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Unifi
(NYSE:UFI)
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Rating:64Neutral
Price Target:
$8.00
▲(27.19% Upside)
Action:Reiterated
Date:08/21/26
The score is supported by improving cash flow and deleveraging progress, plus a strong positive price trend and constructive FY2027 guidance. It is held back primarily by weak and still-loss-making profitability with a multi-year revenue decline, and valuation support is limited because earnings remain negative.
Positive Factors
Margin and EBITDA turnaround
The sharp gross-margin and EBITDA recovery indicates restructuring is lowering the revenue break-even point and improving operating leverage. If sustained, this can support durable profitability even before sales fully recover.
Negative Factors
Persistent losses and multi-year revenue decline
The prolonged sales contraction and recurring net losses show that the turnaround is not yet proven across a full cycle. Continued losses can erode equity, restrict investment, and leave profitability vulnerable to weaker demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and EBITDA turnaround
The sharp gross-margin and EBITDA recovery indicates restructuring is lowering the revenue break-even point and improving operating leverage. If sustained, this can support durable profitability even before sales fully recover.
Read all positive factors
Unifi (UFI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$140.89M
Dividend YieldN/A
Average Volume (3M)58.11K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth-7.01%
EPS Growth-19.76%
CountryUS
Employees2,500
SectorConsumer Cyclical
Sector Strength84
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)-1.33
Shares Outstanding18,587,254
10 Day Avg. Volume67,822
30 Day Avg. Volume58,109
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)0.39
Price to Sales (P/S)0.17
P/FCF Ratio4.21
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)$554.88M
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 North America, Central America, South America, Asia, and Europe. It offers polyester products, including partially oriented yarn...
How the Company Makes Money
Unifi makes money primarily by manufacturing and selling yarn and related synthetic textile products to customers in the textile supply chain. Its key revenue streams include (1) sales of recycled polyester and nylon yarns—most notably under the R...
Unifi Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlights a clear financial and operational turnaround: revenue growth (+4% YoY), a swing to positive gross margin (~10% vs -0.8% prior year), materially improved adjusted EBITDA (+$12.3M YoY), strong free cash flow ($21.5M FY) and a signed ~$60M real-estate sale that should significantly deleverage the balance sheet. These positives are tempered by a continuing GAAP net loss, persistent revenue challenges in Asia and modest Americas sales contraction, slower-than-expected adoption of circular products, and exposure to macro and tariff-driven volatility. On balance the company has demonstrated tangible progress in restructuring, cash generation, and higher-margin product traction, while still facing execution and market risks that must be resolved in the coming quarters.Positive Updates
Top-line Growth
Consolidated net sales of $144.2 million in Q4, up 4% year-over-year, driven by strong Brazil performance, stabilization in Americas and Asia, and momentum in Beyond Apparel initiatives.
Negative Updates
Reported Net Loss Persists
Reported net loss of $1.2 million in Q4, indicating the company has not yet returned to full GAAP profitability for the quarter.
Read all updates
Q4-2026 Updates
Positive
Negative
Top-line Growth
Consolidated net sales of $144.2 million in Q4, up 4% year-over-year, driven by strong Brazil performance, stabilization in Americas and Asia, and momentum in Beyond Apparel initiatives.
