UNIFIRST CORP/MA (UNF) Stock Fundamental Analysis
NYSE:UNF - New York Stock Exchange, Inc. - US9047081040 - Common Stock
Overall UNF gets a fundamental rating of 6 out of 10. We evaluated UNF against 83 industry peers in the Commercial Services & Supplies industry. UNF has an excellent financial health rating, but there are some minor concerns on its profitability. UNF is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years UNF always reported a positive cash flow from operatings.
1.2 Ratios
UNF has a Return On Assets of 5.41%. This is in the better half of the industry: UNF outperforms 68.29% of its industry peers.
With a decent Return On Equity value of 6.85%, UNF is doing good in the industry, outperforming 62.20% of the companies in the same industry.
UNF has a Return On Invested Capital (6.12%) which is comparable to the rest of the industry.
UNF had an Average Return On Invested Capital over the past 3 years of 5.81%. This is below the industry average of 10.08%.
The last Return On Invested Capital (6.12%) for UNF is above the 3 year average (5.81%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 6.00%, UNF is doing good in the industry, outperforming 71.95% of the companies in the same industry.
UNF's Profit Margin has declined in the last couple of years.
UNF has a Operating Margin (8.09%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of UNF has declined.
UNF has a Gross Margin (35.33%) which is in line with its industry peers.
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.
The number of shares outstanding for UNF has been reduced compared to 1 year ago.
Compared to 5 years ago, UNF has less shares outstanding
There is no outstanding debt for UNF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 6.86 indicates that UNF is not in any danger for bankruptcy at the moment.
UNF has a Altman-Z score of 6.86. This is amongst the best in the industry. UNF outperforms 91.46% of its industry peers.
There is no outstanding debt for UNF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.86 |
ROIC/WACC0.66
WACC9.25%
2.3 Liquidity
A Current Ratio of 3.51 indicates that UNF has no problem at all paying its short term obligations.
The Current ratio of UNF (3.51) is better than 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 better Quick ratio (2.92) than 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.
The Revenue has been growing slightly by 6.74% in the past year.
Measured over the past years, UNF shows a small growth in Revenue. The Revenue has been growing by 6.05% on average per year.
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
The Earnings Per Share is expected to grow by 6.35% on average over the next years.
The Revenue is expected to grow by 3.03% on average over the next years.
EPS Next Y-6.94%
EPS Next 2Y1.95%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue Next Year0.49%
Revenue Next 2Y2.22%
Revenue Next 3Y3.03%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.16, the valuation of UNF can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of UNF is on the same level as its industry peers.
UNF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.19, UNF can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, UNF is valued a bit cheaper than 60.98% of the companies in the same industry.
UNF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.16 | ||
| Fwd PE | 26.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNF is valued a bit cheaper than 60.98% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as UNF.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.56 | ||
| EV/EBITDA | 11.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.95%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, UNF is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.09, UNF pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.61, UNF pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
On average, the dividend of UNF grows each year by 23.51%, which is quite nice.
UNF has paid a dividend for at least 10 years, which is 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.
The dividend of UNF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.18%
EPS Next 2Y1.95%
EPS Next 3Y6.35%
UNIFIRST CORP/MA
NYSE:UNF (1/21/2025, 6:40:00 PM)
After market: 226.75 0 (0%)226.75
+4.29 (+1.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.43%
Inst Owner Change0.01%
Ins Owners0.37%
Ins Owner Change-0.7%
Market Cap4.21B
Analysts49.23
Price Target189.21 (-16.56%)
Short Float %1.24%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend1.25
Dividend Growth(5Y)23.51%
DP16.18%
Div Incr Years7
Div Non Decr Years34
Ex-DateN/A
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)0%
PT rev (3m)-2.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.16 | ||
| Fwd PE | 26.19 | ||
| P/S | 1.73 | ||
| P/FCF | 27.56 | ||
| P/OCF | 13.68 | ||
| P/B | 1.97 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 11.58 |
EPS(TTM)8.35
EY3.68%
EPS(NY)8.66
Fwd EY3.82%
FCF(TTM)8.23
FCFY3.63%
OCF(TTM)16.57
OCFY7.31%
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 | 6.86 |
F-Score9
WACC9.25%
ROIC/WACC0.66
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-6.94%
EPS Next 2Y1.95%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue 1Y (TTM)6.74%
Revenue growth 3Y9.95%
Revenue growth 5Y6.05%
Sales Q2Q%1.92%
Revenue Next Year0.49%
Revenue Next 2Y2.22%
Revenue Next 3Y3.03%
Revenue Next 5YN/A
EBIT growth 1Y16.22%
EBIT growth 3Y-0.08%
EBIT growth 5Y-5.05%
EBIT Next Year74.23%
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%