UniFirst (UNF) AI Stock Analysis

• Market Cap: $3.51B
• Dividend Yield: 0.71%
• Average Volume (3M): 207.03K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.66
• Revenue Growth: 0.20%
• EPS Growth: 2.72%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.98
• Shares Outstanding: 14,521,268
• 10 Day Avg. Volume: 264,242
• 30 Day Avg. Volume: 207,034
• PEG Ratio: 7.87
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 22.40
• Enterprise Value/Market Cap: -0.01
• Enterprise Value/Revenue: -0.02
• Enterprise Value/Gross Profit: -0.05
• Enterprise Value/Ebitda: -0.14
• 1Y Price Target: $177.25
• Price Target Upside: -12.26% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $223.00 ▲(10.39% Upside)

The score is driven primarily by solid underlying financial strength (especially the balance sheet) and strong technical trend momentum. Offsetting factors include premium valuation with a modest yield and a mixed earnings outlook where reaffirmed guidance and growth are tempered by near-term margin and cash-flow pressure tied to investments and initiative costs.

Positive Factors

Balance Sheet Strength

UniFirst's conservative leverage and strong equity ratio provide durable financial flexibility. Low debt supports continued capex, tuck‑in M&A, share buybacks and dividend policy while absorbing ERP and initiative costs, reducing risk during cyclical demand or working‑capital swings.

Recurring Subscription Model & Customer Retention

A subscription-based uniform rental model with improving retention and new account wins creates predictable, recurring revenue and high customer lifetime value. This steady cash flow supports multi-year investments and cross-selling of facility services, underpinning durable revenue stability.

High-Growth Adjacent Segment Expansion

Strong double-digit growth in First Aid & Safety plus small bolt‑on acquisitions diversifies UniFirst beyond core uniform rentals. Expanding higher-growth product lines and M&A capability can raise overall growth and margin potential over time and reduce reliance on legacy segments.

Negative Factors

Margin Compression & Profitability Declines

Material declines in operating income, adjusted EBITDA and EPS reflect sustained margin pressure from planned investments, higher claims/legal costs and ERP expenses. Persistently compressed margins reduce reinvestment capacity and slow cash recovery until initiatives drive the promised inflection.

Free Cash Flow & Working Capital Strain

A sharp FCF growth decline and heavy working capital tied to merchandise in service and large account installations strain liquidity. This limits the company's ability to fund ERP rollouts, M&A or shareholder returns without either using cash reserves or curbing investments over the medium term.

Strategic Uncertainty from Takeover Process

An active unsolicited acquisition proposal and related shareholder activism create governance and strategic distraction. Management focus, potential deal negotiations and proxy processes can delay execution of operational initiatives and complicate longer-term capital allocation decisions over months.

UniFirst Business Overview & Revenue Model

Company Description

UniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States, Europe, and Canada. The company operates through U.S. and Canadian Rental and Cleaning, Manufacturing, Specialty Garments Rental and Cleaning, and First Aid segments. It designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, and aprons; and specialized protective wear, such as flame resistant and high visibility garments. The company also rents and sells industrial wiping products, floor mats, facility service products, and dry and wet mops; restroom and cleaning supplies comprising air fresheners, paper products, gloves, masks, sanitizers, and hand soaps; and other textile products. In addition, it provides first aid cabinet services and other safety supplies; decontaminates and cleans work clothes, and other items that is exposed to radioactive materials; and services special cleanroom protective wear and facilities. Further, it offers a range of garment service options, including full-service rental programs in which garments are cleaned and serviced; lease programs in which garments are cleaned and maintained by individual employees; and purchase programs to buy garments and related items directly. The company serves automobile service centers and dealers, delivery services, food and general merchandise retailers, food processors and service operations, light manufacturers, maintenance facilities, restaurants, service companies, soft and durable goods wholesalers, transportation companies, healthcare providers, government agencies, research and development laboratories, high technology companies, and utilities operating nuclear reactors, as well as others who require employee clothing for image, identification, protection, or utility purposes. UniFirst Corporation was founded in 1936 and is headquartered in Wilmington, Massachusetts.

How the Company Makes Money

UniFirst primarily generates revenue through the rental and sale of uniforms and protective clothing, which accounts for a significant portion of its income. The company operates on a subscription-based model, where customers pay recurring fees for uniform rental services, including laundering and maintenance. Additionally, UniFirst earns revenue from the direct sale of uniforms and other apparel, as well as from ancillary services such as floor mat rentals and facility service supplies. The company's diverse customer base, ranging from small businesses to large corporations, allows it to establish long-term contracts that provide stable, recurring revenue. Strategic partnerships with manufacturers and suppliers also enhance UniFirst's offerings and contribute to its profitability by ensuring access to a wide range of high-quality products.

UniFirst Financial Statement Overview

Summary

Overall fundamentals are solid, led by an exceptionally strong balance sheet (very low leverage and substantial equity) and consistent profitability. Revenue has grown over multiple years, but margins have compressed versus 2021 and free cash flow has recently softened with weaker cash conversion, tempering the score.

Income Statement

UNF shows a solid top-line trajectory over the last several years (revenue rising from ~$1.83B in 2021 to ~$2.45B in TTM (Trailing-Twelve-Months)). Profitability is positive and fairly steady in recent periods, with TTM (Trailing-Twelve-Months) net margin around 5.7% and EBITDA margin around 13.3%. The key weakness is margin compression versus 2021 (when net margin was ~8.3% and EBITDA margin ~16.6%), suggesting higher costs and/or pricing pressure. The TTM (Trailing-Twelve-Months) revenue growth figure is unusually high relative to the recent annual trend, which adds some uncertainty around near-term growth momentum.

