UNIFIRST CORP/MA (UNF) Stock Fundamental Analysis
NYSE:UNF - New York Stock Exchange, Inc. - US9047081040 - Common Stock - Currency: USD
Taking everything into account, UNF scores 6 out of 10 in our fundamental rating. UNF was compared to 84 industry peers in the Commercial Services & Supplies industry. UNF is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, UNF is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year UNF was profitable.
In the past year UNF had a positive cash flow from operations.
In the past 5 years UNF has always been profitable.
UNF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UNF has a better Return On Assets (5.41%) than 68.29% of its industry peers.
UNF has a better Return On Equity (6.85%) than 62.20% of its industry peers.
UNF has a Return On Invested Capital of 6.12%. This is comparable to the rest of the industry: UNF outperforms 53.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNF is below the industry average of 10.12%.
The 3 year average ROIC (5.81%) for UNF is below the current ROIC(6.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 6.85% | ||
| ROIC | 6.12% |
ROA(3y)4.56%
ROA(5y)5.24%
ROE(3y)5.82%
ROE(5y)6.67%
ROIC(3y)5.81%
ROIC(5y)6.2%
1.3 Margins
The Profit Margin of UNF (6.00%) is better than 73.17% of its industry peers.
In the last couple of years the Profit Margin of UNF has declined.
UNF's Operating Margin of 8.09% is in line compared to the rest of the industry. UNF outperforms 59.76% of its industry peers.
UNF's Operating Margin has declined in the last couple of years.
The Gross Margin of UNF (35.33%) is comparable to the rest of the industry.
UNF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.09% | ||
| PM (TTM) | 6% | ||
| GM | 35.33% |
OM growth 3Y-9.12%
OM growth 5Y-10.46%
PM growth 3Y-10.2%
PM growth 5Y-9.55%
GM growth 3Y-2.36%
GM growth 5Y-1.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UNF is destroying value.
Compared to 1 year ago, UNF has less shares outstanding
The number of shares outstanding for UNF has been reduced compared to 5 years ago.
UNF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
UNF has an Altman-Z score of 6.69. This indicates that UNF is financially healthy and has little risk of bankruptcy at the moment.
UNF has a better Altman-Z score (6.69) than 91.46% of its industry peers.
UNF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.69 |
ROIC/WACC0.68
WACC9.06%
2.3 Liquidity
UNF has a Current Ratio of 3.51. This indicates that UNF is financially healthy and has no problem in meeting its short term obligations.
UNF has a Current ratio of 3.51. This is amongst the best in the industry. UNF outperforms 85.37% of its industry peers.
UNF has a Quick Ratio of 2.92. This indicates that UNF is financially healthy and has no problem in meeting its short term obligations.
UNF has a Quick ratio of 2.92. This is amongst the best in the industry. UNF outperforms 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.51 | ||
| Quick Ratio | 2.92 |
3. Growth
3.1 Past
UNF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.30%, which is quite good.
The Earnings Per Share has been decreasing by -0.19% on average over the past years.
UNF shows a small growth in Revenue. In the last year, the Revenue has grown by 6.74%.
The Revenue has been growing slightly by 6.05% on average over the past years.
EPS 1Y (TTM)16.3%
EPS 3Y1.61%
EPS 5Y-0.19%
EPS Q2Q%0.84%
Revenue 1Y (TTM)6.74%
Revenue growth 3Y9.95%
Revenue growth 5Y6.05%
Sales Q2Q%1.92%
3.2 Future
UNF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.95% yearly.
The Revenue is expected to grow by 3.04% on average over the next years.
EPS Next Y-5.81%
EPS Next 2Y2.01%
EPS Next 3Y3.95%
EPS Next 5YN/A
Revenue Next Year0.33%
Revenue Next 2Y2.06%
Revenue Next 3Y3.04%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.18, the valuation of UNF can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as UNF.
The average S&P500 Price/Earnings ratio is at 29.63. UNF is around the same levels.
UNF is valuated rather expensively with a Price/Forward Earnings ratio of 24.26.
Based on the Price/Forward Earnings ratio, UNF is valued a bit cheaper than the industry average as 62.20% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. UNF is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 24.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNF is valued a bit cheaper than the industry average as 62.20% of the companies are valued more expensively.
UNF's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.56 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.01%
EPS Next 3Y3.95%
5. Dividend
5.1 Amount
UNF has a yearly dividend return of 0.66%, which is pretty low.
UNF's Dividend Yield is a higher than the industry average which is at 2.12.
Compared to an average S&P500 Dividend Yield of 2.29, UNF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
On average, the dividend of UNF grows each year by 23.51%, which is quite nice.
