UNIFIRST CORP/MA (UNF) Stock Fundamental Analysis
NYSE:UNF - New York Stock Exchange, Inc. - US9047081040 - Common Stock - Currency: USD
Taking everything into account, UNF scores 6 out of 10 in our fundamental rating. UNF was compared to 83 industry peers in the Commercial Services & Supplies industry. UNF is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. UNF is not valued too expensively and it also shows 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.
UNF had positive earnings in each of the past 5 years.
Each year in the past 5 years UNF had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.50%, UNF is doing good in the industry, outperforming 68.67% of the companies in the same industry.
UNF's Return On Equity of 7.01% is fine compared to the rest of the industry. UNF outperforms 60.24% of its industry peers.
The Return On Invested Capital of UNF (6.15%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for UNF is significantly below the industry average of 11.67%.
The last Return On Invested Capital (6.15%) for UNF is above the 3 year average (5.81%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 7.01% | ||
| ROIC | 6.15% |
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's Profit Margin of 6.13% is fine compared to the rest of the industry. UNF outperforms 69.88% of its industry peers.
In the last couple of years the Profit Margin of UNF has declined.
With a Operating Margin value of 8.14%, UNF perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
UNF's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 35.72%, UNF is in the better half of the industry, outperforming 60.24% 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 | 8.14% | ||
| PM (TTM) | 6.13% | ||
| GM | 35.72% |
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
UNF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
UNF has less shares outstanding than it did 1 year ago.
The number of shares outstanding for UNF has been reduced compared to 5 years ago.
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 5.95 indicates that UNF is not in any danger for bankruptcy at the moment.
UNF has a better Altman-Z score (5.95) than 85.54% 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 | 5.95 |
ROIC/WACC0.6
WACC10.18%
2.3 Liquidity
UNF has a Current Ratio of 3.38. This indicates that UNF is financially healthy and has no problem in meeting its short term obligations.
UNF has a Current ratio of 3.38. This is amongst the best in the industry. UNF outperforms 85.54% of its industry peers.
UNF has a Quick Ratio of 2.80. This indicates that UNF is financially healthy and has no problem in meeting its short term obligations.
UNF's Quick ratio of 2.80 is amongst the best of the industry. UNF outperforms 86.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
UNF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.68%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.19% on average over the past years.
Looking at the last year, UNF shows a small growth in Revenue. The Revenue has grown by 5.04% in the last 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)21.68%
EPS 3Y1.61%
EPS 5Y-0.19%
EPS Q2Q%14.75%
Revenue 1Y (TTM)5.04%
Revenue growth 3Y9.95%
Revenue growth 5Y6.05%
Sales Q2Q%1.95%
3.2 Future
The Earnings Per Share is expected to grow by 3.92% on average over the next years.
Based on estimates for the next years, UNF will show a small growth in Revenue. The Revenue will grow by 3.03% on average per year.
EPS Next Y-4.07%
EPS Next 2Y2.3%
EPS Next 3Y3.92%
EPS Next 5YN/A
Revenue Next Year0.25%
Revenue Next 2Y2.02%
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.
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
Based on the Price/Earnings ratio of 21.52, the valuation of UNF can be described as rather expensive.
Based on the Price/Earnings ratio, UNF is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UNF to the average of the S&P500 Index (26.34), we can say UNF is valued inline with the index average.
UNF is valuated rather expensively with a Price/Forward Earnings ratio of 21.06.
Based on the Price/Forward Earnings ratio, UNF is valued a bit cheaper than the industry average as 62.65% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.03. UNF is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 21.06 |
4.2 Price Multiples
UNF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UNF is cheaper than 69.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UNF is valued a bit cheaper than 67.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.87 | ||
| EV/EBITDA | 9.36 |
4.3 Compensation for Growth
UNF has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.3%
EPS Next 3Y3.92%
5. Dividend
5.1 Amount
UNF has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 2.53, UNF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, UNF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of UNF grows each year by 23.51%, which is quite nice.
UNF has been paying a dividend for at least 10 years, so it has a reliable track record.
UNF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)23.51%
Div Incr Years7
Div Non Decr Years34
5.3 Sustainability
UNF pays out 15.96% of its income as dividend. This is a sustainable payout ratio.
UNF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.96%
EPS Next 2Y2.3%
EPS Next 3Y3.92%
183.58
+0.32 (+0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.82%
Inst Owner Change2.27%
Ins Owners0.73%
Ins Owner Change-0.13%
Market Cap3.41B
Analysts48.33
Price Target182.84 (-0.4%)
Short Float %0.91%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.25
Dividend Growth(5Y)23.51%
DP15.96%
Div Incr Years7
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.38%
Min EPS beat(2)3.72%
Max EPS beat(2)7.04%
EPS beat(4)4
Avg EPS beat(4)12.69%
Min EPS beat(4)3.72%
Max EPS beat(4)20.97%
EPS beat(8)6
Avg EPS beat(8)5.22%
EPS beat(12)8
Avg EPS beat(12)4.07%
EPS beat(16)10
Avg EPS beat(16)2.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.18%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)-1.09%
Revenue beat(4)0
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)-0.32%
Revenue beat(8)1
Avg Revenue beat(8)-0.42%
Revenue beat(12)4
Avg Revenue beat(12)0.03%
Revenue beat(16)8
Avg Revenue beat(16)0.27%
PT rev (1m)0%
PT rev (3m)-10.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)0%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 21.06 | ||
| P/S | 1.39 | ||
| P/FCF | 20.87 | ||
| P/OCF | 10.75 | ||
| P/B | 1.59 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 9.36 |
EPS(TTM)8.53
EY4.65%
EPS(NY)8.72
Fwd EY4.75%
FCF(TTM)8.8
FCFY4.79%
OCF(TTM)17.07
OCFY9.3%
SpS132.02
BVpS115.49
TBVpS74.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 7.01% | ||
| ROCE | 8.12% | ||
| ROIC | 6.15% | ||
| ROICexc | 6.7% | ||
| ROICexgc | 10.13% | ||
| OM | 8.14% | ||
| PM (TTM) | 6.13% | ||
| GM | 35.72% | ||
| FCFM | 6.66% |
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 | 107.95% | ||
| Cap/Sales | 6.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.74% | ||
| Profit Quality | 108.65% | ||
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z | 5.95 |
F-Score9
WACC10.18%
ROIC/WACC0.6
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)21.68%
EPS 3Y1.61%
EPS 5Y-0.19%
EPS Q2Q%14.75%
EPS Next Y-4.07%
EPS Next 2Y2.3%
EPS Next 3Y3.92%
EPS Next 5YN/A
Revenue 1Y (TTM)5.04%
Revenue growth 3Y9.95%
Revenue growth 5Y6.05%
Sales Q2Q%1.95%
Revenue Next Year0.25%
Revenue Next 2Y2.02%
Revenue Next 3Y3.03%
Revenue Next 5YN/A
EBIT growth 1Y16.47%
EBIT growth 3Y-0.08%
EBIT growth 5Y-5.05%
EBIT Next Year78.01%
EBIT Next 3Y28.37%
EBIT Next 5YN/A
FCF growth 1Y1056.73%
FCF growth 3Y19.68%
FCF growth 5Y-3.64%
OCF growth 1Y123.25%
OCF growth 3Y11.62%
OCF growth 5Y0.92%