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UniFirst (UNF)
NYSE:UNF
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UniFirst
(NYSE:UNF)
73Outperform
UniFirst (UNF) vs. S&P 500 (SPY)
Market Cap
$3.10B
Dividend Yield0.77%
Average Volume (3M)118.43K
Price to Earnings (P/E)22.2
Beta (1Y)0.46
Revenue Growth6.74%
EPS Growth31.05%
CountryUS
Employees16,000
SectorIndustrials
Sector Strength65
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)7.82
Shares Outstanding15,007,187
10 Day Avg. Volume204,702
30 Day Avg. Volume118,433
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)N/A
Price to Sales (P/S)1.50
Price to Cash Flow (P/CF)15.80
P/FCF Ratio15.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$187.00Price Target Upside7.47% Upside
Rating ConsensusHold
Number of Analyst Covering2
UniFirst Business Overview & Revenue Model
Company DescriptionUniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States, Europe, and Canada. The company operates through U.S. and Canadian Rental and Cleaning, Manufacturing, Specialty Garments Rental and Cleaning, and First Aid segments. It designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, and aprons; and specialized protective wear, such as flame resistant and high visibility garments. The company also rents and sells industrial wiping products, floor mats, facility service products, and dry and wet mops; restroom and cleaning supplies comprising air fresheners, paper products, gloves, masks, sanitizers, and hand soaps; and other textile products. In addition, it provides first aid cabinet services and other safety supplies; decontaminates and cleans work clothes, and other items that is exposed to radioactive materials; and services special cleanroom protective wear and facilities. Further, it offers a range of garment service options, including full-service rental programs in which garments are cleaned and serviced; lease programs in which garments are cleaned and maintained by individual employees; and purchase programs to buy garments and related items directly. The company serves automobile service centers and dealers, delivery services, food and general merchandise retailers, food processors and service operations, light manufacturers, maintenance facilities, restaurants, service companies, soft and durable goods wholesalers, transportation companies, healthcare providers, government agencies, research and development laboratories, high technology companies, and utilities operating nuclear reactors, as well as others who require employee clothing for image, identification, protection, or utility purposes. UniFirst Corporation was founded in 1936 and is headquartered in Wilmington, Massachusetts.
How the Company Makes MoneyUniFirst Corporation generates revenue primarily through its uniform rental and sales services. The company operates a highly efficient industrial laundry network that allows it to provide uniform laundering and delivery services on a weekly basis, ensuring convenience for its clients. Revenue streams include long-term rental agreements where customers pay a recurring fee for uniform rental and maintenance, as well as direct sales where customers purchase uniforms outright. Additionally, UniFirst offers complementary services such as facility service products, including floor mats, mops, and restroom supplies, which provide additional revenue. Strategic partnerships with suppliers and a focus on customer service contribute to its earnings, allowing UniFirst to maintain a competitive edge in the uniform rental and services market.
UniFirst Financial Statement Overview
Summary
UniFirst presents a strong financial profile with consistent revenue growth, robust profitability, and a solid balance sheet with low leverage. The company's efficient cash generation and low debt levels enhance its financial flexibility. While gross profit margins show minor pressure, the overall financial health remains excellent, positioning it well for future growth and stability within the corporate services industry.Income Statement
UniFirst's income statement reflects strong profitability with a gross profit margin of 30.9% and a net profit margin of 6.0% in the TTM. Revenue growth is robust, increasing by 10.0% from 2023 to 2024. EBIT and EBITDA margins stand at 7.6% and 13.6% respectively, indicating efficient cost management. The company shows consistent revenue growth and stable profitability, positioning it well within the industry, although the slight decline in gross profit from the previous annual period suggests some margin pressure.85
Very Positive
Balance Sheet
UniFirst's balance sheet is solid, with a low debt-to-equity ratio of 0.03, indicating minimal leverage. The equity ratio is strong at 79.0%, reflecting a stable capital structure. Return on equity is healthy at 6.9%, showcasing efficient use of equity to generate profits. Overall, the balance sheet highlights strong financial stability with low risk due to modest leverage and high equity levels.90
Very Positive
Cash Flow
The cash flow statement indicates positive trends with a free cash flow growth rate of 38.2% from 2023 to 2024. The operating cash flow to net income ratio of 2.1 suggests strong cash generation relative to net income. However, the substantial capital expenditures impact free cash flow, which could be a concern if not managed properly. Overall, cash flows are robust, supporting ongoing operations and investments.80
