Education
About Us
Working with TipRanks
Follow Us
UniFirst (UNF)
NYSE:UNF
Top Page
UniFirst
(NYSE:UNF)
Rating:84Outperform
Price Target:
$216.00
▲( 16.97% Upside)
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.
Guidance
Fiscal 2025 adjusted EPS guidance was raised, now calling for adjusted EPS above the consensus estimate.
Negative Factors
Growth Challenges
Management noted that organic growth was to be hard to come by in F2025.
Organic Revenue Growth
Initial F2025 revenue guidance assumes less than 2% Core Laundry organic revenue growth, which is a deceleration.
Revenue Outlook
Management reduced its top-line outlook by $5.5 million at the midpoint.
UniFirst (UNF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.35B
Dividend Yield0.72%
Average Volume (3M)106.72K
Price to Earnings (P/E)23.4
Beta (1Y)0.61
Revenue Growth5.04%
EPS Growth31.69%
CountryUS
Employees16,000
SectorIndustrials
Sector Strength90
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.40
Shares Outstanding15,006,502
10 Day Avg. Volume72,033
30 Day Avg. Volume106,723
Financial Highlights & Ratios
PEG Ratio8.07
Price to Book (P/B)1.59
Price to Sales (P/S)0.00
P/FCF Ratio16.70
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit3.95
Enterprise Value/Ebitda2.44
Forecast
1Y Price Target
$181.67Price Target Upside-1.62% Downside
Rating ConsensusHold
Number of Analyst Covering4
UniFirst Business Overview & Revenue Model
Company DescriptionUniFirst Corporation (UNF) is a leading provider of workplace uniforms and facility services, catering to businesses of all sizes across various industries. The company designs, manufactures, personalizes, rents, and sells a wide range of uniforms and protective clothing, including workwear, casual apparel, and specialty garments. Additionally, UniFirst offers ancillary services such as facility service products, including floor mats, mops, and restroom supplies. With a strong emphasis on quality and customer service, UniFirst operates through a network of service locations in the United States, Canada, and Europe.
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 Financial Statement Overview
Summary
UniFirst shows strong financial performance with consistent revenue growth, a robust balance sheet, and excellent cash flow generation. The company maintains a low debt-to-equity ratio, ensuring financial stability. However, rising operational costs need monitoring.Income Statement
UniFirst has demonstrated consistent revenue growth, with a Revenue Growth Rate of 1% TTM (Trailing-Twelve-Months). The Gross Profit Margin stands at 32.72% TTM, indicating strong cost management. The Net Profit Margin is solid at 6.13% TTM. However, there is a slight decrease in both EBIT Margin (7.72% TTM) and EBITDA Margin (13.68% TTM), which suggests rising operational costs that need monitoring.85
Very Positive
Balance Sheet
The company's financial health is robust, with a low Debt-to-Equity Ratio of 0.03 TTM, highlighting minimal leverage risk. Return on Equity (ROE) is stable at 7.01% TTM, reflecting efficient equity usage for generating profits. An Equity Ratio of 78.42% TTM showcases a strong equity base, ensuring financial stability.90
Very Positive
Cash Flow
UniFirst's cash flow performance is strong, with Free Cash Flow Growth Rate at 70.05% TTM, indicating significant improvement in cash generation. The Operating Cash Flow to Net Income Ratio is robust at 2.11 TTM, and the Free Cash Flow to Net Income Ratio is 1.53 TTM, both showing effective cash conversion from profits.88
Very Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.45B | 2.43B | 2.23B | 2.00B | 1.83B | 1.80B | Gross Profit |
| 801.69M | 847.60M | 751.75M | 694.37M | 684.94M | 639.23M | EBIT |
| 189.14M | 183.58M | 133.51M | 134.28M | 195.82M | 172.73M | EBITDA |
| 333.91M | 325.01M | 262.03M | 244.10M | 302.76M | 278.36M | Net Income Common Stockholders |
| 150.26M | 145.47M | 103.67M | 103.40M | 151.11M | 135.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 200.98M | 175.08M | 89.60M | 376.40M | 512.87M | 474.84M | Total Assets |
| 2.73B | 2.70B | 2.57B | 2.43B | 2.38B | 2.20B | Total Debt |
| 70.88M | 68.81M | 64.76M | 51.67M | 43.17M | 41.83M | Net Debt |
| -121.29M | -92.76M | -14.68M | -324.73M | 86.35M | 83.66M | Total Liabilities |
| 589.81M | 587.90M | 566.01M | 512.10M | 508.11M | 457.90M | Stockholders Equity |
| 2.14B | 2.11B | 2.00B | 1.92B | 1.87B | 1.74B |
| Cash Flow | Free Cash Flow | ||||
| 196.81M | 134.85M | 43.77M | -21.67M | 78.66M | 169.97M | Operating Cash Flow |
