PQUS0.720%
as of Jul 21
CTAS
DefensiveCINTAS CORP
Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.
Close · 3M
+0.51%
Held by 1 AI ETF
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals4
Win rate100% (4/4)
Avg buy return+14.18%
PQUS · Weight increase · 2d
Pictet Asset Management's AI ranking system for PQUS, designed for US large-caps with sector-balance rules, likely re-evaluated Cintas Corp (CTAS) following its recent 30-day return of +4.6%. Given the fund's periodic rebalance cadence, the AI system adjusted the Industrials allocation, prompting a consecutive weight increase to 0.67%. The AI's decision to increase exposure to CTAS may be supported by its 41.47% Return on Equity (ROE) and the stock trading at 79% of its 52-week high. This targeted adjustment reflects the AI's dynamic selection method within PQUS's portfolio of around 165 US large-cap holdings.
weight 0.620% → 0.670% (+0.050 pp)·stock down 0.1% in the 30 days before
Jul 10·entry $179.64·now $201.80Chased
+12.34%
since Jul 10
PQUS · Weight increase · 2d
weight 0.500% → 0.530% (+0.030 pp)·stock up 6.2% in the 30 days before
Jun 7·entry $173.65·now $201.80Chased
+16.21%
since Jun 7
PQUS · Weight decrease · 2d
CTAS presents high profitability with a 41.47% ROE and 8.71% revenue growth, yet trades at a 35.71 PER and 19.5 PBR. For Pictet Asset Management’s PQUS, a US large-cap fund with measured turnover, these metrics initially supported inclusion within its AI ranking system. However, the stock’s substantial depreciation, with 1-year returns down 19.0% and the current price of $172.36 sitting at 76% of its $227.66 52-week high, suggests a re-evaluation by the AI system. The observed consecutive weight decreases from 0.62% to 0.60% between May 20 and May 22, 2026, within PQUS indicates the AI’s periodic rebalancing mechanism, which considers its US large-cap universe with sector-balance and concentration rules. This measured adjustment for CTAS specifically aligns with PQUS’s style of adapting portfolio holdings to sustained market performance rather than reacting to daily fluctuations, even for a company with a high ROE.
weight 0.620% → 0.600% (-0.020 pp)·stock down 2.6% in the 30 days before
May 22·entry $172.93·now $201.80
+16.69%
since May 22
PQUS · Weight increase · 2d
Cintas, with a 41.47% ROE and 8.71% revenue growth, appears to satisfy Pictet Asset Management's AI ranking system's criteria for quality within the US large-cap universe, despite its PER of 34.76 and PBR of 19.5 suggesting a premium valuation. This aligns with PQUS's "measured turnover" style, indicating the AI's system likely prioritizes sustained financial performance. The significant weight increase for CTAS within PQUS, from 0.34% to 0.58% on May 16, 2026, and further to 0.59% the next day, coincided with the stock trading around $168.31, near the lower bound of its 52-week range and after substantial declines over the prior 30, 90, and 365 days. This timing suggests the AI's periodic rebalancing mechanism, informed by its ranking system and layering sector-balance/concentration rules, identified an opportunity to increase exposure to Cintas as its price had retreated significantly, making its established quality more accessible within the fund's US large-cap framework.
weight 0.340% → 0.590% (+0.250 pp)·stock down 5.2% in the 30 days before
May 17·entry $174.51·now $201.80Chased
+15.64%
since May 17
PQUS · Sudden change · 1d
The AI likely significantly increased its CTAS allocation due to the company's exceptionally high ROE of 41.47%, signaling robust profitability and efficient capital utilization, which can justify elevated valuation multiples for a strong-performing business. For retail investors, this highlights that AI-managed funds prioritize companies with outstanding fundamental efficiency and shareholder returns, suggesting a focus on quality and profitability over solely low valuation metrics.
weight 0.030% → 0.330% (+0.300 pp)·stock down 4.1% in the 30 days before
May 10·entry $164.67·now $201.80
+22.55%
since May 10
QRFT · Exit · 1d
The AI ETF likely divested from CTAS due to its extremely high valuation multiples (PER 34.95, PBR 19.5), suggesting the AI deemed the stock overvalued despite strong revenue growth and ROE. This indicates retail investors should always consider valuation alongside company quality, as even strong performers can reach prices that trigger automated risk management exits.
weight 0.150% → 0 (exited)·stock down 4.3% in the 30 days before
May 4·entry $166.89·now $201.80
+20.92%
since May 4
QRFT · New entry · 1d
weight 0 → 0.170% (new)·stock down 9.4% in the 30 days before
Mar 20·entry $179.34·now $201.80Chased
+12.52%
since Mar 20
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of May 11
There is a mixed signal from the AI ETFs, with PQUS accumulating a significant position while QRFT recently exited entirely. This mixed AI activity contrasts with the framework's overall 'Fail' verdict, which is primarily driven by the lack of a sufficient margin of safety at current prices.
- Circle of CompetenceThe business model of recurring facility and uniform services has stable unit economics, allowing for reasonable projection of ten-year cash flows.
- Economic MoatCintas benefits from significant scale advantages in its logistics and operations, coupled with customer switching costs and a strong B2B brand, creating a durable economic moat.
- ManagementThe provided data does not offer sufficient information to assess management's candor, capital allocation discipline, or skin in the game.
- Financial HealthWhile the reported current ROE is very strong, the lack of 10-year ROE history, operating margin trends, detailed debt metrics, and components for Owner Earnings makes a definitive assessment impossible.
- Margin of SafetyThe current valuation multiples (PER 34.48, PBR 19.5, EV/EBITDA 38.72) indicate a premium price that does not offer a defensible margin of safety.
Cintas operates within a predictable circle of competence, fortified by a strong economic moat based on scale and customer switching costs. However, a complete assessment of management and financial health is not possible with the provided limited data. Critically, the current market valuation does not offer a defensible margin of safety for value investors, leading to a 'Fail' verdict.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.