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.44B | 2.43B | 2.23B | 2.00B | 1.83B | 1.80B | Gross Profit |
| 752.34M | 847.60M | 751.75M | 694.37M | 684.94M | 639.23M | EBIT |
| 185.87M | 183.58M | 133.51M | 134.28M | 195.82M | 172.73M | EBITDA |
| 331.73M | 325.01M | 262.03M | 244.10M | 302.76M | 278.36M | Net Income Common Stockholders |
| 146.25M | 145.47M | 103.67M | 103.40M | 151.11M | 135.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 395.32M | 175.08M | 89.60M | 376.40M | 512.87M | 474.84M | Total Assets |
| 2.15B | 2.70B | 2.57B | 2.43B | 2.38B | 2.20B | Total Debt |
| 44.73M | 68.81M | 64.76M | 51.67M | 43.17M | 41.83M | Net Debt |
| -350.59M | -92.76M | -14.68M | -324.73M | 86.35M | 83.66M | Total Liabilities |
| 451.42M | 587.90M | 566.01M | 512.10M | 508.11M | 457.90M | Stockholders Equity |
| 1.70B | 2.11B | 2.00B | 1.92B | 1.87B | 1.74B |
| Cash Flow | Free Cash Flow | ||||
| 186.36M | 134.85M | 43.77M | -21.67M | 78.66M | 169.97M | Operating Cash Flow |
| 307.72M | 295.27M | 215.76M | 122.65M | 212.30M | 286.68M | Investing Cash Flow |
| -160.07M | -162.24M | -487.65M | -186.51M | -141.47M | -157.62M | Financing Cash Flow |
| -57.80M | -50.36M | -25.84M | -69.44M | -34.26M | -41.10M |
UniFirst Technical Analysis
Negative
174.00
Price Trends
209.04
Negative
201.52
Negative
191.57
Negative
Market Momentum
-9.49
Positive
27.64
Positive
28.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNF, the sentiment is Negative. The current price of 174 is below the 20-day moving average (MA) of 196.65, below the 50-day MA of 209.04, and below the 200-day MA of 191.57, indicating a bearish trend. The MACD of -9.49 indicates Positive momentum. The RSI at 27.64 is Positive, neither overbought nor oversold. The STOCH value of 28.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNF.
UniFirst Risk Analysis
UniFirst disclosed 27 risk factors in its most recent earnings report. UniFirst reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
UniFirst Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $82.01B | 47.10 | 40.19% | 0.74% | 7.79% | 19.21% | |
73 Outperform | $3.10B | 22.23 | 7.01% | 0.77% | 6.74% | 31.05% | |
72 Outperform | $4.34B | 18.54 | 17.09% | 4.32% | -5.24% | -28.94% | |
72 Outperform | $4.16B | 5.83 | 17.48% | 0.73% | 8.52% | 281.17% | |
68 Neutral | $5.81B | 16.85 | 24.05% | 0.83% | -2.38% | 141.60% | |
66 Neutral | $5.38B | 14.25 | 6.78% | ― | -15.66% | -54.03% | |
62 Neutral | $8.05B | 13.60 | 4.04% | 3.11% | 3.70% | -14.19% |
* Industrials Sector Average
Performance Comparison
UNF
UniFirst
174.00
9.41
5.72%
ARW
Arrow Electronics
103.83
-23.55
-18.49%
CTAS
Cintas
205.53
37.89
22.60%
MSM
MSC Industrial
77.67
-13.35
-14.67%
VMI
Valmont
285.37
68.21
31.41%
GHC
Graham Holdings
960.86
209.94
27.96%
UniFirst Earnings Call Summary
Earnings Call Date: Jan 8, 2025 | % Change Since: -14.85% | Next Earnings Date: Apr 2, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive financial metrics and growth in specific segments, offset by challenges such as declining net wearer levels and increased costs. The company's confidence in future growth and value creation opportunities was noted, despite a challenging pricing environment.Highlights
Revenue Growth
First quarter revenues were $604.9 million, an increase of 1.9% from fiscal 2024.
Increase in Operating Income and Adjusted EBITDA
Operating income and adjusted EBITDA increased by 4.5% and 5.9%, respectively, compared to the first quarter of fiscal 2024.
Strong Operating Cash Flows
Operating cash flows increased by 27.3% compared to the same quarter a year ago.
Specialty Garments and First Aid Segment Growth
Specialty Garments segment revenues increased by 2.9%, and First Aid segment revenues increased by 5.4%.
Lowlights
Weaker Net Wearer Levels
Net wearer levels for existing customers declined, showing some incremental weakness compared to a year ago.
Higher Health Care and Legal Costs
Higher health care costs and legal environmental expenses partially offset the improvements in operating income and adjusted EBITDA.
Challenging Pricing Environment
A more challenging pricing environment has developed, impacting retention rates and overall growth in core laundry operations.
Company Guidance
During UniFirst Corporation's Q1 2025 earnings call, several key financial metrics were highlighted. The company reported first-quarter revenues of $604.9 million, marking a 1.9% increase from the previous year. Operating income rose by 4.5% to $55.5 million, while adjusted EBITDA saw a 5.9% increase to $94 million. Net income for the quarter improved to $43.1 million, or $2.31 per diluted share. The Core Laundry Operations segment contributed $532.7 million in revenues, a 1.7% rise, and maintained an operating margin of 8.1%. Specialty Garments and First Aid segments also reported revenue growth of 2.9% and 5.4%, respectively. The company maintained a solid balance sheet with no long-term debt and $181 million in cash and equivalents, while operating cash flows increased by 27.3%. Looking ahead, UniFirst expects fiscal 2025 revenues between $2.425 billion and $2.440 billion and diluted EPS between $6.79 and $7.19, despite a challenging pricing environment affecting retention rates.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.