Read all positive updates
Company Guidance
Management guided that fiscal 2027 should see improved sales and profitability as the company realizes the full-year benefits of its restructuring, citing Q4 FY2026 results of consolidated net sales of $144.2M (up 4% YoY), consolidated gross profit $14.3M and gross margin ~10% (vs. a $1.1M gross loss and -0.8% margin prior year), a net loss of $1.2M with adjusted net results $9.5M better YoY, adjusted EBITDA of $8.2M (up $12.3M YoY), Q4 free cash flow of $1M and full‑year FCF of $21.5M (>$50M improvement YoY), Q4 CapEx $1.1M and FY CapEx $5M (50% decline YoY) with FY27 CapEx planned at $7–9M, net debt reduced to $67.4M, and a signed $60M non‑strategic asset sale expected to materially retire debt with minimal tax leakage; management also expects Brazil to deliver improved sales/profitability (Brazil +$5.1M sales, +17.8%, and +$6.4M gross profit), Americas to generate improved sequential and year‑over‑year margins despite sales down 1% (Americas gross profit $3.3M), Asia to be challenged on revenues but improve on innovations (Asia sales/gross profit up $1.1M/$0.5M), growth in Beyond Apparel (resin, carpet, military/tactical) to be margin‑accretive, and a longer‑term goal of 50% of fiber sales as REPREVE by 2030.Unifi Financial Statement Overview
Summary
Income Statement
27
Negative
Balance Sheet
56
Neutral
Cash Flow
63
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 531.30M | 571.34M | 582.21M | 623.53M | 815.76M |
| Gross Profit | 30.46M | 8.42M | 16.62M | 14.24M | 80.48M |
| EBITDA | 10.83M | 16.18M | -8.01M | -10.85M | 56.12M |
| Net Income | -24.56M | -20.35M | -47.40M | -46.34M | 15.17M |
Balance Sheet | |||||
| Total Assets | 386.43M | 426.87M | 426.87M | 469.24M | 538.82M |
| Cash, Cash Equivalents and Short-Term Investments | 25.07M | 22.66M | 22.66M | 26.80M | 46.96M |
| Total Debt | 98.95M | 115.87M | 115.87M | 138.44M | 148.57M |
| Total Liabilities | 154.21M | 177.40M | 177.40M | 205.86M | 215.21M |
| Stockholders Equity | 232.22M | 249.47M | 249.47M | 263.38M | 323.61M |
Cash Flow | |||||
| Free Cash Flow | 21.53M | -31.80M | -9.10M | -31.69M | -39.25M |
| Operating Cash Flow | 26.53M | -21.31M | 2.09M | 4.74M | 380.00K |
| Investing Cash Flow | -4.45M | 41.06M | -10.67M | -36.23M | -41.73M |
| Financing Cash Flow | -19.86M | -24.42M | -10.61M | 25.94M | 17.96M |
Unifi Technical Analysis
Positive
6.29
Price Trends
5.89
Positive
4.88
Positive
4.29
Positive
Market Momentum
0.53
Negative
67.69
Neutral
67.97
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 6.29 is below the 20-day moving average (MA) of 6.94, above the 50-day MA of 5.89, and above the 200-day MA of 4.29, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 67.69 is Neutral, neither overbought nor oversold. The STOCH value of 67.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks
Unifi Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $69.98M | 14.21 | 7.62% | 4.32% | 22.39% | 487.96% | |
64 Neutral | $140.89M | -6.06 | -10.33% | ― | -7.01% | -19.76% | |
63 Neutral | $74.64M | 8.93 | 18.07% | ― | 4.76% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $111.03M | -5.15 | -15.54% | 1.11% | 8.82% | 29.91% | |
54 Neutral | $16.76M | 50.26 | 30.92% | ― | 7.90% | 397.38% | |
53 Neutral | $41.85M | -5.80 | -14.26% | ― | -4.57% | 47.12% |
* Consumer Cyclical Sector Average
UFI
Unifi
8.03
3.62
82.09%
LAKE
Lakeland Industries
11.25
-4.25
-27.42%
VNCE
Vince Holding
6.25
4.73
311.18%
CULP
Culp
3.42
-0.73
-17.59%
JRSH
Jerash Holdings (US)
5.49
2.31
72.64%
JL
J-Long Group Limited
4.77
-1.05
-18.06%
Unifi Corporate Events
Business Operations and StrategyFinancial Disclosures
Unifi Reports Strong Q4 Results and Turnaround Progress
Positive
Aug 19, 2026
For the fiscal fourth quarter ended June 28, 2026, Unifi reported net sales of $144.2 million, up 4.1% year over year, with REPREVE fiber products contributing $40.2 million, or 28% of revenue, and gross margin improving to 9.9% from a loss positi...
Business Operations and StrategyM&A Transactions
Unifi Sells Non-Strategic Yadkin County Real Estate
Positive
Aug 17, 2026
Unifi Manufacturing, Inc., a wholly owned subsidiary of Unifi, Inc., agreed on August 16, 2026 to sell industrial and manufacturing real estate in Yadkin County, N.C. to Enovum Data Centers Corp. for $60 million in cash. The assets comprise about ...
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.