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UniFirst (UNF)
NYSE:UNF
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UniFirst
(NYSE:UNF)
Rating:70Outperform
Price Target:
$188.00
▲(7.42%Upside)
Positive Factors
Earnings
Adjusted EPS increased 14%, to $1.40, above the consensus estimate.
Financial Performance
Underlying core laundry EBITDA margins continue to trend positively after excluding some one-time advisory and legal costs that impacted the quarter.
Negative Factors
Market Outlook
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)
Market Cap
$3.12B
Dividend Yield0.8%
Average Volume (3M)127.44K
Price to Earnings (P/E)21.5
Beta (1Y)0.62
Revenue Growth4.17%
EPS Growth18.93%
CountryUS
Employees16,000
SectorIndustrials
Sector Strength86
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.17
Shares Outstanding15,006,502
10 Day Avg. Volume178,147
30 Day Avg. Volume127,439
Financial Highlights & Ratios
PEG Ratio28.69
Price to Book (P/B)1.56
Price to Sales (P/S)0.00
P/FCF Ratio71.40
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit4.00
Enterprise Value/Ebitda2.48
Forecast
1Y Price Target
$179.33Price Target Upside2.47% Upside
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 Earnings Call Summary
Earnings Call Date:Jul 02, 2025
(Q3-2025)
| % Change Since: -8.09%|
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 exhibits strong financial performance with consistent revenue growth and robust profitability. The company maintains a solid financial position with low leverage and a high equity ratio, ensuring long-term stability and effective cash flow generation.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 |
| EBITDA | 333.91M | 325.01M | 262.03M | 244.10M | 302.76M | 278.36M |
| Net Income | 150.26M | 145.47M | 103.67M | 103.40M | 151.11M | 135.77M |
Balance Sheet | ||||||
| Total Assets | 2.62B | 2.70B | 2.57B | 2.43B | 2.38B | 2.20B |
| Cash, Cash Equivalents and Short-Term Investments | 101.93M | 175.08M | 89.60M | 376.40M | 512.87M | 474.84M |
| Total Debt | 71.78M | 68.81M | 64.76M | 51.67M | 43.17M | 41.83M |
| Total Liabilities | 571.27M | 587.90M | 566.01M | 512.10M | 508.11M | 457.90M |
| Stockholders Equity | 2.05B | 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
175.01
Price Trends
184.17
Negative
188.96
Negative
192.45
Negative
Market Momentum
-1.36
Positive
37.45
Neutral
34.50
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 175.01 is below the 20-day moving average (MA) of 185.44, below the 50-day MA of 184.17, and below the 200-day MA of 192.45, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 37.45 is Neutral, neither overbought nor oversold. The STOCH value of 34.50 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $88.57B | 50.90 | 40.15% | 0.71% | 7.79% | 19.09% | |
71 Outperform | $4.01B | 50.17 | 6.25% | ― | 32.27% | -40.50% | |
71 Outperform | $11.21B | 32.93 | 11.77% | 0.98% | -3.47% | -45.03% | |
70 Outperform | $3.12B | 21.49 | 7.15% | 0.80% | 4.17% | 18.93% | |
68 Neutral | $1.50B | 85.78 | 2.56% | ― | -2.85% | -108.99% | |
64 Neutral | kr64.02B | 12.60 | 1.54% | 8.99% | 0.04% | -3.90% | |
61 Neutral | $2.98B | 38.37 | 4.30% | 2.21% | 3.52% | -67.27% |
* Industrials Sector Average
Performance Comparison
UNF
UniFirst
175.01
7.05
4.20%
ABM
ABM Industries
47.93
-0.67
-1.38%
CBZ
CBIZ
73.76
-0.32
-0.43%
CTAS
Cintas
219.36
42.94
24.34%
ARMK
ARAMARK Holdings
42.79
10.06
30.74%
BV
BrightView Holdings
15.70
2.96
23.23%
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.