There Is Nothing Uniform About UniFirst Corporation's Profits

By: Chuck Carnevale | Wed, Mar 28, 2012
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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 PE 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)

 


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.

 


 

Chuck Carnevale

Author: Chuck Carnevale

Chuck Carnevale
F.A.S.T. Graphs™

Chuck Carnevale

Charles (Chuck) C. Carnevale is the creator of F.A.S.T. Graphs™. Chuck is also co-founder of an investment management firm. He has been working in the securities industry since 1970: he has been a partner with a private NYSE member firm, the President of a NASD firm, Vice President and Regional Marketing Director for a major AMEX listed company, and an Associate Vice President and Investment Consulting Services Coordinator for a major NYSE member firm.

Prior to forming his own investment firm, he was a partner in a 30-year-old established registered investment advisory in Tampa, Florida. Chuck holds a Bachelor of Science in Economics and Finance from the University of Tampa. Chuck is a sought-after public speaker who is very passionate about spreading the critical message of prudence in money management. Chuck is a Veteran of the Vietnam War and was awarded both the Bronze Star and the Vietnam Honor Medal.

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 advisor as to the suitability of such investments for his specific situation.

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