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 has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
Each year in the past 5 years UNF has been profitable.
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 67.47% 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 61.45% of its industry peers.
The Return On Invested Capital of UNF (6.15%) is comparable to the rest of the industry.
UNF had an Average Return On Invested Capital over the past 3 years of 5.81%. This is below the industry average of 10.57%.
The 3 year average ROIC (5.81%) for UNF is below the current ROIC(6.15%), indicating increased profibility in the last year.
| 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 72.29% of its industry peers.
UNF's Profit Margin has declined in the last couple of years.
UNF's Operating Margin of 8.14% is fine compared to the rest of the industry. UNF outperforms 61.45% of its industry peers.
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.
UNF's Gross Margin has been stable in the last couple of years.
| 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
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.
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
UNF has an Altman-Z score of 5.90. This indicates that UNF is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.90, UNF belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
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 | 5.9 |
ROIC/WACC0.69
WACC8.97%
2.3 Liquidity
A Current Ratio of 3.38 indicates that UNF has no problem at all paying its short term obligations.
UNF has a Current ratio of 3.38. This is amongst the best in the industry. UNF outperforms 86.75% of its industry peers.
A Quick Ratio of 2.80 indicates that UNF has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.80, UNF belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.38 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.68% over the past year.
The Earnings Per Share has been decreasing by -0.19% on average over the past years.
The Revenue has been growing slightly by 5.04% in the past year.
The Revenue has been growing slightly by 6.05% on average over the past years.
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
Based on estimates for the next years, UNF will show a small growth in Earnings Per Share. The EPS will grow by 3.92% on average per year.
UNF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.03% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.18 indicates a rather expensive valuation of UNF.
Compared to the rest of the industry, the Price/Earnings ratio of UNF indicates a somewhat cheap valuation: UNF is cheaper than 66.27% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. UNF is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 20.72, UNF is valued on the expensive side.
Based on the Price/Forward Earnings ratio, UNF is valued a bit cheaper than 68.67% of the companies in the same industry.
UNF's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 20.72 |
4.2 Price Multiples
69.88% of the companies in the same industry are more expensive than UNF, based on the Enterprise Value to EBITDA ratio.
63.86% of the companies in the same industry are more expensive than UNF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.54 | ||
| EV/EBITDA | 9.2 |
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 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 2.54, UNF pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.78, UNF pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of UNF is nicely growing with an annual growth rate of 23.51%!
UNF has been paying a dividend for at least 10 years, so it has 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
15.96% of the earnings are spent on dividend by UNF. This is a low number and 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%
180.65
+0.7 (+0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.78%
Inst Owner Change-2.48%
Ins Owners0.74%
Ins Owner Change-1.13%
Market Cap3.35B
Analysts47.69
Price Target182.84 (1.21%)
Short Float %1.12%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)-6.15%
PT rev (3m)-10.93%
EPS NQ rev (1m)2.38%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)1.85%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 20.72 | ||
| P/S | 1.37 | ||
| P/FCF | 20.54 | ||
| P/OCF | 10.58 | ||
| P/B | 1.56 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)8.53
EY4.72%
EPS(NY)8.72
Fwd EY4.83%
FCF(TTM)8.8
FCFY4.87%
OCF(TTM)17.07
OCFY9.45%
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 | 5.9 |
F-Score9
WACC8.97%
ROIC/WACC0.69
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 Year78.11%
EBIT Next 3Y28.4%
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%