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UniFirst (UNF)
NYSE:UNF
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UniFirst (UNF) AI Stock Analysis

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UNF

UniFirst

(NYSE:UNF)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
$176.00
▲(13.14% Upside)
UniFirst's overall stock score is driven by its strong financial performance and balanced earnings call sentiment. While the technical analysis indicates bearish trends, the company's strategic investments and stable financial health provide a solid foundation for future growth. Valuation metrics suggest moderate pricing, with room for improvement in dividend yield.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
Customer Retention
Improved customer retention strengthens recurring revenue streams and enhances long-term business sustainability.
Strategic Investments
Strategic investments in technology and expansion efforts are likely to drive operational efficiency and future growth.
Negative Factors
Soft Employment Environment
A softer employment environment can reduce demand for uniforms, impacting revenue growth in key segments.
Decline in Operating Income
A decline in operating income can pressure profitability and limit resources for reinvestment, affecting long-term growth potential.
Impact of Tariffs
Tariffs can increase costs and reduce margins, posing a challenge to maintaining competitive pricing and profitability.

UniFirst (UNF) vs. SPDR S&P 500 ETF (SPY)

UniFirst Business Overview & Revenue Model

Company DescriptionUniFirst 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 MoneyUniFirst generates revenue primarily through its rental and leasing model, where customers pay for the use of uniforms and related products on a recurring basis. This model ensures a steady stream of income as clients typically have ongoing uniform needs. Key revenue streams include uniform rental services, sales of work apparel, and facility services. Additionally, the company benefits from long-term contracts with clients, which provide stability and predictability in revenue. Partnerships with various industries allow UniFirst to expand its customer base and enhance service offerings, contributing to its overall earnings.

UniFirst Earnings Call Summary

Earnings Call Date:Oct 22, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Jan 07, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted notable achievements such as revenue growth, customer retention improvements, and strategic organizational changes. However, these were tempered by challenges including a decrease in quarterly revenues, decline in operating income, and impacts from tariffs. The sentiment is balanced with both positive and negative aspects being equally pronounced.
Q4-2025 Updates
Positive Updates
Overall Revenue Growth
Full-year revenues reached $2.432 billion, representing an increase of 2.1% compared to fiscal 2024 after adjusting for last year's additional week of operations.
Improvements in Customer Retention
Notable improvements were seen in customer retention in fiscal 2025 after two years of lost business, with key leading indicators such as NPS scores and customers under contract trending positively.
First Aid and Safety Solutions Growth
The First Aid and Safety Solutions segment achieved close to 10% growth in fiscal 2025 and anticipates double-digit expansion in fiscal 2026.
Solid Operating Cash Flow
The company generated solid cash flows from operating activities totaling $296.9 million.
Strategic Organizational Changes
The introduction of Chief Operating Officer Kelly Rooney and the 'UniFirst Way' enhanced customer experience and operational excellence.
Negative Updates
Decrease in Quarterly Revenues
Consolidated revenues for the quarter were $614.4 million compared to $639.9 million a year ago due to the timing of the fiscal calendar.
Decline in Operating Income and Net Income
Consolidated operating income for the quarter was $49.6 million compared to $54.0 million in the prior year, and net income decreased to $41.0 million from $44.6 million.
Impact of Tariffs on Profitability
Newly imposed tariffs are expected to impact short to medium-term profitability, with the situation remaining dynamic and evolving.
Challenges in Uniform and Facility Service Solutions
Uniform and Facility Service Solutions revenues decreased by 4.4% from 2024, with operating margin decreasing to 8.3% from 8.7%.
Soft Employment Environment Impact
Reductions in wearer numbers have become more pronounced, affecting overall growth rates due to a softer employment environment.
Company Guidance
During the Q4 2025 UniFirst earnings call, the company reported fiscal year revenues of $2.432 billion, reflecting a 2.1% increase compared to fiscal 2024 after adjusting for an extra week in the previous year. The fourth quarter saw consolidated revenues of $614.4 million, a 3.4% organic growth excluding the extra week in 2024. The Uniform and Facility Service Solutions segment, which now includes clean room operations, reported a 2.9% organic growth rate driven by new account sales and improved customer retention. Despite a decrease in operating margin to 8.3% from 8.7% and an adjusted EBITDA margin drop to 14.8%, the company is optimistic about continued growth through strategic investments. These include a $7 million investment in ERP systems, anticipated to enhance operational efficiency, and expansion efforts in the First Aid and Safety Solutions segment, which achieved a 12.4% organic growth. The company also highlighted plans for strategic investments in sales and service infrastructure to drive future organic growth, targeting mid-single-digit growth and high-teen EBITDA margins. For fiscal 2026, UniFirst anticipates revenues between $2.475 billion and $2.495 billion, with diluted EPS ranging from $6.58 to $6.98. The company expects ongoing investments to temporarily impact profitability but remains confident in its long-term growth trajectory.

