Home Sectors Consumer Cyclical Present Technicals: Unifirst Corporation (NYSE: UNF)

Present Technicals: Unifirst Corporation (NYSE: UNF)

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Unifirst Corporation is in the consumer cyclical sector and is part of the manufacturing apparel and furniture industry. The company CEO is Steven S. Sintros. UniFirst Corp together with its subsidiaries is engaged in designing, manufacturing, personalizing, renting, cleaning, delivering and selling uniforms and protective clothing, including shirts, jackets, coveralls, lab coats and specialized protective wear.

Previous Intraday Trading Performance:

The UNF stock showed a previous change of 1.04% with an open at 154.12 and a close of 155.80. It reached an intraday high of 157.03 and a low of 153.72.

SeekingAlpha:  UniFirst Corporation (UNF) CEO Steven Sintros on Q2 2019 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $3.0b with 19.1m shares outstanding, of which the float is 17.1m shares. Trading volume reached 109,910 shares compared to its average volume of 142,055 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Unifirst Corporation shares returned 0.64% and in the past 30 trading days it returned 15.01%. Over three months, it changed 11.50%. In one year it has changed -4.44% and within that year its 52-week high was 193.05 and its 52-week low was 132.38. UNF stock is 17.69% above its 52 Week Low.

Our calculations show a 200 day moving average of 158.13 and a 50 day moving average of 146.25. Currently UNF stock is trading -1.47% below its 200 day moving average and may be a good opportunity to buy, but should check other indicators to confirm a buy signal.

SeekingAlpha:  UniFirst beat estimates in Q2 and raised FY2019 guidance

Earnings:

The last annual fiscal EPS for the company was reported at 8.19 that ended on 31st of August 2018, which according to the previous close, that is a PE of 19.02. Based on 4 analyst estimates, the consensus EPS for the next quarter is 1.92. The TTM EPS is 6.90, which comes to a TTM PE of 22.58. Historically, the PE high was 56.30 and the PE low was 15.70. If the stock reached its PE low, that would represent a price of 108.33, which is a decrease of -30.47%.

The dividend per share is currently 0.45, which is a dividend yield of 0.29%. Also, the payout ratio is 6.52%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 46.65, which means it may be overvalued by -233.99%

Indicators to Watch:

Based on the latest filings, there is 115.20% of institutional ownership. Short-interest is 278,748, which is 1.46% of shares outstanding. The short-interest ratio or days-to-cover ratio is 1.80. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.67

SeekingAlpha:  UniFirst beats by $0.15, beats on revenue

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 10.41%, return on assets is 8.46%, profit margin is 9.11%, price-to-sales is 1.69 and price-to-book is 1.86.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 4  :Past Performance Score
 6  :Financial Strength Score
 0  :Future Growth Score
 0  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.