UniFirst (UNF): Examining Valuation After Lower Sales, Earnings and Cautious Guidance

UniFirst (UNF) just reported its fourth-quarter earnings, showing decreases in both sales and net income compared to the previous year. The company’s fiscal 2026 guidance also came in slightly below expectations, prompting a cautious market response.

See our latest analysis for UniFirst.

Shares of UniFirst have been on a volatile ride lately, reflecting investor nerves after the latest earnings and slightly soft guidance. Even with a bit of a pop this week, the 1-year total shareholder return is down 8%, and momentum has faded compared to earlier in the year.

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With UniFirst’s shares lagging this year, but trading at only a modest discount to analyst price targets, the key question becomes whether the current valuation offers a real buying opportunity or if the market has already priced in what is next for growth.

Most Popular Narrative: 2.7% Undervalued

The most widely followed narrative sees UniFirst as trading just below fair value, with a calculated fair price of $178.25 compared to the latest closing price of $173.13. This marginal discount suggests that analysts believe the company's recent performance and forecasts are largely reflected in its current share price.

*Significant investments in technology, specifically an ERP system, are anticipated to enhance efficiency, leading to improved profitability and reduced operational costs once fully implemented. This should impact net margins positively in the long run. Expansion of the distribution center in Owensboro, Kentucky, is expected to improve speed and efficiency in direct sales of uniforms, potentially driving revenue growth through enhanced operational capacity.*

Read the complete narrative.

Why do analysts see room for more value? The outlook hinges on bold future improvements, operational upgrades, and impressive profit targets. Are you curious what precise assumptions fuel this fair value, and what might push it higher or lower in the years ahead? Unpack the detailed financial forecasts and strategic projects underpinning these targets by reading the full narrative.

Result: Fair Value of $178.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, declining customer demand and rising health care costs could undermine the optimistic outlook, putting pressure on both revenue growth and profit margins.

Find out about the key risks to this UniFirst narrative.

Build Your Own UniFirst Narrative

If you'd rather draw your own conclusions or want to dig into the numbers independently, you can create your own narrative in just a couple of minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding UniFirst.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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