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1. Company Snapshot

1.a. Company Description

UniFirst Corporation provides workplace uniforms and protective work wear clothing in the United States, Europe, and Canada.The company operates through U.S. and Canadian Rental and Cleaning, Manufacturing, Specialty Garments Rental and Cleaning, and First Aid segments.It designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, and aprons; and specialized protective wear, such as flame resistant and high visibility garments.


The company also rents and sells industrial wiping products, floor mats, facility service products, and dry and wet mops; restroom and cleaning supplies comprising air fresheners, paper products, gloves, masks, sanitizers, and hand soaps; and other textile products.In addition, it provides first aid cabinet services and other safety supplies; decontaminates and cleans work clothes, and other items that is exposed to radioactive materials; and services special cleanroom protective wear and facilities.Further, it offers a range of garment service options, including full-service rental programs in which garments are cleaned and serviced; lease programs in which garments are cleaned and maintained by individual employees; and purchase programs to buy garments and related items directly.


The company serves automobile service centers and dealers, delivery services, food and general merchandise retailers, food processors and service operations, light manufacturers, maintenance facilities, restaurants, service companies, soft and durable goods wholesalers, transportation companies, healthcare providers, government agencies, research and development laboratories, high technology companies, and utilities operating nuclear reactors, as well as others who require employee clothing for image, identification, protection, or utility purposes.UniFirst Corporation was founded in 1936 and is headquartered in Wilmington, Massachusetts.

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1.b. Last Insights on UNF

Breaking News: Unifirst Corporation recently saw Thrivent Financial for Lutherans decrease its stake by 24.1% during a recent quarter. The fund now owns 16245 shares after selling 5145 shares. There is no recent earnings release available. Analysts at Zacks have a hold rating on the stock. Other analysts at Deutsche Bank have a hold rating. Wells Fargo also rates it as hold .

1.c. Company Highlights

2. UniFirst's Q1 FY2026 Earnings: Steady Progress Amidst Planned Investments

UniFirst reported revenues of $621.3 million for the first quarter of fiscal year 2026, a 2.7% increase from the prior year period. However, operating income and adjusted EBITDA declined year-over-year due to planned investments in growth and higher healthcare claims and legal costs. The company's earnings per share (EPS) came in at $1.98, slightly below estimates of $2.05. The Uniform and Facility Service Solutions segment delivered solid organic growth of 2.4%, while the First Aid and Safety Solutions segment grew 15.3%, driven by investments in the First Aid van business.

Publication Date: Jan -08

📋 Highlights
  • Revenue Growth: Q1 revenue rose to $621.3 million, a 2.7% increase YoY.
  • Segment Performance: First Aid and Safety Solutions grew 15.3%, driven by van business investments, while Uniform and Facility Services grew 2.4% organically.
  • Financial Strength: Balance sheet remains robust with no long-term debt, and $32 million in stock repurchases during the quarter.
  • Full-Year Guidance: Reaffirmed $2.475B–$2.495B revenue and $6.58–$6.98 diluted EPS, including $7M in Key Initiative costs.

Segment Performance

The company's segment performance was a mixed bag, with the Uniform and Facility Service Solutions segment delivering steady organic growth, while the First Aid and Safety Solutions segment drove significant growth. The company is making investments in its sales and services organizations to drive growth and improve operating leverage, including adding to the sales team and expanding capacity and stability.

Guidance and Outlook

UniFirst reaffirmed its full-year fiscal 2026 guidance, with a consolidated revenue range of $2.475 billion to $2.495 billion and fully diluted earnings per share between $6.58 and $6.98. The company expects to see steady improvement in the next couple of years, with a goal of achieving mid-single-digit organic growth and high teens adjusted EBITDA margins in the long term. Analysts estimate next year's revenue growth at 4.2%, indicating a slight acceleration in growth.

Valuation and Financial Position

UniFirst's financial position remains robust, with a solid balance sheet and no long-term debt. The company's valuation metrics, including a P/E Ratio of 25.45 and EV/EBITDA of 11.05, suggest that the market is pricing in steady growth and profitability. The company's return on equity (ROE) stands at 6.45%, while its return on invested capital (ROIC) is 5.26%. The dividend yield is 0.72%, indicating a relatively stable return for shareholders.

Key Initiatives and Margin Improvement

The company is making progress on its growth model, with strong new account sales and improved customer retention. UniFirst expects an inflection point in '27 for margin improvement initiatives, including enabling global inventory sharing and implementing operational improvements. The full impact of these initiatives won't be immediate, but they expect to start seeing benefits in '27. The ERP implementation is on track, with core financial foundations being implemented this year and supply chain-centric enhancements coming online in '27.

