UniFirst (UNF) AI Stock Analysis

• Market Cap: $3.13B
• Dividend Yield: 0.78%
• Average Volume (3M): 96.75K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.67
• Revenue Growth: 4.18%
• EPS Growth: 18.93%
• Country: US
• Employees: 16,000
• Sector: Industrials
• Sector Strength: 76
• Industry: Specialty Business Services
• EPS (TTM): 2.17
• Shares Outstanding: 14,991,657
• 10 Day Avg. Volume: 68,537
• 30 Day Avg. Volume: 96,753
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 3.96
• Enterprise Value/Ebitda: 10.02
• 1Y Price Target: $182.80
• Price Target Upside: 3.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $201.00 ▲(13.39% Upside)

UniFirst's overall stock score reflects strong financial performance and strategic investments in technology and infrastructure. However, technical indicators suggest a cautious outlook, and valuation metrics indicate moderate pricing. The recent credit facility agreement adds financial flexibility, supporting future growth prospects.

Positive Factors

Earnings

Adjusted EPS increased 14%, to $1.40, above the consensus estimate.

Guidance

Fiscal 2025 adjusted EPS guidance was raised, now calling for adjusted EPS above the consensus estimate.

Operating Performance

Better-than-expected operating performance in the core laundry business is expected to continue.

Negative Factors

Operating 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 Outlook

Management reduced its top-line outlook by $5.5 million at the midpoint.

Sales

Year-over-year growth in retention levels and new account sales has been more than offset by the challenges.

UniFirst Business Overview & Revenue Model

Company Description

UniFirst Corporation is a leading provider of workplace uniforms and related products in North America. The company operates primarily in the rental and leasing of uniforms, protective clothing, and other work apparel, catering to a diverse range of industries including manufacturing, healthcare, and food service. UniFirst also offers facility services such as floor mats, restroom supplies, and first aid products, positioning itself as a comprehensive provider of workplace solutions.

How the Company Makes Money

UniFirst 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 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

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

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

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.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.43B	2.23B	2.00B	1.83B	1.80B
Gross Profit	847.60M	751.75M	694.37M	684.94M	639.23M
EBITDA	325.01M	262.03M	244.10M	302.76M	278.36M
Net Income	145.47M	103.67M	103.40M	151.11M	135.77M
Balance Sheet
Total Assets	2.70B	2.57B	2.43B	2.38B	2.20B
Cash, Cash Equivalents and Short-Term Investments	175.08M	89.60M	376.40M	512.87M	474.84M
Total Debt	68.81M	64.76M	51.67M	43.17M	41.83M
Total Liabilities	587.90M	566.01M	512.10M	508.11M	457.90M
Stockholders Equity	2.11B	2.00B	1.92B	1.87B	1.74B
Cash Flow
Free Cash Flow	134.85M	43.77M	-21.67M	78.66M	169.97M
Operating Cash Flow	295.27M	215.76M	122.65M	212.30M	286.68M
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: Positive
• Last Price: 177.27
• 50DMA: Positive
• 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 UNF, the sentiment is Positive. The current price of 177.27 is above the 20-day moving average (MA) of 174.27, above the 50-day MA of 176.51, and below the 200-day MA of 189.74, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 45.68 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
ABM	75 Outperform	$3.04B	39.16	4.30%	2.06%	3.52%	-67.27%
UNF	74 Outperform	$3.13B	21.64	7.15%	0.78%	4.18%	18.93%
CTAS	73 Outperform	$85.83B	48.13	40.13%	0.76%	7.75%	16.21%
ARMK	67 Neutral	$10.36B	29.20	12.00%	1.07%	-0.06%	3.83%
CBZ	65 Neutral	$3.52B	37.58	7.84%	―	46.49%	-25.62%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
BV	60 Neutral	$1.39B	436.12	3.03%	―	-2.99%	-72.13%

UniFirst Corporate Events

UniFirst Secures $300M Credit Facility Agreement

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.