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UniFirst
(NYSE:UNF)
Select Model
Select Model
Rating:67Neutral
Price Target:
$297.00
▲(12.87% Upside)
Action:Reiterated
Date:07/04/26
The score is driven primarily by solid financial strength—especially the very low-leverage balance sheet—tempered by recent margin pressure and uneven free-cash-flow conversion. Technicals add support due to an established uptrend and positive momentum indicators. The main offset is valuation: a high P/E with a low dividend yield makes the stock less attractive on price despite the business quality.
Positive Factors
Recurring service revenue model
UniFirst’s rental and route-based service model produces durable, contractually recurring revenue and high customer stickiness. Over a 2–6 month horizon this supports predictable cash flows, steady utilization of laundering assets, and resilience to one-off demand swings versus transactional sellers.
Negative Factors
Margin compression
Profit margin erosion reduces the company’s ability to convert revenue into sustainable earnings and returns. If cost inflation, pricing pressure, or reclassification effects persist, long-term ROE and reinvestment capacity could be constrained, lowering durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring service revenue model
UniFirst’s rental and route-based service model produces durable, contractually recurring revenue and high customer stickiness. Over a 2–6 month horizon this supports predictable cash flows, steady utilization of laundering assets, and resilience to one-off demand swings versus transactional sellers.
Read all positive factors
UniFirst Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Operating income by segment shows how much profit each business unit generates after core operating costs, revealing which parts of UniFirst drive cash flow and healthy margins. Helpful for spotting where management is extracting value, which segments cover fixed costs, and where cost pressures or inefficiencies could threaten overall profitability.
Operating income by segment shows how much profit each business unit generates after core operating costs, revealing which parts of UniFirst drive cash flow and healthy margins. Helpful for spotting where management is extracting value, which segments cover fixed costs, and where cost pressures or inefficiencies could threaten overall profitability.
Data provided by:
The Fly
The FlyUniFirst (UNF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.75B
Dividend Yield0.71%
Average Volume (3M)227.39K
Price to Earnings (P/E)40.8
Beta (1Y)0.47
Revenue Growth1.41%
EPS Growth-22.01%
CountryUS
Employees16,000
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)6.62
Shares Outstanding14,532,640
10 Day Avg. Volume212,159
30 Day Avg. Volume227,390
Financial Highlights & Ratios
PEG Ratio7.87
Price to Book (P/B)1.46
Price to Sales (P/S)1.30
P/FCF Ratio22.40
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit5.12
Enterprise Value/Ebitda15.92
Forecast
1Y Price Target
$262.00Price Target Upside-0.43% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)7.24
Revenue Forecast (FY)$2.51B
UniFirst Business Overview & Revenue Model
Company Description
UniFirst Corporation is a prominent provider of workwear and protective uniforms, catering to businesses across the United States, Europe, and Canada. The company segments its operations into U.S. and Canadian Rental and Cleaning, Manufacturing, S...
How the Company Makes Money
UniFirst primarily makes money through recurring service revenue from uniform and workwear programs, typically structured as ongoing rental/lease agreements. Under these programs, customers pay regular service fees for the use of garments along wi...
UniFirst Earnings Call Summary
Earnings Call Date:Jan 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call presented a mix of modest top-line momentum and strategic progress alongside meaningful near-term profitability and cash-flow pressures. Revenue growth was positive (consolidated +2.7% YoY; core organic +2.4%; First Aid +15.3%), new account wins and retention trends improved, and the company maintained a strong balance sheet and continued buybacks/dividend increases. Offsetting these positives were declines in operating income, adjusted EBITDA, net income and EPS (double-digit percentage drops), margin compression tied to planned investments and higher claims/legal costs, ERP/Key Initiative costs, and working capital strain. Management reiterated guidance and outlined a multi-year roadmap (ERP and UniFirst Way) that they expect to drive margin inflection in 2027–2028, but the near-term picture remains mixed.Positive Updates
Revenue Growth
Consolidated revenues increased to $621.3 million, up 2.7% year-over-year (from $604.9 million).
