Share prices of Cintas (NASDAQ: CTAS) are up roughly 28% from where they started 2020, before the COVID-19 outbreak spread into a full global pandemic. For those who have been shareholders that entire time, that's a strong return on investment. But for investors considering buying in now, there's a small problem here that should not be overlooked.
Cintas has two main lines of business. Its service providing uniforms to businesses makes up around 80% of its top line. Most of the rest comes from its facility services segment, which includes first aid and safety services. (That growing niche now accounts for a little more than 10% of total revenue.) Over the past year or so, due to the coronavirus pandemic, the first aid and safety services division has been doing extremely well. Organic revenue in this segment was up by nearly 18% in its fiscal 2021 third quarter, which ended Feb. 28.
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Source Fool.com