UniFirst Financial Statement Overview

Summary
UniFirst demonstrates strong financial health with stable profitability and a solid balance sheet. Despite a slight decline in revenue and free cash flow growth, the company maintains efficient operations and a conservative financial structure, positioning it well for future stability and growth.
Income Statement
75
Positive
UniFirst's income statement shows a slight decline in revenue growth rate at -1.03% compared to the previous year. However, the company maintains a healthy gross profit margin and net profit margin, indicating stable profitability. The EBIT and EBITDA margins are also strong, reflecting efficient operational management despite the revenue dip.
Balance Sheet
80
Positive
The balance sheet is robust with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The equity ratio is strong, suggesting a solid capital structure. Return on equity is moderate, reflecting consistent returns on shareholders' investments.
Cash Flow
70
Positive
Cash flow analysis reveals a decline in free cash flow growth rate by -23.17%, which may indicate potential challenges in cash generation. However, the operating cash flow remains strong relative to net income, suggesting good cash conversion efficiency. The free cash flow to net income ratio is healthy, supporting the company's ability to generate cash from operations.
BreakdownTTMDec 2025Dec 2024Dec 2019Dec 2018Dec 2017
Income Statement
Total Revenue2.43B2.43B2.43B1.81B1.70B1.59B
Gross Profit889.95M749.60M847.60M670.18M639.76M597.37M
EBITDA337.88M337.88M325.01M232.01M285.54M205.46M
Net Income148.27M148.27M145.47M179.13M163.90M70.20M
Balance Sheet
Total Assets2.78B2.78B2.70B2.05B1.84B1.82B
Cash, Cash Equivalents and Short-Term Investments209.17M209.17M175.08M385.34M270.51M349.75M
Total Debt72.44M72.44M68.81M0.000.000.00
Total Liabilities609.20M609.20M587.90M406.09M378.42M365.94M
Stockholders Equity2.17B2.17B2.11B1.64B1.46B1.45B
Cash Flow
Free Cash Flow174.93M141.36M134.85M162.33M117.33M109.72M
Operating Cash Flow295.71M295.71M295.27M282.14M230.07M218.27M
Investing Cash Flow-155.05M-155.05M-162.24M-124.33M-153.90M-233.04M
Financing Cash Flow-99.99M-99.99M-50.36M-41.49M-152.95M-2.18M

UniFirst Technical Analysis

Technical Analysis Sentiment
Negative
Last Price155.56
Price Trends
50DMA
169.16
Negative
100DMA
173.47
Negative
200DMA
184.51
Negative
Market Momentum
MACD
-2.19
Positive
RSI
43.47
Neutral
STOCH
26.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNF, the sentiment is Negative. The current price of 155.56 is below the 20-day moving average (MA) of 163.83, below the 50-day MA of 169.16, and below the 200-day MA of 184.51, indicating a bearish trend. The MACD of -2.19 indicates Positive momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 26.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNF.

UniFirst Risk Analysis

UniFirst disclosed 28 risk factors in its most recent earnings report. UniFirst reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

UniFirst Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$73.90B42.2042.04%0.85%8.21%13.56%
$2.64B24.626.32%2.46%4.27%-24.06%
$2.77B29.597.84%46.49%-25.62%
$2.77B19.996.93%0.88%0.21%2.72%
$10.28B29.0412.00%1.07%-0.06%3.83%
$10.79B15.437.44%2.01%2.89%-14.66%
$1.19B374.033.03%-2.99%-72.13%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UNF
UniFirst
155.56
-22.95
-12.86%
ABM
ABM Industries
43.07
-8.85
-17.05%
CBZ
CBIZ
51.31
-17.62
-25.56%
CTAS
Cintas
183.90
-20.36
-9.97%
ARMK
ARAMARK Holdings
39.10
1.67
4.46%
BV
BrightView Holdings
12.53
-3.85
-23.50%

UniFirst Corporate Events

UniFirst Corporation Reports Steady Fiscal 2025 Results
Oct 23, 2025

UniFirst Corporation, headquartered in Wilmington, Massachusetts, is a leading provider of uniform and workwear programs, facility service products, and first aid and safety supplies across North America. The company also manages specialized garment programs for the cleanroom and nuclear industries and manufactures its own branded workwear and protective clothing.

UniFirst Corp Earnings Call: Balancing Growth and Challenges
Oct 23, 2025

The recent earnings call for UniFirst Corp presented a balanced sentiment, highlighting both achievements and challenges. While the company celebrated revenue growth and customer retention improvements, it also faced hurdles such as decreased quarterly revenues, a decline in operating income, and the impact of tariffs. This duality in sentiment reflects the company’s current standing, with positive strides being met with notable challenges.

Business Operations and StrategyPrivate Placements and Financing
UniFirst Secures $300M Credit Facility Agreement
Positive
Aug 14, 2025

On August 12, 2025, UniFirst Corporation entered into a Third Amended and Restated Credit Agreement with Bank of America and other financial institutions, providing a $300 million unsecured revolving credit facility, with the possibility to increase commitments up to $400 million. This agreement, maturing in 2030, outlines financial covenants and default conditions, impacting UniFirst’s financial flexibility and operational stability by securing significant credit resources.

The most recent analyst rating on (UNF) stock is a Sell with a $175.00 price target. To see the full list of analyst forecasts on UniFirst stock, see the UNF Stock Forecast page.

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.Date of analysis: Oct 26, 2025