Is Unifirst (USA Stocks:UNF) finally getting endorsement from stockholders?

Unifirst's stock is currently valued at $166.04 per share, with moderate growth expectations. With a beta of 0.15, the stock doesn't show much volatility compared to the broader market. This means that if the market rises, Unifirst's gains might be smaller, but in a downturn, its losses could also be less severe. Currently, the stock has a slightly negative expected return of -0.21%. It's important to assess Unifirst's potential upside and examine the relationship between its rate of daily change and period momentum indicator. This analysis will help determine if Unifirst's past performance might be replicated in the near future.

Major Takeaways

Unifirst, a key player in the Commercial & Professional Services sector, is drawing attention with its diversified support services and a net income of 145.5M, suggesting a solid financial foundation. Despite a slightly negative Treynor Ratio of -1.15, which indicates some risk in relation to market movements, the company's consistent performance and shareholder backing could set the stage for a potential bullish breakout.
Published 2 days ago
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Reviewed by Rifka Kats

Unifirst Corporation, trading under the ticker UNF on the NYSE, is catching the eye of investors as it navigates the commercial services and supplies sector. With a market capitalization of $3.2 billion and a robust EBITDA of $326 million, the company is showing promising signs of growth. Analysts have set target prices ranging from $155.84 to $190.09, suggesting potential upside from its current trading levels. The company's return on equity stands at 7.08%, indicating efficient use of shareholder funds. As Unifirst approaches its fiscal year-end in August, its projected EPS of 8.26 for the next year could further bolster investor confidence. With a solid foundation and shareholder backing, Unifirst might just be on the brink of a bullish breakout. Unifirst's Book Value Per Share is expected to rise considerably in the coming years. The company's Free Cash Flow Yield is anticipated to grow to 0.05, while its Price to Sales Ratio is likely to drop to 0.88. With more conservative investors showing interest in the commercial services and supplies sector, Unifirst might be worth your attention. I'll delve deeper into this stock and the current sentiment among shareholders. Additionally, I'll focus on key indicators that Unifirst investors should keep an eye on in February.
The performance of Unifirst in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Unifirst's stock prices. When investing in Unifirst, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Unifirst Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Unifirst carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Unifirst earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Unifirst dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Unifirst one year expected dividend income is about USD0.86 per share.
The Unifirst's current Dividend Payout Ratio is estimated to increase to 0.15, while Dividends Paid is forecasted to increase to (25.5 M).
Last ReportedProjected for Next Year
Dividends Paid-26.8 M-25.5 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.14  0.15 
Dividend Paid And Capex Coverage Ratio 1.45  1.32 
Investing in dividend-paying stocks, such as Unifirst is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Unifirst must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Unifirst. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Unifirst's Liquidity

Unifirst financial leverage refers to using borrowed capital as a funding source to finance Unifirst ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Unifirst financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Unifirst's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Unifirst's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Unifirst's total debt and its cash.

What do experts say about Unifirst?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis Consensus

Breaking it down a bit more

Unifirst shows a total of 15.03 Million outstanding shares. The majority of Unifirst outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Unifirst to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Unifirst. Please pay attention to any change in the institutional holdings of Unifirst as this could imply that something significant has changed or is about to change at the company.
Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.
 2021 2023 2024 (projected)
Interest Expense2.9M3.3M5.2M
Depreciation And Amortization110.3M141.4M148.5M

Ownership Breakdown

Institutions
98.11%
Retail Investors1.14
Insiders0.75
Institutions98.11
Buy low, sell high is a timeless strategy that investors are eyeing with Unifirst Corporation (NYSE: UNF) as it gears up for potential growth. With a solid market capitalization of $3.18 billion and a low debt-to-equity ratio of just 0.03%, the company appears financially robust. Unifirst's quarterly earnings growth of 62.6% suggests strong operational performance, which could be a catalyst for a bullish breakout. Despite a modest five-year return of 0.36%, the company's earnings per share of $7.76 and institutional ownership of 98.11% indicate confidence from major investors. As Unifirst continues to deliver steady revenue growth, it may well be on the cusp of capturing more investor interest..

Will Unifirst pull back in February 2025?

Unifirst's recent Treynor Ratio drop to -1.15 has caught the attention of investors, hinting at possible challenges ahead. This negative ratio, which evaluates returns adjusted for risk, suggests that the stock might not be adequately rewarding its market risk. As February 2025 approaches, this could indicate a potential pullback, encouraging investors to reconsider their positions. While not a definitive prediction, the Treynor Ratio's decline is a cautionary signal, urging a closer examination of Unifirst's risk-return balance in the coming months. As of January 1st, Unifirst shows a Risk Adjusted Performance of -0.06, a coefficient of variation of 1,242, and a variance of 3.78. It's important to review these technical indicators alongside fundamental metrics to assess if Unifirst's current price of $171.09 per share accurately reflects its market value. With an information ratio of -0.09, it's advisable to reassess Unifirst's market performance to ensure its future sustainability.

Our Final Take On Unifirst

While some other companies within the specialty business services industry are still a little expensive, even after the recent corrections, Unifirst may offer a potential longer-term growth to stockholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor drop any shares of Unifirst at this time. The Unifirst risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Unifirst.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Unifirst. Please refer to our Terms of Use for any information regarding our disclosure principles.

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