There Is Nothing Uniform about UniFirst Corporation's Profits

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Mar 28, 2012
UniFirst Corporation (UNF) is one of the nation’s largest providers of uniforms and accessory products to businesses of all types. Today the stock is up strongly because the company beat analyst estimates as earnings jumped approximately 18% year over year. All of their business segments participated with improved margins and profits, leaving the company to raise their full-year earnings estimates from the current expectation of $4.06 to a range of $4.10 to $4.12 on stronger revenue.


The following short video reviews UniFirst Corporation’s essential fundamentals of the glance through the lens of F.A.S.T. Graphs™. This high-quality small-cap company with a debt to equity ratio of only 11% is also a strong generator of cash flows. With a forward P/E ratio just slightly over 15, the company appears attractively valued for investors seeking above-average capital appreciation. Although the company does pay a modest dividend, investing in UniFirst Corporation (UNF) is best suited to investors seeking capital appreciation.


UniFirst Corporation (UNF)



http://youtu.be/67NwEahy4tY





Summary and Conclusions



UniFirst Corporation (UNF) is a small-cap company with a lot of room to grow. It has a very healthy balance sheet, generates excellent cash flows and was able to remain profitable through one of the worst recessions we’ve had in decades. At its current sound valuation, we believe the company offers the opportunity for above-average future capital gains at a very reasonable level of risk. Therefore, investors seeking capital gains in this low interest rate environment might want to look deeper into this high-quality small-cap company.


Disclosure: No position at the time of writing.


Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment adviser as to the suitability of such investments for his specific situation.