UNIFIRST CORP/MA (UNF)
US9047081040 - Common Stock
Taking everything into account, UNF scores 6 out of 10 in our fundamental rating. UNF was compared to 84 industry peers in the Commercial Services & Supplies industry. UNF has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, UNF is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year UNF was profitable.
UNF had a positive operating cash flow in the past year.
In the past 5 years UNF has always been profitable.
UNF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.38%, UNF is doing good in the industry, outperforming 74.70% of the companies in the same industry.
UNF has a Return On Equity of 5.60%. This is in the better half of the industry: UNF outperforms 60.24% of its industry peers.
UNF has a Return On Invested Capital of 5.50%. This is comparable to the rest of the industry: UNF outperforms 55.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UNF is below the industry average of 10.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 5.6% | ||
| ROIC | 5.5% |
ROA(3y)4.88%
ROA(5y)5.91%
ROE(3y)6.21%
ROE(5y)7.47%
ROIC(3y)6.1%
ROIC(5y)7.04%
1.3 Margins
UNF's Profit Margin of 4.92% is fine compared to the rest of the industry. UNF outperforms 74.70% of its industry peers.
In the last couple of years the Profit Margin of UNF has declined.
The Operating Margin of UNF (7.34%) is better than 60.24% of its industry peers.
UNF's Operating Margin has declined in the last couple of years.
The Gross Margin of UNF (34.10%) is better than 60.24% of its industry peers.
UNF's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.34% | ||
| PM (TTM) | 4.92% | ||
| GM | 34.1% |
OM growth 3Y-7.86%
OM growth 5Y-6.98%
PM growth 3Y-14.88%
PM growth 5Y-13.63%
GM growth 3Y-1.69%
GM growth 5Y-2.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UNF is destroying value.
UNF has about the same amout of shares outstanding than it did 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 5.51 indicates that UNF is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.51, UNF belongs to the best 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 | 5.51 |
ROIC/WACC0.6
WACC9.22%
2.3 Liquidity
A Current Ratio of 3.29 indicates that UNF has no problem at all paying its short term obligations.
The Current ratio of UNF (3.29) is better than 86.75% of its industry peers.
A Quick Ratio of 2.69 indicates that UNF has no problem at all paying its short term obligations.
The Quick ratio of UNF (2.69) is better than 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.29 | ||
| Quick Ratio | 2.69 |
3. Growth
3.1 Past
UNF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.09%.
UNF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.15% yearly.
UNF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.43%.
The Revenue has been growing slightly by 5.65% on average over the past years.
EPS 1Y (TTM)-2.09%
EPS 3Y-0.52%
EPS 5Y1.15%
EPS growth Q2Q-12.23%
Revenue 1Y (TTM)10.43%
Revenue growth 3Y7.37%
Revenue growth 5Y5.65%
Revenue growth Q2Q8.85%
3.2 Future
UNF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.09% yearly.
Based on estimates for the next years, UNF will show a small growth in Revenue. The Revenue will grow by 5.63% on average per year.
EPS Next Y7.4%
EPS Next 2Y7.83%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue Next Year8.57%
Revenue Next 2Y6%
Revenue Next 3Y5.63%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.77, the valuation of UNF can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of UNF indicates a somewhat cheap valuation: UNF is cheaper than 67.47% of the companies listed in the same industry.
UNF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.58 indicates a rather expensive valuation of UNF.
Based on the Price/Forward Earnings ratio, UNF is valued a bit cheaper than 66.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UNF to the average of the S&P500 Index (20.88), we can say UNF is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 19.58 |
4.2 Price Multiples
UNF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UNF is cheaper than 68.67% of the companies in the same industry.
UNF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UNF is cheaper than 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.74 | ||
| EV/EBITDA | 9.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UNF does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.08
PEG (5Y)19.77
EPS Next 2Y7.83%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
UNF has a yearly dividend return of 0.84%, which is pretty low.
Compared to an average industry Dividend Yield of 2.39, UNF pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.84, UNF pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
On average, the dividend of UNF grows each year by 40.88%, which is quite nice.
UNF has paid a dividend for at least 10 years, which is 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)40.88%
Div Incr Years6
Div Non Decr Years19
5.3 Sustainability
UNF pays out 19.76% 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.
DP19.76%
EPS Next 2Y7.83%
EPS Next 3Y9.09%
UNIFIRST CORP/MA
NYSE:UNF (5/3/2024, 7:23:49 PM)
After market: 159.6 0 (0%)159.6
+2.52 (+1.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.77 | ||
| Fwd PE | 19.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.08
PEG (5Y)19.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 5.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.34% | ||
| PM (TTM) | 4.92% | ||
| GM | 34.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.29 | ||
| Quick Ratio | 2.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.09%
EPS 3Y-0.52%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.43%
Revenue growth 3Y7.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y