UNF
Unifirst Corp
Industrial/Transportation
10/10/2017
Presented
| Date | 10/05/2017 |
| Price | $155.05 |
| Market Cap | $3.14B |
| Ent Value | $2.52B |
| P/E Ratio | 28.64x |
| Book Value | $75.00 |
| Div Yield | 0.1% |
| Shares O/S | 20.28M |
| Ave Daily Vol | 43,327 |
| Short Int | 1.45% |
Current
| Price | $190.62 |
| Market Cap | $3.41B |
| UniFirst Corp. engages in the design, manufacture, personalization, rental, cleaning, delivery, and sale of a 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. It operates through following segments: U.S. Rental & Cleaning; Canadian Rental and Cleaning; Manufacturing; Specialty Garments Rental and Cleaning; First Aid; and Corporate. 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 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. 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 company was founded by Aldo Croatti in 1936 and is headquartered in Wilmington, MA. |
Publicly traded companies mentioned herein: Aramark (ARMK), Cintas Corp (CTAS), UniFirst Corp (UNF)
Highlights
The presenter is long shares of UniFirst (UNF), seeing an improved market structure in the uniform rental industry as well as some company-specific tailwinds that will drive margins and earnings growth. With continued top-line growth inflection thanks to the oil and gas recovery and margin normalization, he thinks UNF is set to exceed Street EBITDA estimates by 20%. As earnings come in higher than expected and multiples expand, UNF shares could rise by 50% or better over the next year, with further upside potential from accretive acquisitions, share buyback, and tax reform.
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