Unifirst Corporation Common Stock (UNF)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach UniFirst as a Graham-style asset-and-earnings question. It rents and sells uniforms and safety supplies, a business that can be repetitive and necessary for customers. The balance sheet is a genuine strength: debt to equity is only 0.04 and the Altman Z-score of 6.09 suggests low financial risk. But the operating numbers are not those of a high-quality compounder. Return on equity is just 5.30% and return on capital employed 3.35%. In fiscal Q3 2026, the quarter ended 2026-05-30, revenue was $634.4 million, net income was $19.9 million, and diluted EPS was $1.09. That compares poorly with fiscal Q3 2025, the quarter ended 2025-05-31, when revenue was $610.8 million, net income was $39.7 million, and diluted EPS was $2.13. Sales rose modestly, but profit nearly halved. The Lynch category is SLOW GROWER, based on profit growth of 1.8% a year over five years and revenue growth of 6.2%; that is not a dynamic growth profile. Free cash flow is $88.3 million, a yield of only 1.9% against the $4.7 billion market cap. At the 2026-10-13 close of $258.08, the FairStock P/E is 40.77, price-to-book is 2.12, EV/EBITDA is 16.16, and the Graham Number is $131.57, leaving a margin of safety of -96.15%. The Piotroski F-score is 6/9, fair but not compelling. I see a financially safe but low-return business trading at a demanding price. Growth and returns need to improve before the valuation looks rational.

In plain English: UniFirst supplies uniforms, protective workwear, and safety supplies to businesses in the United States, Canada, and Europe. The company has little debt, but its recent profits have fallen sharply and it does not earn much profit relative to its size. At the recent close, the stock looks expensive compared with its earnings, cash flow, and net assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-30) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-29) · fiscal Q3 2025 10-Q (period ended 2025-05-31) · FY2025 10-K (period ended 2025-08-30) · FY2024 10-K (period ended 2024-08-31) · FY2023 10-K (period ended 2023-08-26)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer