Unifi (UFI)
NYSE:UFI
Top Page
Unifi
(NYSE:UFI)
Select Model
Select Model
Rating:51Neutral
Price Target:
$3.50
▼(-8.62% Downside)
Action:ReiteratedDate:02/04/26
The score is held back primarily by weak financial performance (ongoing losses and very thin free cash flow) and loss-based valuation (negative P/E). Offsetting these are improving technical momentum and a more constructive earnings-call outlook driven by cost reductions, better margins, and balance-sheet/cash-flow progress, though revenue declines and tariff-related uncertainty remain key risks.
Positive Factors
Lower breakeven
Restructuring and footprint consolidation cut SG&A ~25% and lowered the revenue breakeven by about $125M. That materially reduces the scale required for profitability, improving resilience to demand cycles and raising the probability that modest volume recovery can produce sustained margin improvement.
Negative Factors
Revenue decline
Consolidated sales fell roughly 12.5% year-over-year and the company shows a multi-year revenue step-down. Persistent top-line contraction reduces fixed-cost absorption, pressures margins, and forces reliance on either sustained mix improvement or volume recovery to restore durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Lower breakeven
Restructuring and footprint consolidation cut SG&A ~25% and lowered the revenue breakeven by about $125M. That materially reduces the scale required for profitability, improving resilience to demand cycles and raising the probability that modest volume recovery can produce sustained margin improvement.
Read all positive factors
Unifi (UFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.45M
Dividend YieldN/A
Average Volume (3M)58.11K
Price to Earnings (P/E)―
Beta (1Y)0.57
Revenue Growth-5.26%
EPS Growth42.84%
CountryUS
Employees2,700
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)-0.48
Shares Outstanding18,581,050
10 Day Avg. Volume67,822
30 Day Avg. Volume58,109
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.38
Price to Sales (P/S)0.17
P/FCF Ratio-3.01
Enterprise Value/Market Cap2.23
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit15.33
Enterprise Value/Ebitda-6.74
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.13
Revenue Forecast (FY)$573.57M
Unifi Business Overview & Revenue Model
Company Description
Unifi, Inc., together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in the United States, Brazil, China, and internationally. It operates in four segments: Polyester, Nylon, Brazil, and Asia. The Pol...
How the Company Makes Money
Unifi primarily makes money by selling manufactured yarns and fibers to customers in the textile supply chain, with revenue largely tied to shipment volumes, product mix (e.g., commodity vs. value-added yarns), and raw-material price dynamics that...
Unifi Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call communicated clear and measurable operational and financial progress — improved gross profit and margins, meaningful cost reductions (SG&A down 25%), strong YTD free cash flow ($13.3M), lower CapEx (~60% decline), reduced net debt ($75M), and a $125M reduction in the annual breakeven revenue — alongside encouraging early demand signals (holiday sales +4%, Central America pickup, early order re-stocking). Offsetting these positives are notable revenue declines (consolidated sales down 12.5%), significant sales weakness in Asia (sales down 27%), pricing pressure in Brazil, continued tariff-driven uncertainty, and an adjusted EBITDA that remains slightly negative. On balance, management presented a credible path to leverage cost and footprint improvements to convert operational gains into sustained financial momentum as trade clarity returns and customers rebuild inventories.Positive Updates
Improved Consolidated Profitability and Margins
Consolidated gross profit improved to $3.6M with gross margin of 3.0% vs $0.5M and 0.4% in the prior-year quarter (gross profit increase of $3.1M). Adjusted EBITDA loss narrowed to -$0.7M, an improvement of $5.1M year-over-year.
Negative Updates
Consolidated Revenue Decline
Net sales for the quarter were down 12.5% year-over-year, with management noting that revenue levels need to improve dramatically to reach long-term targets.
Read all updates
Q2-2026 Updates
Positive
Negative
Improved Consolidated Profitability and Margins
Consolidated gross profit improved to $3.6M with gross margin of 3.0% vs $0.5M and 0.4% in the prior-year quarter (gross profit increase of $3.1M). Adjusted EBITDA loss narrowed to -$0.7M, an improvement of $5.1M year-over-year.