3. NewsRoom

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Envestnet Asset Management Inc. Trims Stock Position in Unifirst Corporation $UNF

08:32

Source: defenseworld.net

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Brandes Investment Partners, LP's Strategic Moves: Progressive Corp Leads with 1.04% Portfolio Impact

Feb -11

Source: gurufocus.com

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Thrivent Financial for Lutherans Cuts Stock Holdings in Unifirst Corporation $UNF

Feb -10

Source: defenseworld.net

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Brokerages Set Unifirst Corporation (NYSE:UNF) Target Price at $181.00

Feb -08

Source: defenseworld.net

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Tweedy Browne's Strategic Moves: Significant Increase in CNH Industrial NV

Feb -03

Source: gurufocus.com

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What a $20 Million Bet on a Stock Down 3% Signals for Investors

Feb -03

Source: fool.com

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Redaptive Partners With UniFirst to Modernize Energy Infrastructure Across Facilities

Jan -14

Source: prnewswire.com

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Unifirst Corporation (NYSE:UNF) Receives $181.00 Consensus Price Target from Analysts

Jan -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.18%)

6. Segments

United States and Canadian Rental and Cleaning

Expected Growth: 3.5%

The 3.5% growth in United States and Canadian Rental and Cleaning from UniFirst Corporation is driven by increasing demand for workplace safety and hygiene, rising need for uniforms and protective gear in industries such as healthcare and manufacturing, and growing adoption of rental and laundry services among businesses seeking cost savings and efficiency.

Manufacturing

Expected Growth: 3.8%

UniFirst Corporation's 3.8% growth in manufacturing is driven by increasing demand for uniforms and facility services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings initiatives, and investments in technology have contributed to improved productivity and profitability.

Net of the Intercompany MFG Elimination

Expected Growth: 0.0%

UniFirst Corporation's stagnant growth of 0.0% is attributed to the elimination of intercompany manufacturing transactions, indicating a neutral impact on revenue. This suggests that the company's internal sales and purchases are offsetting, resulting in no net growth. The lack of growth may also be influenced by industry saturation, intense competition, and stable market conditions.

Specialty Garments

Expected Growth: 4.2%

UniFirst's Specialty Garments segment growth of 4.2% is driven by increasing demand for protective clothing and uniforms in industries such as healthcare, manufacturing, and food processing. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to the growth. Furthermore, the segment has benefited from the trend towards outsourcing of uniform services, resulting in higher sales and revenue.

First Aid

Expected Growth: 3.2%

UniFirst's First Aid segment growth of 3.2% is driven by increasing demand for workplace safety and compliance, expansion into new markets, and a growing need for automated external defibrillators (AEDs) and other first aid products. Additionally, the company's strategic acquisitions and investments in digital platforms have enhanced its product offerings and customer experience, contributing to the segment's growth.

Corporate Functions

Expected Growth: 2.8%

UniFirst Corporation's Corporate Functions segment growth of 2.8% is driven by increasing demand for business process outsourcing, cost savings initiatives, and strategic investments in digital transformation. Additionally, the company's focus on operational efficiency, customer service, and supply chain optimization also contribute to this growth.

7. Detailed Products

Uniform Rental Services

UniFirst provides a wide range of uniform rental services, including garment selection, cleaning, and maintenance, to help businesses maintain a professional image.

Facility Services

UniFirst offers facility services, including restroom and hygiene products, floor mats, and cleaning supplies, to help maintain a clean and safe work environment.

First Aid and Safety Products

UniFirst provides a range of first aid and safety products, including first aid kits, safety glasses, and gloves, to help prevent and respond to workplace accidents.

Cleanroom and Controlled Environment Products

UniFirst offers cleanroom and controlled environment products, including garments, gloves, and cleaning supplies, to help maintain a contamination-free environment.

Promotional Products

UniFirst provides promotional products, including customized apparel, bags, and accessories, to help businesses promote their brand and increase visibility.

8. UniFirst Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for UniFirst Corporation is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is low for UniFirst Corporation as the company has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for UniFirst Corporation as the company relies on a few large suppliers for its raw materials, but has some flexibility to switch suppliers if needed.

Threat Of New Entrants

The threat of new entrants is low for UniFirst Corporation as the company has a strong brand presence and significant barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry is high for UniFirst Corporation as the company operates in a highly competitive industry with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.13%
Debt Cost 3.95%
Equity Weight 96.87%
Equity Cost 8.07%
WACC 7.94%
Leverage 3.23%

11. Quality Control: UniFirst Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
A O Smith

A-Score: 5.8/10

Value: 4.0

Growth: 5.7

Quality: 7.8

Yield: 4.0

Momentum: 4.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
ABM Industries

A-Score: 5.1/10

Value: 6.1

Growth: 5.7

Quality: 5.4

Yield: 4.0

Momentum: 1.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Aramark

A-Score: 4.9/10

Value: 4.6

Growth: 5.9

Quality: 3.4

Yield: 2.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
UniFirst

A-Score: 4.6/10

Value: 5.7

Growth: 5.2

Quality: 6.2

Yield: 1.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
ARC Document Solutions

A-Score: 4.3/10

Value: 4.8

Growth: 3.2

Quality: 4.1

Yield: 5.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
CBIZ

A-Score: 3.8/10

Value: 4.9

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

239.32$

Current Price

239.32$

Potential

-0.00%

Expected Cash-Flows