UNIFIRST CORP/MA (UNF) Stock Fundamental Analysis
NYSE:UNF - New York Stock Exchange, Inc. - US9047081040 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to UNF. UNF was compared to 84 industry peers in the Commercial Services & Supplies industry. While UNF has a great health rating, its profitability is only average at the moment. UNF is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
UNF had positive earnings in the past year.
UNF had a positive operating cash flow in the past year.
UNF had positive earnings in each of the past 5 years.
In the past 5 years UNF always reported a positive cash flow from operatings.
1.2 Ratios
UNF has a Return On Assets of 5.50%. This is in the better half of the industry: UNF outperforms 72.62% of its industry peers.
With a decent Return On Equity value of 6.98%, UNF is doing good in the industry, outperforming 64.29% of the companies in the same industry.
UNF's Return On Invested Capital of 5.96% is in line compared to the rest of the industry. UNF outperforms 59.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNF is significantly below the industry average of 11.08%.
The 3 year average ROIC (5.81%) for UNF is below the current ROIC(5.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 6.98% | ||
| ROIC | 5.96% |
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
UNF has a better Profit Margin (6.18%) than 72.62% of its industry peers.
UNF's Profit Margin has declined in the last couple of years.
The Operating Margin of UNF (7.98%) is better than 60.71% of its industry peers.
UNF's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 36.16%, UNF is doing good in the industry, outperforming 60.71% of the companies in the same industry.
In the last couple of years the Gross Margin of UNF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.98% | ||
| PM (TTM) | 6.18% | ||
| GM | 36.16% |
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 5.78 indicates that UNF is not in any danger for bankruptcy at the moment.
UNF has a better Altman-Z score (5.78) than 85.71% 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 | 5.78 |
ROIC/WACC0.67
WACC8.93%
2.3 Liquidity
A Current Ratio of 3.51 indicates that UNF has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.51, UNF belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
A Quick Ratio of 2.96 indicates that UNF has no problem at all paying its short term obligations.
The Quick ratio of UNF (2.96) is better than 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.51 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.73% over the past year.
Measured over the past years, UNF shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.19% on average per year.
Looking at the last year, UNF shows a small growth in Revenue. The Revenue has grown by 4.17% in the last year.
UNF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.05% yearly.
EPS 1Y (TTM)11.73%
EPS 3Y1.61%
EPS 5Y-0.19%
EPS Q2Q%-2.23%
Revenue 1Y (TTM)4.17%
Revenue growth 3Y9.95%
Revenue growth 5Y6.05%
Sales Q2Q%1.23%
3.2 Future
Based on estimates for the next years, UNF will show a small growth in Earnings Per Share. The EPS will grow by 3.99% on average per year.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y-2.32%
EPS Next 2Y2.36%
EPS Next 3Y3.99%
EPS Next 5YN/A
Revenue Next Year0.12%
Revenue Next 2Y1.84%
Revenue Next 3Y2.82%
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
With a Price/Earnings ratio of 20.60, UNF is valued on the expensive side.
Based on the Price/Earnings ratio, UNF is valued a bit cheaper than the industry average as 63.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.76, UNF is valued a bit cheaper.
A Price/Forward Earnings ratio of 20.01 indicates a rather expensive valuation of UNF.
Based on the Price/Forward Earnings ratio, UNF is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
UNF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UNF is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UNF is valued a bit cheaper than 70.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.53 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
The decent profitability rating of UNF may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.36%
EPS Next 3Y3.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, UNF is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.30, UNF pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.80, UNF pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
The dividend of UNF is nicely growing with an annual growth rate of 23.51%!
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 16.01% 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.
DP16.01%
EPS Next 2Y2.36%
EPS Next 3Y3.99%
174.66
+0.77 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.57%
Inst Owner Change-1.95%
Ins Owners0.73%
Ins Owner Change-0.09%
Market Cap3.24B
Analysts47.69
Price Target182.92 (4.73%)
Short Float %0.94%
Short Ratio1.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend1.25
Dividend Growth(5Y)23.51%
DP16.01%
Div Incr Years7
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.77%
Min EPS beat(2)3.72%
Max EPS beat(2)3.83%
EPS beat(4)4
Avg EPS beat(4)8.89%
Min EPS beat(4)3.72%
Max EPS beat(4)20.97%
EPS beat(8)7
Avg EPS beat(8)6.74%
EPS beat(12)9
Avg EPS beat(12)5.03%
EPS beat(16)10
Avg EPS beat(16)1.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)-1.09%
Revenue beat(4)0
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)-0.32%
Revenue beat(8)0
Avg Revenue beat(8)-0.77%
Revenue beat(12)3
Avg Revenue beat(12)-0.19%
Revenue beat(16)7
Avg Revenue beat(16)0.1%
PT rev (1m)0.05%
PT rev (3m)0.05%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)4.55%
EPS NY rev (1m)0%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 20.01 | ||
| P/S | 1.32 | ||
| P/FCF | 21.53 | ||
| P/OCF | 10.84 | ||
| P/B | 1.49 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)8.48
EY4.86%
EPS(NY)8.73
Fwd EY5%
FCF(TTM)8.11
FCFY4.65%
OCF(TTM)16.11
OCFY9.23%
SpS132.57
BVpS117.3
TBVpS76.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 6.98% | ||
| ROCE | 7.87% | ||
| ROIC | 5.96% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 9.77% | ||
| OM | 7.98% | ||
| PM (TTM) | 6.18% | ||
| GM | 36.16% | ||
| FCFM | 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%
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 Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 104.11% | ||
| Cap/Sales | 6.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.22% | ||
| Profit Quality | 99.05% | ||
| Current Ratio | 3.51 | ||
| Quick Ratio | 2.96 | ||
| Altman-Z | 5.78 |
F-Score9
WACC8.93%
ROIC/WACC0.67
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)11.73%
EPS 3Y1.61%
EPS 5Y-0.19%
EPS Q2Q%-2.23%
EPS Next Y-2.32%
EPS Next 2Y2.36%
EPS Next 3Y3.99%
EPS Next 5YN/A
Revenue 1Y (TTM)4.17%
Revenue growth 3Y9.95%
Revenue growth 5Y6.05%
Sales Q2Q%1.23%
Revenue Next Year0.12%
Revenue Next 2Y1.84%
Revenue Next 3Y2.82%
Revenue Next 5YN/A
EBIT growth 1Y7.96%
EBIT growth 3Y-0.08%
EBIT growth 5Y-5.05%
EBIT Next Year76.35%
EBIT Next 3Y27.12%
EBIT Next 5YN/A
FCF growth 1Y2639.66%
FCF growth 3Y19.68%
FCF growth 5Y-3.64%
OCF growth 1Y69.14%
OCF growth 3Y11.62%
OCF growth 5Y0.92%