four quarters.
Brady came up with average beat of 9.68% in the preceding four quarters.
Lakeland Industries pulled off average positive surprise of 325.89% in the last four quarters.
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