Balance Sheet

The balance sheet is a clear strength: leverage is very low with debt-to-equity around 0.03–0.04 across periods (TTM (Trailing-Twelve-Months) ~0.036). Equity is substantial (~$2.16B TTM (Trailing-Twelve-Months)) against total assets (~$2.75B), supporting financial flexibility and downside protection. Returns on equity are moderate (TTM (Trailing-Twelve-Months) ~6.5%), down from stronger levels in 2021 (~8.1%), indicating that while the company is conservatively financed, profitability is not translating into top-tier shareholder returns.

Cash Flow

Cash generation is generally healthy with operating cash flow of ~$252M in TTM (Trailing-Twelve-Months) and free cash flow of ~$132M, showing the business can consistently fund itself. However, cash conversion is not best-in-class: free cash flow is only about half of net income in TTM (Trailing-Twelve-Months) (~0.52), implying meaningful reinvestment needs and/or working-capital swings. Free cash flow growth in TTM (Trailing-Twelve-Months) is negative, signaling some recent softening after improvements from weaker cash flow levels earlier in the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.43B	2.43B	2.23B	2.00B	1.83B
Gross Profit	749.60M	847.60M	751.75M	694.37M	684.94M
EBITDA	337.88M	325.01M	262.03M	244.10M	302.76M
Net Income	148.27M	145.47M	103.67M	103.40M	151.11M
Balance Sheet
Total Assets	2.78B	2.70B	2.57B	2.43B	2.38B
Cash, Cash Equivalents and Short-Term Investments	209.17M	175.08M	89.60M	376.40M	512.87M
Total Debt	72.44M	68.81M	64.76M	51.67M	43.17M
Total Liabilities	609.20M	587.90M	566.01M	512.10M	508.11M
Stockholders Equity	2.17B	2.11B	2.00B	1.92B	1.87B
Cash Flow
Free Cash Flow	141.36M	134.85M	43.77M	-21.67M	78.66M
Operating Cash Flow	295.71M	295.27M	215.76M	122.65M	212.30M
Investing Cash Flow	-155.05M	-162.24M	-487.65M	-186.51M	-141.47M
Financing Cash Flow	-99.99M	-50.36M	-25.84M	-69.44M	-34.26M

UniFirst Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 202.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNF, the sentiment is Positive. The current price of 202.01 is above the 20-day moving average (MA) of 189.25, above the 50-day MA of 173.37, and above the 200-day MA of 174.51, indicating a bullish trend. The MACD of 7.50 indicates Negative momentum. The RSI at 66.43 is Neutral, neither overbought nor oversold. The STOCH value of 77.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNF.

UniFirst Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTAS	75 Outperform	$76.08B	41.74	43.25%	0.88%	8.60%	11.45%
UNF	70 Outperform	$3.51B	26.90	6.93%	0.71%	0.20%	2.72%
ABM	69 Neutral	$2.65B	17.25	9.10%	2.20%	4.62%	102.72%
ARMK	68 Neutral	$10.23B	31.89	10.55%	1.14%	6.35%	24.07%
CBZ	66 Neutral	$2.95B	35.73	7.44%	―	59.19%	-35.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BV	59 Neutral	$1.23B	299.08	3.13%	―	-3.40%	-51.58%

UniFirst Corporate Events

UniFirst Announces Retirement of Executive Vice President of Operations

On December 29, 2025, UniFirst Corporation announced that David DiFillippo plans to retire from his role as Executive Vice President of Operations, effective January 5, 2026. The company highlighted that DiFillippo’s operational responsibilities have been gradually transitioned over the past year in preparation for his departure, signaling a managed leadership change intended to minimize disruption and acknowledging his many years of service and contributions to the organization.

The most recent analyst rating on (UNF) stock is a Hold with a $182.00 price target. To see the full list of analyst forecasts on UniFirst stock, see the UNF Stock Forecast page.

UniFirst affirms leadership continuity with new board chairman

At UniFirst Corporation’s annual shareholders’ meeting held on December 15, 2025, investors re-elected Joseph M. Nowicki and Steven S. Sintros as Class II directors for three-year terms extending to the 2029 annual meeting, approved on an advisory basis the company’s executive compensation program, and ratified the selection of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending August 29, 2026. The following day, on December 16, 2025, the board of directors elevated Nowicki to chairman, signaling continuity in the company’s governance structure and reinforcing shareholder support for the existing leadership and oversight framework.

The most recent analyst rating on (UNF) stock is a Sell with a $145.00 price target. To see the full list of analyst forecasts on UniFirst stock, see the UNF Stock Forecast page.

UniFirst Announces Preliminary 2026 Shareholder Meeting Results

On December 15, 2025, UniFirst Corporation announced the preliminary voting results from its 2026 Annual Meeting of Shareholders, revealing that Steven Sintros and Joseph Nowicki were re-elected to the Board of Directors. The Board expressed gratitude for shareholder engagement and emphasized its commitment to enhancing shareholder value. Final election results will be certified and reported in a Form 8-K filing with the SEC.

The most recent analyst rating on (UNF) stock is a Sell with a $145.00 price target. To see the full list of analyst forecasts on UniFirst stock, see the UNF Stock Forecast page.