NYSE:UNF

Stock Analysis Report

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Executive Summary

UniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States, Europe, and Canada.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

How has UniFirst's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UNF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

UNF

0.4%

US Commercial Services

0.5%

US Market


1 Year Return

-0.5%

UNF

9.1%

US Commercial Services

18.0%

US Market

Return vs Industry: UNF underperformed the US Commercial Services industry which returned 9.9% over the past year.

Return vs Market: UNF underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

UNFIndustryMarket
7 Day0.7%0.4%0.5%
30 Day10.3%10.5%4.5%
90 Day25.2%25.3%19.7%
1 Year-0.03%-0.5%10.7%9.1%20.5%18.0%
3 Year47.1%45.8%54.7%44.8%46.3%36.8%
5 Year82.1%80.0%98.1%78.1%87.2%66.8%

Price Volatility Vs. Market

How volatile is UniFirst's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is UniFirst undervalued compared to its fair value and its price relative to the market?

25.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UNF ($199.35) is trading above our estimate of fair value ($173.53)

Significantly Below Fair Value: UNF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UNF is good value based on its PE Ratio (25.1x) compared to the US Commercial Services industry average (27.3x).

PE vs Market: UNF is poor value based on its PE Ratio (25.1x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: UNF is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: UNF is overvalued based on its PB Ratio (2.2x) compared to the US Commercial Services industry average (1.5x).


Next Steps

Future Growth

How is UniFirst forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNF's forecast earnings growth (5.2% per year) is above the savings rate (2.2%).

Earnings vs Market: UNF's earnings (5.2% per year) are forecast to grow slower than the US market (24.1% per year).

High Growth Earnings: UNF's earnings are forecast to grow, but not significantly.

Revenue vs Market: UNF's revenue (1% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: UNF's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UNF's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

How has UniFirst performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNF has high quality earnings.

Growing Profit Margin: UNF's current net profit margins (8.1%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: UNF's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: UNF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UNF had negative earnings growth (-11%) over the past year, making it difficult to compare to the Commercial Services industry average (-6.5%).


Return on Equity

High ROE: UNF's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is UniFirst's financial position?


Financial Position Analysis

Short Term Liabilities: UNF's short term assets ($925.5M) exceed its short term liabilities ($196.2M).

Long Term Liabilities: UNF's short term assets ($925.5M) exceed its long term liabilities ($248.9M).


Debt to Equity History and Analysis

Debt Level: UNF is debt free.

Reducing Debt: UNF has no debt compared to 5 years ago when its debt to equity ratio was 0.3%.

Debt Coverage: UNF has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: UNF has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is UniFirst current dividend yield, its reliability and sustainability?

0.50%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: UNF's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: UNF's dividend (0.5%) is low compared to the top 25% of dividend payers in the US market (4.31%).


Stability and Growth of Payments

Stable Dividend: UNF is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: UNF is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: UNF is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UNF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Steve Sintros (46 yo)

3.08yrs

Tenure

US$2,722,142

Compensation

Mr. Steven S. Sintros, also known as Steve, has been President and Chief Executive Officer of UniFirst Corporation since July 31, 2017. Mr. Sintros has overall responsibility for management of UniFirst Cor ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.72M) is below average for companies of similar size in the US market ($USD5.69M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Sintros
President3.08yrsUS$2.72m0.017%
$ 642.1k
Shane O'Connor
CFO & Senior VP2.58yrsUS$894.92kno data
David Katz
Senior Vice President of Sales & Marketingno dataUS$981.61k0.017%
$ 646.6k
David DiFillippo
Senior Vice President of Operations18.58yrsUS$1.11m0.035%
$ 1.3m
Cynthia Croatti
Executive VP25.58yrsUS$1.56m0.86%
$ 32.5m
Adam Soreff
Director of Marketing & Communicationsno datano datano data
Michael Croatti
Senior Vice President of Operations5.58yrsno data6.1%
$ 229.8m
William Ross
Senior Vice President of Operations4.58yrsno data0.0016%
$ 59.9k
Scott Chase
Secretaryno datano datano data

5.1yrs

Average Tenure

56yo

Average Age

Experienced Management: UNF's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Sintros
President3.08yrsUS$2.72m0.017%
$ 642.1k
Cynthia Croatti
Executive VP25.58yrsUS$1.56m0.86%
$ 32.5m
Phillip Cohen
Independent Director19.75yrsUS$231.73k0.077%
$ 2.9m
Kathleen Camilli
Independent Director8.58yrsUS$207.23k0.013%
$ 477.2k
Raymond Zemlin
Independent Chairman of the Board2.83yrsUS$348.73k0.011%
$ 398.8k
Thomas Postek
Independent Director12.58yrsUS$205.73k0.17%
$ 6.3m
Michael Iandoli
Independent Director13.58yrsUS$216.25k0.026%
$ 996.9k

12.6yrs

Average Tenure

65yo

Average Age

Experienced Board: UNF's board of directors are seasoned and experienced ( 12.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UNF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

UniFirst Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UniFirst Corporation
  • Ticker: UNF
  • Exchange: NYSE
  • Founded: 1936
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$3.766b
  • Shares outstanding: 18.89m
  • Website: https://www.unifirst.com

Number of Employees


Location

  • UniFirst Corporation
  • 68 Jonspin Road
  • Wilmington
  • Massachusetts
  • 1887
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UNFNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1983
U1NDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1983

Biography

UniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States, Europe, and Canada. The company operates through U.S. Rental and Cleaning, Canadian Rental and Clean ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 11:32
End of Day Share Price2020/08/13 00:00
Earnings2020/05/30
Annual Earnings2019/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.