UNF has been paying a dividend for at least 10 years, so it has a reliable track record.
UNF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)23.51%
Div Incr Years7
Div Non Decr Years34
5.3 Sustainability
UNF pays out 16.18% of its income as dividend. This is a sustainable payout ratio.
UNF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.18%
EPS Next 2Y2.01%
EPS Next 3Y3.95%
210.29
-3.43 (-1.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.78%
Inst Owner Change0.67%
Ins Owners0.74%
Ins Owner Change-0.61%
Market Cap3.91B
Analysts49.23
Price Target205.28 (-2.38%)
Short Float %1.12%
Short Ratio1.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend1.25
Dividend Growth(5Y)23.51%
DP16.18%
Div Incr Years7
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14%
Min EPS beat(2)7.04%
Max EPS beat(2)20.97%
EPS beat(4)3
Avg EPS beat(4)7.95%
Min EPS beat(4)-15.23%
Max EPS beat(4)20.97%
EPS beat(8)5
Avg EPS beat(8)4.75%
EPS beat(12)7
Avg EPS beat(12)1.7%
EPS beat(16)10
Avg EPS beat(16)2.52%
Revenue beat(2)0
Avg Revenue beat(2)-0.8%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)-0.32%
Revenue beat(8)2
Avg Revenue beat(8)-0.15%
Revenue beat(12)5
Avg Revenue beat(12)0.14%
Revenue beat(16)8
Avg Revenue beat(16)0.33%
PT rev (1m)8.49%
PT rev (3m)6.11%
EPS NQ rev (1m)-3.97%
EPS NQ rev (3m)-11.73%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-2.53%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.18 | ||
| Fwd PE | 24.26 | ||
| P/S | 1.6 | ||
| P/FCF | 25.56 | ||
| P/OCF | 12.69 | ||
| P/B | 1.83 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 11.1 |
EPS(TTM)8.35
EY3.97%
EPS(NY)8.67
Fwd EY4.12%
FCF(TTM)8.23
FCFY3.91%
OCF(TTM)16.57
OCFY7.88%
SpS131.33
BVpS114.9
TBVpS73.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 6.85% | ||
| ROCE | 8.09% | ||
| ROIC | 6.12% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 10% | ||
| OM | 8.09% | ||
| PM (TTM) | 6% | ||
| GM | 35.33% | ||
| FCFM | 6.26% |
ROA(3y)4.56%
ROA(5y)5.24%
ROE(3y)5.82%
ROE(5y)6.67%
ROIC(3y)5.81%
ROIC(5y)6.2%
ROICexc(3y)6.45%
ROICexc(5y)7.44%
ROICexgc(3y)9.67%
ROICexgc(5y)11.11%
ROCE(3y)7.67%
ROCE(5y)8.18%
ROICexcg growth 3Y-9.32%
ROICexcg growth 5Y-12.13%
ROICexc growth 3Y-10.43%
ROICexc growth 5Y-12.69%
OM growth 3Y-9.12%
OM growth 5Y-10.46%
PM growth 3Y-10.2%
PM growth 5Y-9.55%
GM growth 3Y-2.36%
GM growth 5Y-1.17%
F-Score9
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 108.72% | ||
| Cap/Sales | 6.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.54% | ||
| Profit Quality | 104.47% | ||
| Current Ratio | 3.51 | ||
| Quick Ratio | 2.92 | ||
| Altman-Z | 6.69 |
F-Score9
WACC9.06%
ROIC/WACC0.68
Cap/Depr(3y)129.32%
Cap/Depr(5y)125.11%
Cap/Sales(3y)7.17%
Cap/Sales(5y)7.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.3%
EPS 3Y1.61%
EPS 5Y-0.19%
EPS Q2Q%0.84%
EPS Next Y-5.81%
EPS Next 2Y2.01%
EPS Next 3Y3.95%
EPS Next 5YN/A
Revenue 1Y (TTM)6.74%
Revenue growth 3Y9.95%
Revenue growth 5Y6.05%
Sales Q2Q%1.92%
Revenue Next Year0.33%
Revenue Next 2Y2.06%
Revenue Next 3Y3.04%
Revenue Next 5YN/A
EBIT growth 1Y16.22%
EBIT growth 3Y-0.08%
EBIT growth 5Y-5.05%
EBIT Next Year75.73%
EBIT Next 3Y28.42%
EBIT Next 5YN/A
FCF growth 1Y1661.15%
FCF growth 3Y19.68%
FCF growth 5Y-3.64%
OCF growth 1Y115.91%
OCF growth 3Y11.62%
OCF growth 5Y0.92%