G & K Services Inc. AGKSR

Morningstar Rating

Stock Research and Analysis

by Vishnu Lekraj

As far as the sheer size of its revenue stream, G&K Services is one of the major players within the uniform rental and sanitation service markets. However, it lacks the operational efficiency of some of its rivals, and this has contributed to insufficient Read more

Bulls Say

G&K has shown the ability to produce solid cash flow.

Due to its relatively large size within the uniform rental market, the firm has the resources to acquire new routes and improve scale advantages if managed correctly.

G&K has built a strong foothold in the uniform direct sale market via its exclusive agreement with Dockers. Read more

Bears Say

G&K lacks the operational efficiency of its main rival Cintas.

Profitability has suffered as operating margins have fallen from positive 13% in 2000 to negative 8% in 2009.

The uniform rental market is maturing, and the firm's push into other service markets could distract management and waste resources. Read more

Strategy

G&K is aggressively acquiring other uniform rental businesses to supplement growth for its maturing uniform rental line. Uniform direct sales is another market the firm is hoping will help drive Read more

Management

Doug Milroy was appointed CEO and a director of the board in May 2009. He replaces Richard Marcantonio who has been a part of shaping the firm's strategic direction for close to a decade. Milroy has been with G&K since 2004 and has extensive C-suite Read more

Profile

G&K is a large player in the uniform rental market. The firm currently services 175,000 customers throughout major metropolitan areas of North America. The firm was Read more

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