UNF

Unifirst Corp

Industrial/Transportation


Presented:08/31/2016
Price:$128.39
Cap:$2.59B
Current Price:$190.62
Cap:$3.41B

Presented

Date08/31/2016
Price$128.39
Market Cap$2.59B
Ent Value$1.99B
P/E Ratio21.91x
Book Value$68.96
Div Yield0%
Shares O/S20.18M
Ave Daily Vol110,173
Short Int2.45%

Current

Price$190.62
Market Cap$3.41B
UniFirst Corp. is a provider of workplace uniforms and protective work wear clothing. It designs, manufactures, personalizes, rents, cleans, delivers, and sells a wide range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments. The company operates through following segments: U.S. and Canadian Rental & Cleaning; Manufacturing; Corporate; Specialty Garments Rental and Cleaning; and First Aid. The U.S. and Canadian Rental & Cleaning segment purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the United States and Canada. The Corporate segment consists of costs associated with distribution center, sales and marketing, information systems, engineering, materials management, manufacturing planning, finance, budgeting, human resources, other general and administrative costs and interest expense. The Manufacturing segment designs and manufactures uniforms and non-garment items solely for the purpose of providing these goods to the U.S. and Canadian Rental & Cleaning reporting segment. The Specialty Garments Rental and Cleaning segment purchases, rents, cleans, delivers and sells, specialty garments and non-garment items primarily for nuclear and cleanroom applications and provides cleanroom cleaning services at limited customer locations. The First Aid segment sells first aid cabinet services and other safety supplies as well as maintains wholesale distribution and pill packaging operations. UniFirst was founded by Aldo Croatti in 1936 and is headquartered in Wilmington, MA.

Publicly traded companies mentioned herein: Aramark (ARMK), Cintas Corp (CTAS), G&K Services Inc (GK), UniFirst Corp (Long)

Highlights

The presenter is long shares of UniFirst (UNF), citing both upside from normalizing macroeconomic headwinds as well as potential strategic activity in the industry. He sees 50% upside from improving revenue growth and a “clear path to double” if strategic activity comes into play.

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