| 316.85M | 295.27M | 215.76M | 122.65M | 212.30M | 286.68M | Investing Cash Flow |
| -156.01M | -162.24M | -487.65M | -186.51M | -141.47M | -157.62M | Financing Cash Flow |
| -56.99M | -50.36M | -25.84M | -69.44M | -34.26M | -41.10M |
UniFirst Technical Analysis
Negative
184.66
Price Trends
181.24
Positive
196.02
Negative
192.49
Negative
Market Momentum
1.77
Negative
53.42
Neutral
49.28
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 184.66 is above the 20-day moving average (MA) of 182.92, above the 50-day MA of 181.24, and below the 200-day MA of 192.49, indicating a neutral trend. The MACD of 1.77 indicates Negative momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $3.35B | 23.35 | 7.17% | 0.72% | 5.04% | 31.69% | |
76 Outperform | $89.50B | 51.43 | 40.15% | 0.68% | 7.79% | 19.09% | |
74 Outperform | $4.00B | 48.79 | 6.25% | ― | 32.27% | -40.50% | |
74 Outperform | $1.52B | 85.78 | 2.56% | ― | -2.85% | -108.99% | |
74 Outperform | $3.20B | 40.50 | 4.46% | 1.91% | 2.81% | -67.57% | |
71 Outperform | $10.43B | 30.61 | 11.77% | 1.03% | -3.47% | -45.03% | |
64 Neutral | $4.39B | 11.81 | 5.17% | 249.38% | 3.98% | -12.17% |
* Industrials Sector Average
Performance Comparison
UNF
UniFirst
184.66
23.34
14.47%
ABM
ABM Industries
51.35
5.38
11.70%
CBZ
CBIZ
72.25
-6.74
-8.53%
CTAS
Cintas
221.66
52.24
30.83%
ARMK
ARAMARK Holdings
38.88
7.26
22.96%
BV
BrightView Holdings
15.95
1.73
12.17%
UniFirst Earnings Call Summary
Earnings Call Date:Apr 02, 2025
(Q2-2025)
| % Change Since: 5.30%|
Next Earnings Date:Jun 25, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with significant improvements in revenue, profitability, and cash flow. Customer retention and new business installations showed positive trends, along with strategic investments and expansions. However, there were challenges such as declining net wearer levels, higher health care costs, and reduced margins in the specialty garment segment.Q2-2025 Updates
Positive Updates
Revenue and Profitability Growth
Second quarter consolidated revenues were $602.2 million, an increase of 1.9% from fiscal 2024. Operating income and adjusted EBITDA increased by 11.7% and 6.3%, respectively. Net income for the quarter increased to $24.5 million from $20.5 million.
Improved Cash Flow
Operating cash flow year-to-date was up 20.2% compared to the same period a year ago, primarily due to improved profitability and lower working capital needs.
Customer Retention and New Business
Notable improvements in customer retention compared to the same quarter a year ago, and more new business was installed than a year ago by a solid margin.
Specialty Garment and First Aid Segments Growth
Revenues from the specialty garment segment increased by 2.2% due to strong European nuclear operations. The first aid segment's revenues increased by 10.6%, driven by strong growth in van operations.
Strategic Investments and Expansion
Expansion of the distribution center in Owensboro, Kentucky, to improve speed and efficiency for direct sales of uniforms. Continued investments in growth and operational execution.
Negative Updates
Net Wearer Levels Decline
Net wearer levels for existing customers declined in the quarter, showing some incremental weakness compared to the same quarter last year.
Higher Health Care Costs
Higher health care costs partially offset improvements in operating income and adjusted EBITDA.
Challenges in Specialty Garment Segment
Operating margin for the specialty garment segment decreased to 16.7% from 22.8% in the prior year.
Company Guidance
During the UniFirst Second Quarter 2025 Earnings Conference Call, the company provided guidance reflecting a positive trajectory in several financial metrics. UniFirst reported consolidated revenues of $602.2 million, marking a 1.9% increase from fiscal 2024, with organic growth at 2.3%. Operating income rose significantly by 11.7%, reaching $31.2 million, while adjusted EBITDA improved by 6.3% to $68.9 million, compared to the same quarter last year. The company also noted a 20.2% increase in operating cash flow year-to-date. For the full fiscal year 2025, UniFirst anticipates revenues between $2.422 billion and $2.432 billion, and diluted earnings per share (EPS) ranging from $7.30 to $7.70. This outlook reflects ongoing improvements in core laundry operations and an updated assumption of $12 million in key initiative costs, slightly revised down from prior estimates.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.