UniFirst Corp. (UNF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Expedia Group, Inc.

Life Time Group Holdings, Inc.

Cintas Corp.

Global Business Travel Group, Inc.

H&R Block, Inc.

Rollins, Inc.

UniFirst Corp.

Service Corp. International

Marriott Vacations Worldwide Corp.

Valvoline, Inc.

Planet Fitness, Inc.

Why is UniFirst Corp. ?

Company has a low Debt to Equity ratio (avg) at times

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 %

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

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

Real-Time Research Report

Verdict Report

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.

42.42%

0.50

37.81%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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

Institutional Holding

100.00%

ROCE (avg)

8.53%

ROE (avg)

6.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.00

EV to EBIT

24.16

EV to EBITDA

13.26

EV to Capital Employed

2.05

EV to Sales

1.72

PEG Ratio

Dividend Yield

0.62%

ROCE (Latest)

8.49%

ROE (Latest)

6.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.44 times

DIVIDEND PER SHARE(HY)

Highest at USD 8.61

NET SALES(Q)

Highest at USD 622.53 MM

RAW MATERIAL COST(Y)

Fallen by -2.56% (YoY

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 255.88 MM

OPERATING PROFIT(Q)

Lowest at USD 62.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.97 %

PRE-TAX PROFIT(Q)

Lowest at USD 27.34 MM

NET PROFIT(Q)

Lowest at USD 20.48 MM

EPS(Q)

Lowest at USD 1.13

Here's what is working for UniFirst Corp.

Net Sales

Highest at USD 622.53 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Inventory Turnover Ratio

Highest at 4.44 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 8.61 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -2.56% (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

Here's what is not working for UniFirst Corp.

Pre-Tax Profit

At USD 27.34 MM has Fallen at -40.7%

over average net sales of the previous four periods of USD 46.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 20.48 MM has Fallen at -41.28%

over average net sales of the previous four periods of USD 34.88 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 255.88 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 62.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 9.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 27.34 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 20.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)