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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)

Rating:61Neutral
Price Target:
$180.00
▲(3.81%Upside)
UniFirst's robust financial performance is the primary strength, indicating solid profitability and a stable balance sheet. However, the stock's bearish technical indicators and mixed earnings call sentiment present notable risks. Valuation is moderate, providing a balanced perspective on its market position.
Positive Factors
Earnings
Adjusted EPS increased 14%, to $1.40, above the consensus estimate.
Financial Performance
Better-than-expected operating performance in the core laundry business is expected to continue.
Negative Factors
Market Environment
There is a less positive outlook on the broader operating environment for the company based on certain KPI commentary and the potential for latent impacts from tariffs.
Revenue
Management reduced its top-line outlook by $5.5 million at the midpoint.

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 uniform rental and facility service programs. The company enters into long-term contracts with businesses, providing them with a consistent supply of clean, well-maintained uniforms and facility service products. Revenue is earned on a recurring basis, as customers pay for the rental, laundering, and maintenance of uniforms. In addition to rental services, UniFirst also sells uniforms and related products directly to customers, offering a purchase option alongside its rental solutions. The company benefits from its expansive service network and distribution capabilities, allowing it to efficiently manage inventory and logistics. Strategic partnerships and acquisitions further enhance UniFirst's market presence and expand its customer base, contributing to its overall earnings.

UniFirst Earnings Call Summary

Earnings Call Date:Jul 02, 2025
(Q3-2025)
|
% Change Since: -8.93%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were positive developments in revenue growth, net income increase, and strong performance in the First Aid segment, these were counterbalanced by challenges such as decreased operating margins in Core Laundry and Specialty Garments, lower direct sales, and increased strategic and legal expenses. The sentiment reflects a cautious optimism tempered by existing operational challenges.
Q3-2025 Updates
Positive Updates
Revenue Growth
Consolidated revenues for Q3 2025 were $610.8 million, an increase of 1.2% from the previous year.
Net Income Increase
Net income for the quarter increased to $39.7 million, or $2.13 per diluted share, from $38.1 million, or $2.03 per diluted share.
Adjusted EBITDA Growth
Consolidated adjusted EBITDA increased to $85.8 million from $84.8 million in the prior year, a growth of 1.2%.
First Aid Segment Growth
The First Aid segment's revenues increased to $29.8 million from $27.3 million in the prior year, reflecting a growth of 9%, driven by growth in van operations.
Strong Balance Sheet
The company continues to maintain a solid financial position with no long-term debt and cash, cash equivalents, and short-term investments totaling $211.9 million.
Negative Updates
Core Laundry Operating Margin Decline
The Core Laundry segment's operating margin declined to 6.9% from 7% in the previous year.
Lower Direct Sales Revenues
Growth in the quarter was impacted by lower direct sales revenues compared to the same quarter of the previous year.
Incremental Softness in Wearer Levels
There was some incremental softness in customer wearer levels, impacting the ability to build more top line momentum.
Increased Strategic and Legal Costs
The company incurred approximately $5.7 million in expenses related to advisory costs for a strategic matter and legal costs related to an employee matter.
Specialty Garments Margin Decline
The Specialty Garments segment's operating margin for the quarter was 22.8%, down from 23.9% in the prior year.
Company Guidance
During the Q3 2025 UniFirst Earnings Conference Call, the company reported a 1.2% increase in consolidated revenues to $610.8 million compared to the previous year, while operating income slightly decreased to $48.2 million. Net income rose to $39.7 million, or $2.13 per diluted share. The adjusted EBITDA also increased by 1.2% to $85.8 million. The effective tax rate was reported at 25.7%. The Core Laundry Operations saw a revenue increase of 0.9% to $533.2 million, with an adjusted EBITDA margin unchanged at 13.5%. Specialty Garments segment revenues increased slightly to $47.8 million, while the First Aid segment grew by 9% to $29.8 million. The company maintained its annual revenue guidance between $2.422 billion and $2.432 billion and revised its diluted EPS guidance to a range of $7.60 to $8. The call also highlighted the impact of tariffs on vendor costs and pricing, strategic investments in technology, and ongoing ERP implementation, which is progressing well and influencing costs.

UniFirst Financial Statement Overview

Summary
UniFirst showcases a robust financial performance with sustained revenue and profit growth, strong margins, and a stable balance sheet. Low leverage and efficient cash flow management further strengthen its financial health. The company is well-positioned in the Specialty Business Services industry, with opportunities for further growth and profitability improvement.
Income Statement
85
Very Positive
The income statement reflects strong growth with a consistent increase in revenue and net income over the years. The TTM data shows a gross profit margin of 34.6% and a net profit margin of 6.2%, indicating solid profitability. The revenue growth rate from the previous annual report is 1.25%, while the EBIT margin stands at 7.7% and the EBITDA margin at 13.8%. These figures highlight a robust financial position with stable profitability trends.
Balance Sheet
78
Positive
UniFirst maintains a healthy balance sheet with a low debt-to-equity ratio of 0.034 and a strong equity ratio of 78.8%, indicating low leverage and high stability. Return on equity is 7.0%, reflecting efficient use of equity to generate profits. The company's financial position is strong, though slightly lower ROE suggests room for improvement in asset utilization.
Cash Flow
82
Very Positive
The cash flow statement reveals positive trends with a strong operating cash flow to net income ratio of 1.97, indicating efficient cash generation from operations. Free cash flow has grown significantly, demonstrating a 36.42% growth from the previous period. The free cash flow to net income ratio is 1.21, which underscores the company's ability to generate cash above its net income, supporting growth and stability.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue2.43B2.23B2.00B1.83B1.80B
Gross Profit847.60M751.75M694.37M684.94M639.23M
EBITDA325.01M262.03M244.10M302.76M278.36M
Net Income145.47M103.67M103.40M151.11M135.77M
Balance Sheet
Total Assets2.70B2.57B2.43B2.38B2.20B
Cash, Cash Equivalents and Short-Term Investments175.08M89.60M376.40M512.87M474.84M
Total Debt68.81M64.76M51.67M43.17M41.83M
Total Liabilities587.90M566.01M512.10M508.11M457.90M
Stockholders Equity2.11B2.00B1.92B1.87B1.74B
Cash Flow
Free Cash Flow134.85M43.77M-21.67M78.66M169.97M
Operating Cash Flow295.27M215.76M122.65M212.30M286.68M
Investing Cash Flow-162.24M-487.65M-186.51M-141.47M-157.62M
Financing Cash Flow-50.36M-25.84M-69.44M-34.26M-41.10M

UniFirst Technical Analysis

Technical Analysis Sentiment
Negative
Last Price173.40
Price Trends
50DMA
182.48
Negative
100DMA
183.15
Negative
200DMA
191.19
Negative
Market Momentum
MACD
-2.32
Negative
RSI
42.42
Neutral
STOCH
31.73
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 173.4 is below the 20-day moving average (MA) of 176.32, below the 50-day MA of 182.48, and below the 200-day MA of 191.19, indicating a bearish trend. The MACD of -2.32 indicates Negative momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 31.73 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 27 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$90.00B50.6540.16%0.96%7.75%16.31%
75
Outperform
$2.96B38.044.30%2.14%3.52%-67.27%
74
Outperform
$4.16B52.936.25%32.27%-40.50%
71
Outperform
$11.37B33.9811.77%0.94%-3.47%-45.03%
66
Neutral
$1.55B85.782.56%-2.85%-108.99%
61
Neutral
C$6.54B7.732.76%2.57%6.48%-23.55%
61
Neutral
$3.11B21.627.15%0.79%4.18%18.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UNF
UniFirst
173.40
-17.71
-9.27%
ABM
ABM Industries
47.70
-6.30
-11.67%
CBZ
CBIZ
77.81
-6.86
-8.10%
CTAS
Cintas
223.56
33.79
17.81%
ARMK
ARAMARK Holdings
43.89
10.36
30.90%
BV
BrightView Holdings
16.27
2.83
21.06%
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: Jul 09, 2025