Negative Updates
Profitability Pressure — Lower Income and EBITDA
Consolidated operating income decreased to $45.3 million from $55.5 million (down ~18.4% YoY). Net income fell to $34.4 million from $43.1 million (down ~20.2% YoY). Adjusted EBITDA declined to $82.8 million from $94.0 million (down ~11.9% YoY). Diluted EPS decreased to $1.89 from $2.31 (down ~18.2% YoY).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Consolidated revenues increased to $621.3 million, up 2.7% year-over-year (from $604.9 million).
Read all positive updates
Company Guidance
Management reaffirmed full-year fiscal 2026 guidance with consolidated revenues of $2.475–$2.495 billion and fully diluted EPS of $6.58–$6.98, noting the outlook includes an estimated $7 million of Key Initiative (ERP) costs to be expensed in FY26, assumes a full-year effective tax rate of ~26%, and does not assume future share buybacks. In Q1 they reported revenues of $621.3 million (up 2.7% year‑over‑year), operating income of $45.3 million, adjusted EBITDA of $82.8 million, net income of $34.4 million ($1.89 diluted EPS), cash and short‑term investments of $129.5 million, capital expenditures of $38.9 million, share repurchases of $31.7 million in the quarter (≈$77 million over two quarters), and $14.9 million of acquisitions—factors management says support the reiterated guidance while investments and one‑time costs weigh on near‑term margins.UniFirst Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
90
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.49B | 2.43B | 2.43B | 2.23B | 2.00B | 1.83B |
| Gross Profit | 914.27M | 749.60M | 847.60M | 751.75M | 694.37M | 684.94M |
| EBITDA | 293.75M | 337.88M | 330.81M | 262.03M | 244.10M | 302.76M |
| Net Income | 115.79M | 148.27M | 145.47M | 103.67M | 103.40M | 151.11M |
Balance Sheet | ||||||
| Total Assets | 2.82B | 2.78B | 2.70B | 2.57B | 2.43B | 2.38B |
| Cash, Cash Equivalents and Short-Term Investments | 168.88M | 209.17M | 175.08M | 89.60M | 376.40M | 512.87M |
| Total Debt | 85.05M | 72.44M | 68.81M | 64.76M | 51.67M | 43.17M |
| Total Liabilities | 622.65M | 609.20M | 587.90M | 566.01M | 512.10M | 508.11M |
| Stockholders Equity | 2.20B | 2.17B | 2.11B | 2.00B | 1.92B | 1.87B |
Cash Flow | ||||||
| Free Cash Flow | 87.09M | 141.36M | 134.85M | 43.77M | -21.67M | 78.66M |
| Operating Cash Flow | 238.58M | 295.71M | 295.27M | 215.76M | 122.65M | 212.30M |
| Investing Cash Flow | -178.63M | -155.05M | -162.24M | -487.65M | -186.51M | -141.47M |
| Financing Cash Flow | -109.56M | -99.99M | -50.36M | -25.84M | -69.44M | -34.26M |
UniFirst Technical Analysis
Positive
263.13
Price Trends
262.28
Positive
257.26
Positive
217.29
Positive
Market Momentum
1.39
Negative
57.30
Neutral
74.76
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 263.13 is below the 20-day moving average (MA) of 266.08, above the 50-day MA of 262.28, and above the 200-day MA of 217.29, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 57.30 is Neutral, neither overbought nor oversold. The STOCH value of 74.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $72.56B | 37.06 | 41.47% | 0.88% | 8.71% | 9.55% | |
67 Neutral | $4.75B | 40.84 | 6.24% | 0.71% | 1.41% | -22.01% | |
67 Neutral | $2.59B | 17.01 | 8.94% | 2.20% | 6.53% | 107.41% | |
67 Neutral | $1.88B | 13.92 | 8.32% | ― | 28.34% | 67.93% | |
65 Neutral | $14.80B | 41.18 | 11.23% | 1.14% | 10.15% | 3.07% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $1.34B | -264.10 | 2.62% | ― | -0.02% | -154.82% |
* Industrials Sector Average
UNF
UniFirst
270.36
100.88
59.52%
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ARMK
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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.