📊 UNF Key Takeaways
Is Unifirst Corp. (UNF) a Good Investment?
UniFirst has a fortress balance sheet with zero debt and strong liquidity, but operational fundamentals are deeply concerning with minimal profitability (4% net margin, 5% operating margin) and alarmingly low returns on capital (3.4% ROE, 2.7% ROA). The 24,796% revenue surge coupled with flat net income growth suggests a value-destructive acquisition or margin compression that has not yet resolved.
Unifirst Corp. Key Strengths (UNF)
- Zero long-term debt with strong balance sheet (2.2B equity, 2.8B total assets)
- Excellent liquidity position (3.11x current ratio, 2.61x quick ratio) with 163M cash
- Positive operating and free cash flow (139.3M operating, 32.4M free)
- Outstanding interest coverage (26.9x) indicates financial safety despite low profitability
UNF Stock Risks: Unifirst Corp. Investment Risks
- Critically low profitability metrics (4% net margin, 5% operating margin indicate structural margin weakness or competitive pressure)
- Abysmal returns on capital (3.4% ROE, 2.7% ROA are well below cost of capital in any scenario)
- Massive revenue growth (24,796% YoY) with zero net income growth signals value-destructive acquisition or severe integration issues
- Extremely low free cash flow conversion (1.7% FCF margin) with high capex (107M) leaves limited cash for returns to shareholders
- No insider buying activity in last 90 days suggests low management confidence
Key Metrics to Watch
- Net margin trend and whether profitability improves post-acquisition integration
- ROE and ROA progression—must improve meaningfully from current lows (target 8%+ ROE, 5%+ ROA)
- Free cash flow margin expansion—1.7% is unsustainably low for a mature services company
- Return on invested capital (ROIC)—currently being destroyed by the acquisition
Unifirst Corp. (UNF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.7% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.11x current ratio provides a solid financial cushion.
UNF Profit Margin, ROE & Profitability Analysis
UNF vs Services Sector: How Unifirst Corp. Compares
How Unifirst Corp. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Unifirst Corp. Stock Overvalued? UNF Valuation Analysis 2026
Based on fundamental analysis, Unifirst Corp. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Unifirst Corp. Balance Sheet: UNF Debt, Cash & Liquidity
UNF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Unifirst Corp.'s revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.53 reflects profitable operations.
UNF Revenue Growth, EPS Growth & YoY Performance
UNF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $610.8M | $19.9M | $1.09 |
| Q2 2026 | $602.2M | $20.5M | $1.13 |
| Q3 2025 | $603.3M | $20.5M | $2.03 |
| Q2 2025 | $590.7M | $20.5M | $1.09 |
| Q1 2025 | $593.5M | $34.4M | $1.89 |
| Q3 2024 | $576.7M | $17.8M | $1.29 |
| Q2 2024 | $542.7M | $17.8M | $0.95 |
| Q1 2024 | $541.8M | $34.0M | $1.81 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Unifirst Corp. Dividends, Buybacks & Capital Allocation
UNF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Unifirst Corp. (CIK: 0000717954)
📋 Recent SEC Filings
❓ Frequently Asked Questions about UNF
What is the AI rating for UNF?
Unifirst Corp. (UNF) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are UNF's key strengths?
Claude: Zero long-term debt with strong balance sheet (2.2B equity, 2.8B total assets). Excellent liquidity position (3.11x current ratio, 2.61x quick ratio) with 163M cash.
What are the risks of investing in UNF?
Claude: Critically low profitability metrics (4% net margin, 5% operating margin indicate structural margin weakness or competitive pressure). Abysmal returns on capital (3.4% ROE, 2.7% ROA are well below cost of capital in any scenario).
What is UNF's revenue and growth?
Unifirst Corp. reported revenue of $1.9B.
Does UNF pay dividends?
Unifirst Corp. pays dividends, with $18.8M distributed to shareholders in the trailing twelve months.
Where can I find UNF SEC filings?
Official SEC filings for Unifirst Corp. (CIK: 0000717954) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is UNF's EPS?
Unifirst Corp. has a diluted EPS of $4.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is UNF's fundamental grade?
Based on our AI fundamental analysis in August 2026, Unifirst Corp. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is UNF stock overvalued or undervalued?
Valuation metrics for UNF: ROE of 3.4% (sector avg: 16%), net margin of 4.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is UNF's AI grade for 2026?
Our dual AI analysis gives Unifirst Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is UNF's free cash flow?
Unifirst Corp.'s operating cash flow is $139.4M, with capital expenditures of $107.0M. FCF margin is 1.7%.
How does UNF compare to other Services stocks?
Vs Services sector averages: Net margin 4.0% (avg: 10%), ROE 3.4% (avg: 16%), current ratio 3.11 (avg: 1.5).