Unifi (UFI) AI Stock Analysis

• Market Cap: $82.81M
• Dividend Yield: N/A
• Average Volume (3M): 50.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -1.87%
• EPS Growth: 57.41%
• Country: US
• Employees: 2,700
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.56
• Shares Outstanding: 18,360,662
• 10 Day Avg. Volume: 42,956
• 30 Day Avg. Volume: 50,186
• PEG Ratio: 0.08
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -3.01
• Enterprise Value/Market Cap: 2.32
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 22.86
• Enterprise Value/Ebitda: 17.61
• 1Y Price Target: $4.50
• Price Target Upside: -0.22% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: $4.50 ▼(-0.22% Downside)

Unifi's overall stock score reflects significant financial challenges, with declining revenues and negative profitability being the most impactful factors. While there are some positive developments from the earnings call, such as cost savings and new product innovations, these are overshadowed by ongoing revenue declines and external challenges. The technical analysis and valuation further highlight the stock's current struggles.

Positive Factors

Debt Reduction

Reducing debt by $43.3 million lowers interest expenses and improves financial flexibility, positioning Unifi for better long-term stability.

Production Capacity Increase

Increasing production capacity by 40% enhances operational efficiency and supports potential revenue growth, strengthening Unifi's market position.

New Product Innovations

Innovative products like Fortisyn and REPREVE align with sustainability trends, potentially driving demand and enhancing competitive advantage.

Negative Factors

Revenue Decline

A 12% decline in net sales indicates challenges in maintaining market share and revenue growth, impacting long-term financial performance.

Tariff Impacts

Tariff uncertainties causing revenue impacts in key markets could hinder growth and profitability, posing a risk to Unifi's global operations.

Challenges in Asia

A 28% sales decline in Asia due to economic slowdown and tariffs affects Unifi's growth prospects in a critical market, challenging expansion efforts.

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 Polyester segment offers partially oriented, textured, solution and package dyed, twisted, beamed, and draw wound yarns; and pre-consumer and post-consumer waste products, including plastic bottle flakes, polyester polymer, and staple fiber beads to other yarn manufacturers, and knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial, and other end-use markets. The Nylon segment provides virgin or recycled textured, solution dyed, and spandex covered yarns to knitters and weavers that produce fabric primarily for the apparel, hosiery, medical markets. The Brazil segment manufactures and sells polyester-based products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets. The Asia segment primarily sells polyester-based products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets. The company sells its products through sales force and independent sales agents under the REPREVE and PROFIBER brands. Unifi, Inc. was incorporated in 1969 and is headquartered in Greensboro, North Carolina.

How the Company Makes Money

Unifi generates revenue through multiple streams, primarily from subscription services for internet and voice solutions offered to residential and business customers. The company charges monthly fees for these services, which often include bundled packages that combine internet, television, and phone services. Additionally, Unifi earns revenue from the sale of equipment and installation services associated with its connectivity solutions. Strategic partnerships with content providers and other telecommunications firms also contribute to its earnings, allowing for exclusive content offerings and expanded service capabilities that attract more subscribers. Moreover, Unifi may benefit from government contracts or grants aimed at enhancing broadband access in underserved areas, further diversifying its revenue base.

Unifi Financial Statement Overview

Summary

Unifi's financial performance is struggling, with declining revenues and negative profitability across income, balance sheet, and cash flow statements. The company faces significant financial challenges, including negative revenue growth, poor profitability margins, and liquidity issues.

Income Statement

Unifi's income statement reveals significant challenges. The company has experienced declining revenues over the past few years, with a negative revenue growth rate of -3.21% in the most recent year. Profitability metrics are concerning, with a gross profit margin of only 1.47% and a net profit margin of -3.56%. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Overall, the income statement reflects a struggling financial performance with declining revenues and negative profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.46, indicating a manageable level of leverage. However, the return on equity is negative at -8.16%, reflecting poor profitability and returns for shareholders. The equity ratio stands at 58.44%, suggesting a reasonable level of equity financing. While the company maintains a stable capital structure, the negative ROE highlights underlying profitability issues.

Cash Flow

Unifi's cash flow statement indicates challenges in generating positive cash flows. The operating cash flow is negative, and the free cash flow is also negative, although it has shown some improvement with a growth rate of 7.43%. The operating cash flow to net income ratio is negative, suggesting difficulties in converting earnings into cash. The free cash flow to net income ratio is positive at 1.49, indicating some ability to generate cash relative to net losses. Overall, the cash flow situation reflects ongoing liquidity challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	571.34M	571.34M	582.21M	623.53M	815.76M	667.59M
Gross Profit	8.42M	8.42M	16.62M	14.24M	80.48M	93.49M
EBITDA	10.93M	16.18M	-8.01M	-10.85M	55.90M	76.31M
Net Income	-20.35M	-20.35M	-47.40M	-46.34M	15.17M	29.07M
Balance Sheet
Total Assets	426.87M	426.87M	469.24M	538.82M	588.72M	555.37M
Cash, Cash Equivalents and Short-Term Investments	22.66M	22.66M	26.80M	46.96M	53.29M	78.25M
Total Debt	115.87M	115.87M	138.44M	148.57M	122.96M	95.27M
Total Liabilities	177.40M	177.40M	205.86M	215.21M	227.27M	196.95M
Stockholders Equity	249.47M	249.47M	263.38M	323.61M	361.45M	358.42M
Cash Flow
Free Cash Flow	-31.80M	-31.80M	-9.10M	-31.69M	-39.25M	11.90M
Operating Cash Flow	-21.31M	-21.31M	2.09M	4.74M	380.00K	36.68M
Investing Cash Flow	41.06M	41.06M	-10.67M	-36.23M	-41.73M	-24.62M
Financing Cash Flow	-24.42M	-24.42M	-10.61M	25.94M	17.96M	-12.88M

Unifi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UFI, the sentiment is Positive. The current price of 4.51 is above the 20-day moving average (MA) of 4.44, below the 50-day MA of 4.58, and below the 200-day MA of 5.13, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 62.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UFI.

Unifi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.17B	12.71	-2.56%	3.03%	1.42%	-15.85%
VNCE	55 Neutral	$34.04M	6.22	-32.91%	―	-0.49%	-1427.68%
CULP	52 Neutral	$59.50M	―	-19.05%	―	-7.91%	32.31%
JRSH	52 Neutral	$44.07M	53.47	1.30%	5.76%	17.12%	―
LAKE	47 Neutral	$140.02M	―	-15.81%	0.82%	39.13%	-1186.47%
UFI	42 Neutral	$82.81M	―	-7.94%	―	-1.87%	57.41%
XELB	39 Underperform	$7.00M	―	-65.44%	―	-42.62%	-7.75%

Unifi Corporate Events

Unifi Reports Q4 2025 Results Amid Sales Decline

Unifi, Inc. reported its fourth quarter and fiscal year 2025 results, highlighting a 12% decrease in net sales to $138.5 million due to trade-related uncertainties and demand volatility. Despite a challenging environment, the company made strategic moves, including selling a manufacturing facility, which helped reduce debt and is expected to save $20 million annually. Unifi launched Fortisyn, an abrasion-resistant yarn, and remains optimistic about leveraging its leaner manufacturing footprint and strong demand for sustainable solutions to enhance future performance.

The most recent analyst rating on (UFI) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Unifi stock, see the UFI Stock Forecast page.