Unifi (UFI) AI Stock Analysis

• Market Cap: $65.18M
• Dividend Yield: N/A
• Average Volume (3M): 58.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: -5.26%
• EPS Growth: 42.84%
• Country: US
• Employees: 2,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.56
• Shares Outstanding: 18,360,662
• 10 Day Avg. Volume: 67,822
• 30 Day Avg. Volume: 58,109
• 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: 2.99
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 64.38
• Enterprise Value/Ebitda: -9.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $3.00 ▼(-15.49% Downside)

Unifi's overall stock score is primarily impacted by its financial struggles, including declining revenue and negative profit margins. Technical analysis and valuation further highlight bearish trends and unattractive metrics. However, proactive cost restructuring and strategic initiatives provide some optimism for future improvement.

Positive Factors

Cost Restructuring

The cost restructuring initiative is expected to significantly reduce manufacturing costs, improving profitability and financial stability over the long term.

Beyond Apparel Initiatives

Expansion into new markets like military and packaging diversifies revenue streams, enhancing long-term growth prospects and reducing reliance on traditional markets.

Sustainable Innovation

The launch of sustainable products like A.M.Y.® Peppermint yarn aligns with industry trends towards eco-friendly solutions, potentially capturing market share and driving future growth.

Negative Factors

Declining Revenue

The decline in revenue highlights challenges in maintaining sales growth amidst global trade uncertainties, impacting long-term financial performance.

Negative Profit Margins

Sustained negative profit margins indicate operational inefficiencies and challenges in achieving profitability, posing risks to financial health and investor confidence.

Cash Flow Issues

Persistent cash flow issues limit the company's ability to invest in growth opportunities and meet financial obligations, threatening long-term sustainability.

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 by offering subscription-based services for its telecommunications offerings, which include broadband internet and digital television. The company also earns money from the sale of hardware products, such as routers and modems, and from licensing its software solutions to other service providers. Additionally, Unifi has formed strategic partnerships with various technology firms and content providers to expand its service offerings and enhance customer engagement, contributing further to its revenue growth. Advertising revenue from its digital platforms also plays a role in the overall earnings of the company.

Unifi Financial Statement Overview

Summary

Unifi is facing significant financial challenges across all verticals. The income statement shows declining revenue and negative profit margins, while the balance sheet reflects moderate leverage but poor returns on equity. Cash flow issues are evident, with negative operating and free cash flows. The company needs to address operational inefficiencies and improve profitability to stabilize its financial position.

Income Statement

Unifi's income statement reveals significant challenges, with declining revenue and negative profit margins. The TTM data shows a gross profit margin of just 0.42% and a net profit margin of -4.30%, indicating struggles in maintaining profitability. Revenue has decreased by 2.05% in the TTM period, reflecting a downward trend. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.47 in the TTM period, suggesting manageable leverage. However, the return on equity is negative at -8.35%, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is not provided, but the overall financial stability appears to be under pressure due to ongoing losses.

Cash Flow

Cash flow analysis indicates negative operating cash flow and free cash flow in the TTM period, with a free cash flow growth rate of -12.27%. The operating cash flow to net income ratio is -0.27, suggesting inefficiencies in converting income into cash. Despite these challenges, the free cash flow to net income ratio is 1.60, indicating some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	567.67M	571.34M	582.21M	623.53M	815.76M	815.76M
Gross Profit	3.03M	8.42M	16.62M	14.24M	80.48M	80.48M
EBITDA	-19.99M	16.18M	-8.01M	-10.85M	56.12M	56.12M
Net Income	-56.34M	-20.35M	-47.40M	-46.34M	15.17M	15.17M
Balance Sheet
Total Assets	424.63M	426.87M	426.87M	469.24M	538.82M	588.72M
Cash, Cash Equivalents and Short-Term Investments	20.55M	22.66M	22.66M	26.80M	46.96M	53.29M
Total Debt	128.48M	115.87M	115.87M	138.44M	148.57M	122.96M
Total Liabilities	183.53M	177.40M	177.40M	205.86M	215.21M	227.27M
Stockholders Equity	241.09M	249.47M	249.47M	263.38M	323.61M	361.45M
Cash Flow
Free Cash Flow	-26.11M	-31.80M	-9.10M	-31.69M	-39.25M	11.90M
Operating Cash Flow	-14.32M	-21.31M	2.09M	4.74M	380.00K	36.68M
Investing Cash Flow	4.39M	41.06M	-10.67M	-36.23M	-41.73M	-24.62M
Financing Cash Flow	16.09M	-24.42M	-10.61M	25.94M	17.96M	-12.88M

Unifi Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.55
• 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 Neutral. The current price of 3.55 is above the 20-day moving average (MA) of 3.37, below the 50-day MA of 3.95, and below the 200-day MA of 4.60, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 67.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UFI.

Unifi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JL	64 Neutral	$21.89M	56.02	20.89%	―	38.26%	201.16%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VNCE	59 Neutral	$46.69M	-2.36	-33.24%	―	2.58%	-502.04%
JRSH	56 Neutral	$38.61M	64.14	0.99%	6.57%	12.25%	―
UFI	44 Neutral	$65.18M	-2.65	-9.61%	―	-5.26%	42.84%
LAKE	42 Neutral	$88.16M	-2.02	-28.97%	1.33%	27.42%	-5275.12%
CULP	41 Neutral	$47.52M	-4.42	-18.32%	―	-7.76%	49.20%

Unifi Corporate Events

Unifi Launches Restructuring Program Amid Q1 Losses

Unifi, Inc. reported a challenging first quarter of fiscal 2026, with net sales decreasing by 7.9% to $135.7 million due to trade and tariff-related uncertainties and demand volatility. The company experienced a net loss of $11.4 million, with gross profit and margins also declining. In response, Unifi launched a restructuring program in October 2025 to enhance cost structure and profitability, alongside introducing A.M.Y.® Peppermint yarn to reinforce its commitment to sustainable innovation. Despite current financial pressures, the company remains optimistic about future growth as market conditions stabilize, focusing on cost restructuring and strategic investments.

Unifi Shareholders Approve Key Decisions at Annual Meeting

On October 28, 2025, Unifi, Inc. held its Annual Meeting of Shareholders where several key decisions were made. Shareholders approved an amendment to increase the number of shares in the company’s incentive compensation plan by 1,240,000, elected eight directors, approved executive compensation for fiscal 2025, and ratified KPMG LLP as the independent auditor for fiscal 2026.