Unifirst Story

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UNF -- USA Stock  

USD 224.12  5.23  2.28%

Unifirst Corp is scheduled to announce its earnings today. The next earnings report is expected on the 7th of July 2021. Unifirst Corp Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.000176. The current year Calculated Tax Rate is expected to grow to 32.18, whereas Revenue Per Employee is forecasted to decline to about 115.9 K. While some baby boomers are getting worried about industrials space, it is reasonable to digest Unifirst Corp as an investment alternative. I will address a few possible reasons shareholders do not currently respect this stock.
Published over two weeks ago
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Should I hold on to my Unifirst (NYSE:UNF) position?
The company has 41.6 M in debt with debt to equity (D/E) ratio of 0.02, which may show that the entity is not taking advantage of profits from borrowing. Unifirst Corp has a current ratio of 4.57, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The company has Net Profit Margin of 7.25 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 15.41 %, which entails that for every 100 dollars of revenue, it generated 0.15 of operating income.
Unifirst Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Unifirst Corp, including all of Unifirst Corp'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 Unifirst Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Unifirst Corp 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 Unifirst Total Liabilities

Unifirst Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Unifirst Corp 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 Unifirst Corp balance sheet include debt obligations and money owed to different Unifirst Corp vendors, workers, and loan providers. Below is the chart of Unifirst short long-term liabilities accounts currently reported on its balance sheet.
You can use Unifirst Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Unifirst Corp's Liquidity

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

Breaking it down a bit more

The modest gains experienced by current holders of Unifirst Corp created some momentum for shareholders as it was traded today as low as 213.37 and as high as 226.48 per share. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.87. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Liabilities Breakdown

51.3 M
Tax Liabilities
179.2 M
Current Liabilities
160.9 M
Long-Term Liabilities
Total Liabilities365.22 Million
Current Liabilities179.24 Million
Long-Term Liabilities160.89 Million
Tax Liabilities51.29 Million

Some Unifirst technical indicators suggest bounce back

The downside variance is down to 2.96 as of today. Unifirst Corp has relatively low volatility with skewness of 0.18 and kurtosis of 2.62. However, we advise all investors to independently investigate Unifirst Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Unifirst Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Unifirst Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Unifirst Corp

Although some other firms under the specialty business services industry are still a bit expensive, Unifirst Corp may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Unifirst as the current risk-reward utility is not appealing enough. 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 Corp.

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 Unifirst Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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