Cintas Corporation

Cintas Corporation (NASDAQ: CTAS) offers corporate identity uniforms and facility services in North America, Latin America, Europe, and Asia. It also operates first aid and safety services, fire protection services, and uniform direct sales businesses.

Key Highlights

• The company reported only 0.44% growth in total revenue to USD 7.12 billion in FY21 (ended May 31, 2021) compared to USD 7.09 billion in FY20.
• Gross margin for the year was 46.58%, a slight improvement from 45.64% in FY20.
• Net income for FY21 was USD 1.11 billion, up 26.82% from USD 876.04 million in FY20.
• On July 27, 2021, CTAS declared a quarterly cash dividend of USD 0.95 per share, payable on September 15, 2021, to shareholders of record on August 13, 2021.
• It also launched an additional USD 1.5 billion share buyback program (which can be discontinued at any time) on July 27, 2021. The shares will be repurchased at market prices.
• Significantly high ROE of 32.1% in FY21 vs. the industry median of 4.2%.
• Stock is currently trading above its crucial short-term (50-day) as well as long-term (200-day) SMA support levels.
• Stock is currently leaning towards the higher end of the 52-week range of USD 307.65 to USD 396.38.

Technical Price Chart (as of August 23, 2021). Analysis by Kalkine

Conclusion: CTAS's stock price increased 22.85% in the past twelve months, and its RSI Index is 56.84. Considering the surge in stock price and other technical indications, we believe the stock price sufficiently reflects the strong business fundamentals and have chosen to remain on the sidelines. Therefore, we recommend an "Expensive" rating on the stock at the current price of USD 393.59, up 0.45% as of August 23, 2021, 1:26 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.

Victory Capital Holdings, Inc.

Victory Capital Holdings, Inc. (NASDAQ: VCTR) operates as a diversified global asset management company with ten autonomous investment franchises and a solutions platform. As of July 31, 2021, the company had USD 162.88 billion assets under management (AUM).

Key Highlights

• The company reported YoY growth of 22.00% in total revenue to USD 221.90 million in Q2FY21 (ended June 30, 2021) compared to USD 181.89 million in Q2FY20, resulting from a higher average AUM.
• Its GAAP operating margin in Q2FY21 was 42.93%, an increase from 36.18% reported in Q2FY20.
• Net income for Q2FY21 was USD 69.27 million, up 54.90% from USD 44.72 million in Q2FY20.
• On August 04, 2021, VCTR's wholly-owned investment adviser launched a NASDAQ Crypto Index (NCI) tracking private fund (Victory Hashdex Nasdaq Crypto Index Fund LLC). It also filed an initial registration statement with the SEC to offer the strategy in an ETF vehicle.
• Relatively high ROE of 8.8% in Q2FY21 vs. the industry median of 4.8%.
• Stock is currently trading above its crucial short-term (50-day) as well as long-term (200-day) SMA support levels.
• Stock is currently trading close to the higher end of the 52-week range of USD 15.69 to USD 35.34.

Technical Price Chart (as of August 23, 2021). Analysis by Kalkine

Conclusion: VCTR's stock price increased 98.91% in the past twelve months, and its RSI Index is 61.64. The surge in top and bottom-line, entry into the crypto-market, and the global market position are sufficiently reflected at the current trading levels. Also, considering the technical indications and the surge in the stock price in the last twelve months, we recommend an "Expensive" rating on the stock at the current price of USD 34.59, down 0.46% as of August 23, 2021, 1:01 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.