Why is UniFirst Corp. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
The company has declared Positive results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 298.74 MM
- ROCE(HY) Highest at 7.15%
- DEBT-EQUITY RATIO (HY) Lowest at -6.31 %
3
With ROE of 7.01%, it has a attractive valuation with a 1.57 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -8.34%, its profits have risen by 31% ; the PEG ratio of the company is 0.7
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.34% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to UniFirst Corp. should be less than 10%
- Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is UniFirst Corp. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
UniFirst Corp.
29.17%
0.50
37.81%
S&P 500
14.9%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
6.52%
EBIT Growth (5y)
0.66%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.09
Sales to Capital Employed (avg)
1.12
Tax Ratio
24.45%
Dividend Payout Ratio
17.54%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
8.53%
ROE (avg)
6.45%
Valuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
Price to Book Value
2.20
EV to EBIT
26.66
EV to EBITDA
14.64
EV to Capital Employed
2.26
EV to Sales
1.90
PEG Ratio
NA
Dividend Yield
0.56%
ROCE (Latest)
8.49%
ROE (Latest)
6.45%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Movement
6What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 8.52
DIVIDEND PAYOUT RATIO(Y)
Highest at 19.32%
RAW MATERIAL COST(Y)
Fallen by 0.56% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.41 times
NET SALES(Q)
Highest at USD 621.35 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for UniFirst Corp.
Dividend per share
Highest at USD 8.52 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 621.35 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Inventory Turnover Ratio
Highest at 4.41 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend Payout Ratio
Highest at 19.32%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 0.56% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales






