UniFirst Corporation (UNF) AI Stock Analysis
UNF AI stock analysis summary
AI ResearchUniFirst Corporation is a provider of workplace uniforms, protective workwear, and facility services across the United States, Europe, and Canada. In FY2025, revenue reached $2.43B with net income of $148.3M, though quarterly earnings fell 48.8% year-over-year in the period ended May 31, 2026. The company maintains a net cash position of $83.8M with a current ratio of 3.11.
- Market cap
- $4.76B
- Revenue (TTM)
- $2.49B
- P/E
- 41.5x fwd 19.2x
- 1Y return
- 60.1% S&P 500 16.8%
- Avg. target
- $273.33 3.9% vs last close
Bull case
- UniFirst generated $141.4M in free cash flow in FY2025 and closed its May 31, 2026 quarter with $83.8M in net cash.
- The company has paid dividends for 42 consecutive years, supported by a 7.2% annualized 5-year dividend growth rate and a 27.0% payout ratio.
- The stock posted a 1-year gain of 60.1%, outperforming the S&P 500 benchmark return of 16.8%.
Bear case
- Quarterly earnings fell 48.8% year-over-year in the quarter ended May 31, 2026.
- The trailing P/E multiple of 41.5x sits significantly above the 24.8x median of its US-listed Industrials peers.
- Analysts estimate FY2026 EPS will decline 9.9% to $7.44.
What UniFirst does
UniFirst Corporation specializes in designing, manufacturing, personalizing, renting, cleaning, delivering, and selling workplace uniforms and protective clothing. Operating segments include U.S. and Canadian Rental and Cleaning, Manufacturing, Specialty Garments Rental and Cleaning, and First Aid. Beyond shirts, pants, jackets, coveralls, and high visibility garments, it supplies industrial wiping products, floor mats, and cleaning goods. UniFirst also delivers first aid cabinet services, safety supplies, decontamination services for materials exposed to radioactive elements, and cleanroom protective wear. Its customer base spans automobile service centers, food retailers, manufacturers, restaurants, healthcare providers, government agencies, and nuclear utilities.
Growth and profitability
UniFirst delivered a 5-year revenue CAGR of 6.2% from FY2020 to FY2025. Annual revenue expanded from $1.83B in FY2021 to $2.43B in FY2024 and stayed at $2.43B in FY2025, reflecting 0.2% growth. Gross margin compressed from 37.5% in FY2021 to 30.8% in FY2025, while operating margin fell from 10.7% to 7.6%. Over the same span, net income shifted from $151.1M in FY2021 to $148.3M in FY2025, with EPS moving from $7.94 to $8.25. Over the trailing twelve months, revenue reached $2.49B with an operating margin of 4.5% and net profit margin of 4.7%. In the latest quarter ended May 31, 2026, revenue increased 3.9% year-over-year, while quarterly earnings dropped 48.8%.
Balance sheet and cash flow
As of May 31, 2026, UniFirst held $168.9M in cash and short-term investments alongside $85.0M in total debt, leaving net cash of $83.8M. Shareholders' equity was $2.20B on total assets of $2.82B, yielding a debt-to-equity ratio of 0.04 and a current ratio of 3.11. In FY2025, the business produced $295.7M in operating cash flow and $141.4M in free cash flow. Cash deployment in FY2025 included $154.3M for capital expenditures, $70.9M for share buybacks, and $24.6M for dividends paid, contributing to a 4.3% reduction in share count over 5 years.
Valuation and performance
With a market cap of $4.76B, UniFirst trades at a trailing P/E of 41.5x and a forward P/E of 19.2x, compared to medians of 24.8x and 17.2x for its US-listed Industrials peers. Its EV/EBITDA of 16.5x and price-to-sales of 1.9x also stand above the peer medians of 13.9x and 1.5x. Over the past year, the stock gained 60.1% versus 16.8% for SPY. Over five years, it gained 28.4% compared to 83.0% for SPY. The shares closed at $263.00 on October 16, 2026, 2.5% above their 200-day average.
UNF dividend
UniFirst pays a forward annual dividend of $1.46 per share, providing a 0.56% dividend yield with a payout ratio of 27.0%. The company distributes dividends quarterly and has paid dividends for 42 consecutive years. Over the past five years, its annualized dividend growth rate was 7.2%. The last ex-dividend date was September 4, 2026.
What analysts expect
Four analysts cover UniFirst, with all 4 issuing Hold ratings. The mean price target is $273.33, implying 3.9% upside from the last close of $263.00. For the fiscal year ending August 31, 2026, consensus estimates project revenue of $2.51B and EPS of $7.44, down 9.9%. For the next fiscal year, analysts model revenue of $2.60B and EPS of $8.09. UniFirst beat EPS estimates in 3 of the last 4 quarters, with the next earnings release scheduled for October 21, 2026.
Key risks and what to watch
- Gross margin declined from 37.5% in FY2021 to 30.8% in FY2025.
- Operating margin of 4.5% over the trailing twelve months trails the peer median of 11.7%.
- Short interest stands at 10.7% of the float as of October 16, 2026.
- FY2025 revenue grew just 0.2%, slowing from 8.7% growth in FY2024.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this UNF AI stock analysis
This page is an AI-written research summary of UniFirst Corporation (UNF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: UNF income statement, UNF balance sheet, UNF key metrics, UNF analyst forecast, UNF chart. See the UNF stock overview for the latest quote and news.
UNF AI stock analysis FAQ
What was UniFirst's revenue in FY2025?
UniFirst generated $2.43B in revenue in FY2025, representing a 0.2% increase over FY2024.
Does UniFirst pay a dividend?
Yes, UniFirst pays a quarterly dividend totaling $1.46 annually, which equals a 0.56% yield with 42 consecutive years of payments.
How strong is UniFirst's balance sheet?
As of May 31, 2026, UniFirst held $168.9M in cash and short-term investments against $85.0M in total debt, giving it $83.8M in net cash and a current ratio of 3.11.
What is the consensus analyst price target for UNF?
The mean analyst price target is $273.33, which is 3.9% above its October 16, 2026 closing price of $263.00, based on 4 Hold ratings.