UniFirst Corporation
UniFirst Corporation Fundamental Analysis
UniFirst Corporation (UNF) shows weak financial fundamentals with a PE ratio of 29.31, profit margin of 5.70%, and ROE of 6.45%. The company generates $2.6B in annual revenue with weak year-over-year growth of 0.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UNF's fundamental strength across five key dimensions:
Efficiency Score
WeakUNF struggles to generate sufficient returns from assets.
Valuation Score
ModerateUNF shows balanced valuation metrics.
Growth Score
WeakUNF faces weak or negative growth trends.
Financial Health Score
ExcellentUNF maintains a strong and stable balance sheet.
Profitability Score
WeakUNF struggles to sustain strong margins.
Key Financial Metrics
Is UNF Expensive or Cheap?
P/E Ratio
UNF trades at 29.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, UNF's PEG of -5.54 indicates potential undervaluation.
Price to Book
The market values UniFirst Corporation at 1.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.37 times EBITDA. This signals the market has high growth expectations.
How Well Does UNF Make Money?
Net Profit Margin
For every $100 in sales, UniFirst Corporation keeps $5.70 as profit after all expenses.
Operating Margin
Core operations generate 7.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.45 in profit for every $100 of shareholder equity.
ROA
UniFirst Corporation generates $5.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
UniFirst Corporation produces operating cash flow of $266.53M, showing steady but balanced cash generation.
Free Cash Flow
UniFirst Corporation produces free cash flow of $97.95M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.32 in free cash annually.
FCF Yield
UNF converts 2.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How UNF Stacks Against Its Sector Peers
| Metric | UNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.31 | 26.49 | Worse (Expensive) |
| ROE | 6.45% | 1307.00% | Weak |
| Net Margin | 5.70% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 3.23 | 10.48 | Strong Liquidity |
| ROA | 5.07% | -1549793.00% (disorted) | Weak |
UNF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews UniFirst Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.71%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
11.55%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
5.36%
Industry Style: Cyclical, Value, Infrastructure
Growing