Read all positive updates
Company Guidance
Management guided that Q3 should begin to realize the full benefits of recent cost cuts and footprint consolidation—moves that have reduced the annual revenue breakeven by roughly $125M to about $575M—and that sales should improve into calendar 2026 as tariffs ease (notably reciprocal deals with El Salvador and Guatemala) and customer restocking and Central America demand pick up. They pointed to Q2 metrics showing net sales down 12.5% YoY, consolidated gross profit of $3.6M and a 3.0% gross margin (vs. 0.4% a year ago), SG&A of $9.7M (‑25% YoY), an adjusted EBITDA loss of $0.7M (an improvement of $5.1M), Americas sales down 7.1% but Americas gross profit up $6.1M, Asia sales down 27% with gross profit down 10% but margins +260 bps, and balance‑sheet progress including YTD free cash flow of $13.3M, CapEx of $3.1M (~60% decline), net debt of $75M and working capital of $149M (‑9% YTD). They expect roughly $4M of FY26 SG&A savings from restructuring, a moderate working‑capital increase and lower operating cash flow in Q3 to support disciplined inventory builds, and continued emphasis on margin‑accretive REPREVE and Beyond Apparel growth.Unifi Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
54
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 571.89M | 571.34M | 582.21M | 623.53M | 815.76M | 815.76M |
| Gross Profit | 9.80M | 8.42M | 16.62M | 14.24M | 80.48M | 80.48M |
| EBITDA | -22.27M | 16.18M | -8.01M | -10.85M | 56.12M | 56.12M |
| Net Income | -54.24M | -20.35M | -47.40M | -46.34M | 15.17M | 15.17M |
Balance Sheet | ||||||
| Total Assets | 382.91M | 426.87M | 426.87M | 469.24M | 538.82M | 588.72M |
| Cash, Cash Equivalents and Short-Term Investments | 30.19M | 22.66M | 22.66M | 26.80M | 46.96M | 53.29M |
| Total Debt | 112.98M | 115.87M | 115.87M | 138.44M | 148.57M | 122.96M |
| Total Liabilities | 152.91M | 177.40M | 177.40M | 205.86M | 215.21M | 227.27M |
| Stockholders Equity | 230.00M | 249.47M | 249.47M | 263.38M | 323.61M | 361.45M |
Cash Flow | ||||||
| Free Cash Flow | 221.00K | -31.80M | -9.10M | -31.69M | -39.25M | 11.90M |
| Operating Cash Flow | 9.20M | -21.31M | 2.09M | 4.74M | 380.00K | 36.68M |
| Investing Cash Flow | -386.00K | 41.06M | -10.67M | -36.23M | -41.73M | -24.62M |
| Financing Cash Flow | 1.50M | -24.42M | -10.61M | 25.94M | 17.96M | -12.88M |
Unifi Technical Analysis
Negative
3.83
Price Trends
3.89
Negative
3.72
Negative
4.19
Negative
Market Momentum
-0.07
Positive
41.08
Neutral
46.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFI, the sentiment is Negative. The current price of 3.83 is above the 20-day moving average (MA) of 3.76, below the 50-day MA of 3.89, and below the 200-day MA of 4.19, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 46.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UFI.
Unifi Risk Analysis
Unifi disclosed 17 risk factors in its most recent earnings report. Unifi reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Unifi Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $24.00M | 20.58 | 30.92% | ― | 30.48% | 30.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $67.45M | -1.65 | -22.66% | ― | -5.26% | 42.84% | |
50 Neutral | $36.32M | 8.27 | 0.99% | 6.75% | 12.25% | ― | |
47 Neutral | $35.33M | -3.19 | -13.33% | ― | -7.76% | 49.20% | |
46 Neutral | $27.21M | 3.44 | -40.44% | ― | 2.58% | -502.04% | |
45 Neutral | $76.49M | ― | -26.26% | 1.35% | 27.42% | -5275.12% |
* Consumer Cyclical Sector Average
UFI
Unifi
3.63
-1.27
-25.92%
LAKE
Lakeland Industries
7.80
-12.59
-61.74%
VNCE
Vince Holding
2.04
0.00
0.00%
CULP
Culp
2.79
-2.56
-47.85%
JRSH
Jerash Holdings (US)
2.86
-0.42
-12.80%
JL
J-Long Group Limited
6.38
2.10
49.07%
Unifi Corporate Events
Business Operations and StrategyFinancial Disclosures
Unifi Narrows Losses as Cost Cuts Bolster Profitability
Positive
Feb 3, 2026
On February 3, 2026, Unifi reported results for its fiscal second quarter ended December 28, 2025, showing that while net sales fell 12.6% year-on-year to $121.4 million amid trade and tariff uncertainty and demand volatility, profitability metric...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.