Unifi (UFI) AI Stock Analysis

• Market Cap: $93.41M
• Dividend Yield: N/A
• Average Volume (3M): 64.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 1.57%
• EPS Growth: 38.38%
• Country: US
• Employees: 2,700
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Apparel - Manufacturers
• EPS (TTM): -1.82
• Shares Outstanding: 18,351,295
• 10 Day Avg. Volume: 72,219
• 30 Day Avg. Volume: 64,607
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.46
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 13.83
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.00
• Price Target Upside: 135.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Unifi's overall stock score of 49 reflects significant financial challenges, with persistent losses and cash flow issues weighing heavily. While technical analysis and strategic initiatives offer some optimistic potential, the negative valuation metrics and difficult market conditions in Asia temper the outlook.

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 makes money primarily through the sale of its specialized yarns, with a significant portion of its revenue derived from its flagship REPREVE® line. The company's revenue model is centered around manufacturing and distributing these yarns to major textile manufacturers and brands. Unifi's key revenue streams include the sale of recycled polyester and nylon yarns, which are used in a wide array of consumer products such as clothing, automotive interiors, and home furnishings. Strategic partnerships with leading brands that prioritize sustainability contribute significantly to Unifi's earnings, as these collaborations often drive demand for eco-friendly materials. Additionally, Unifi benefits from its global manufacturing and distribution capabilities, allowing it to efficiently serve a diverse international customer base.

Unifi Financial Statement Overview

Summary

Unifi is facing financial challenges marked by declining revenues, persistent losses, and cash flow issues. The income statement reflects a negative trajectory with operational inefficiencies, while the balance sheet shows increased leverage posing risks. Cash flow is a concern due to negative free cash flow and declining trends, highlighting liquidity issues.

Income Statement

Unifi's income statement shows significant challenges, with a declining revenue trend from 2022 to TTM 2024. The gross profit margin has decreased substantially, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies. The net profit margin is also negative, highlighting ongoing losses. These factors contribute to a low score.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has increased over time, indicating higher leverage, which poses a potential risk. However, the company's equity ratio remains reasonable, showing a stable equity base. The return on equity is negative due to continued losses, affecting the overall score.

Cash Flow

Unifi's cash flow situation is concerning, with negative free cash flow and a declining operating cash flow trend. The free cash flow growth rate is negative, and both the operating cash flow to net income and free cash flow to net income ratios are unfavorable. These issues reflect liquidity challenges, resulting in a low score.

Breakdown
Jun 2024	Sep 2023	Sep 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
582.21M	623.53M	815.76M	667.59M	606.51M
	Gross Profit
16.62M	14.24M	80.48M	93.49M	39.04M
	EBIT
-37.42M	-40.87M	28.60M	38.61M	-8.58M
	EBITDA
-8.16M	-10.85M	55.90M	76.31M	-28.08M
	Net Income Common Stockholders
-47.40M	-46.34M	15.17M	29.07M	-57.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.80M	46.96M	53.29M	78.25M	75.27M
	Total Assets
469.24M	538.82M	588.72M	555.37M	474.16M
	Total Debt
138.44M	148.57M	122.96M	95.27M	107.20M
	Net Debt
111.64M	101.61M	69.67M	17.02M	31.94M
	Total Liabilities
205.86M	215.21M	227.27M	196.95M	158.01M
	Stockholders Equity
263.38M	323.61M	361.45M	358.42M	316.15M
Cash Flow		Free Cash Flow
-9.10M	-31.69M	-39.25M	11.90M	34.22M
	Operating Cash Flow
2.09M	4.74M	380.00K	36.68M	52.72M
	Investing Cash Flow
-10.67M	-36.23M	-41.73M	-24.62M	41.57M
	Financing Cash Flow
-10.61M	25.94M	17.96M	-12.88M	-37.92M

Unifi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.09
• 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 5.09 is above the 20-day moving average (MA) of 4.92, below the 50-day MA of 5.11, and below the 200-day MA of 5.91, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 44.82 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
VNCE	72 Outperform	$19.42M	4.26	8.53%	―	-6.50%	-76.07%
Sector *	60 Neutral	$6.58B	11.55	3.14%	4.05%	2.58%	-21.37%
JRSH	51 Neutral	$36.39M	―	-5.77%	6.76%	15.70%	-337.22%
UFI	49 Neutral	$93.41M	―	-12.60%	―	1.57%	38.38%
CULP	45 Neutral	$47.72M	―	-31.18%	―	-9.80%	-59.08%
LAKE	44 Neutral	$155.11M	―	-13.39%	0.72%	34.10%	-432.13%
XELB	44 Neutral	$5.65M	―	-47.20%	―	-52.20%	-0.80%

Unifi Corporate Events

Unifi Reports Q3 2025 Results with Net Loss

Unifi, Inc. reported its third quarter fiscal 2025 results, showing a net sales decrease to $146.6 million, primarily due to weaker sales in the Asia Segment and unfavorable currency effects in Brazil. The company experienced a net loss of $16.8 million, with a gross loss of $0.4 million. Despite these challenges, Unifi is optimistic about future growth, driven by improved performance in the Americas segment and strategic restructuring efforts, including the sale of its Madison, North Carolina facility to reduce debt. The company anticipates significant cost savings from its manufacturing transition, aiming for a $20 million annual reduction.

Spark’s Take on UFI Stock

According to Spark, TipRanks’ AI Analyst, UFI is a Neutral.

Unifi’s overall stock score of 52 reflects a company facing significant financial challenges but with some potential for improvement. The financial performance score is low due to declining revenues and ongoing losses, impacting the overall score heavily. Technical analysis shows mixed signals, and while the valuation seems unattractive with a negative P/E ratio, strategic initiatives highlighted in the earnings call could lead to future improvements. The closure of the Madison facility is expected to enhance operational efficiency, but current challenges, particularly in cash flow and sales performance, weigh down the stock’s prospects.

To see Spark’s full report on UFI stock, click here.

Unifi Announces Facility Closure and Reports Q2 Loss

On February 3, 2025, Unifi, Inc. announced the closure of its Madison, North Carolina facility as part of a consolidation strategy to enhance efficiency by relocating operations to other facilities in North and Central America. This move will result in up to 250 job losses and incur restructuring charges estimated between $5.0 million and $7.5 million. UNIFI released its second fiscal quarter results for the period ending December 29, 2024, showing a net loss of $11.4 million compared to a $19.8 million loss in the previous year. Despite a slight increase in net sales to $138.9 million, gross profit decreased due to adverse sales mix and pricing dynamics. The company is optimistic about future growth, driven by sustainable product demand and operational optimization, aiming to improve profitability and shareholder value.