Unifi Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:3em;'>UFI</div>
UFI -- USA Stock  

USD 25.59  0.24  0.95%

Unifi Inc New is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 27th of January 2021. Unifi Inc Average Assets are most likely to decrease significantly in the upcoming years. The last year's value of Average Assets was reported at 533.03 Million. The current Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated to increase to about 40.2 M, while Free Cash Flow is projected to decrease to roughly 45.4 M. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to concentrate on Unifi Inc New as a unique choice for millenniums. I will address a few possible reasons stockholders do not currently respect this stock.
Published over a month ago
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You think Unifi Inc (NYSE:UFI) debt is an issue for stockholders?
Unifi Inc New has 105.59 M in debt with debt to equity (D/E) ratio of 0.33, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Unifi Inc has an asset utilization ratio of 56.16 percent. This implies that the company is making $0.56 for each dollar of assets. An increasing asset utilization means that Unifi Inc New is more efficient with each dollar of assets it utilizes for everyday operations.
Unifi financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Unifi, including all of Unifi's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Unifi assets, the company is considered highly leveraged. Understanding the composition and structure of overall Unifi debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Unifi Total Debt

Unifi Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Unifi Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Unifi balance sheet include debt obligations and money owed to different Unifi vendors, workers, and loan providers. Below is the chart of Unifi main long-term debt accounts currently reported on its balance sheet.
You can use Unifi Inc financial leverage analysis tool to get a better grip on understanding its financial position

How important is Unifi's Liquidity

Unifi financial leverage refers to using borrowed capital as a funding source to finance Unifi Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Unifi 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. Please check the breakdown between Unifi's total debt and its cash.

Exercise or conversion by Lucas Rocha of 943 shares of Unifi Inc subject to Rule 16b-3

Legal trades by Unifi insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Unifi insider trading alert for exercise of restricted stock units by Lucas Rocha, President UdB, on 29th of January 2021. This event was filed by Unifi Inc with SEC on 2021-01-29. Statement of changes in beneficial ownership - SEC Form 4. Lucas Rocha currently serves as president - unifi do brasil, ltda., vice president - unifi latin america of Unifi Inc New [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for Unifi

The current rise in Unifi Inc New short term price appreciation created some momentum for stockholders as it was traded today as low as 18.85 and as high as 19.48 per share. The company directors and management have successfully maneuvered the company at convenient times to take advantage of all market conditions in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.2. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Unifi Inc New partners.

Asset Breakdown

369.2 M
Assets Non Current
242.7 M
Current Assets
Total Assets529.51 Million
Current Assets242.69 Million
Assets Non Current369.19 Million
Goodwill13.89 Million
Tax Assets7.24 Million

Unifi showing occurrence of lower volatility

Current standard deviation is at 3.92. Unifi Inc New currently demonstrates below-verage downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.69. However, we do advice investors to further question Unifi Inc New expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

While other companies under the textile manufacturing industry are still a bit expensive, Unifi Inc may offer a potential longer-term growth to stockholders. The bottom line, as of the 26th of January 2021, we believe Unifi Inc is currently overvalued. It moves totally opposite to the market and projects below average odds of financial distress in the next two years. Our final 30 days buy-hold-sell advice on the company is Strong Hold.

About Contributor

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 Achuva Shats do not own shares of Unifi Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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