Unifi (UFI) AI Stock Analysis

• Market Cap: $80.79M
• Dividend Yield: N/A
• Average Volume (3M): 45.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -1.87%
• EPS Growth: 57.41%
• Country: US
• Employees: 2,700
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.56
• Shares Outstanding: 18,360,662
• 10 Day Avg. Volume: 52,870
• 30 Day Avg. Volume: 45,073
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 22.86
• Enterprise Value/Ebitda: 17.61
• 1Y Price Target: $4.00
• Price Target Upside: -9.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: $4.00 ▼(-9.30% Downside)

Unifi's overall stock score of 42 reflects significant financial and operational challenges. The most impactful factor is the company's poor financial performance, with declining revenues and negative profitability. Technical analysis also indicates bearish momentum, and valuation metrics are concerning due to ongoing losses. The earnings call provides some hope for future improvement, but current conditions remain difficult.

Unifi Business Overview & Revenue Model

Company Description

Unifi, Inc. (UFI) is a leading innovator in the textile industry, primarily engaged in the production and sale of recycled and synthetic yarns. The company focuses on sustainable and environmentally friendly solutions, producing yarns that are used in a variety of applications, including apparel, automotive upholstery, home furnishings, and industrial products. Unifi is renowned for its REPREVE® brand, which transforms recycled materials, such as plastic bottles, into high-quality fibers, supporting both consumer and industrial demand for sustainable textiles.

How the Company Makes Money

Unifi primarily generates revenue through the sale of its synthetic and recycled yarn products. The company's key revenue stream is its REPREVE® line, which caters to a growing market demand for sustainable materials. Unifi's business model capitalizes on partnerships with global brands and manufacturers in the apparel, automotive, and home furnishing industries, which integrate Unifi's yarns into their products. This includes long-term supply agreements and collaborations with companies committed to sustainability initiatives. Additionally, Unifi's ability to innovate and develop new fiber technologies allows it to maintain a competitive edge and address diverse market needs, thus driving sales and profitability.

Unifi Financial Statement Overview

Summary

Unifi is facing significant financial challenges across all major financial statements. The income statement shows declining revenues and negative profitability, while the balance sheet reflects a moderate level of leverage but poor returns on equity. The cash flow statement highlights liquidity issues with negative operating and free cash flows. The company needs to address its operational inefficiencies and improve profitability to enhance its financial health.

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	-9.52M	-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	101.34M	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: Negative
• Last Price: 4.41
• 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 Negative. The current price of 4.41 is below the 20-day moving average (MA) of 4.51, below the 50-day MA of 4.74, and below the 200-day MA of 5.23, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of 23.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UFI.

Unifi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
LAKE	55 Neutral	$142.15M	―	-17.61%	0.79%	34.28%	-495.11%
JRSH	52 Neutral	$42.67M	51.77	1.30%	5.94%	17.12%	―
VNCE	47 Neutral	$18.50M	6.22	-63.56%	―	1.46%	-191.66%
CULP	45 Neutral	$50.61M	―	-28.56%	―	-5.37%	-37.39%
UFI	42 Neutral	$80.79M	―	-7.94%	―	-1.87%	57.41%
XELB	39 Underperform	$5.71M	―	-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.