Investors have been paying attention to UniFirst Co.’s (NYSE:UNF), which has had an impressive year in both revenue and satisfaction with customers. However, Texas Permanent School Fund’s recent 13F filing with the SEC shows that they have decreased their stake in shares of UniFirst by 6.6% in the fourth quarter.
UniFirst Corp. continues to be a leader on the North American market in terms of providing protective workwear clothing, workplace uniforms as well as other products for various industries. It operates in different segments, including Rental and Cleaning, Manufacturing, Specialty Garments, First Aid, and corporate.
Its primary unit is the U.S. and Canadian Rental and Cleaning Segment, where it buys, rents and delivers uniforms and protective clothing as well as non-garment products. The sector has a wide range of industries that it serves, including healthcare, hospitality and food service.
Shares of NYSE:UNF opened at $163.33 on Friday with a market capitalization of $3.05 billion while its 50-day moving average lies at $175.79 per share indicating bullish momentum though we can’t ignore the bearish sentiment when compared to its 200-day moving average which stands at $186.62.
UniFirst had a great year in terms of revenue growth, with reports showing a rise of around 4%. This puts them among the industry’s top performers despite facing challenges such as inflationary pressures on raw materials prices.
The company’s success story can be linked to several factors with most notable being their constant efforts towards improving customer experience through technological innovation coupled with responsive customer care support service resulting in excellent user satisfaction rates.
In conclusion, UniFirst Co.’s current stock performance may not look very promising considering Texas Permanent School Fund’s reduced stake despite having compelling positive growth potential worthy of investor interest due to their excellent business model which focuses on key industry niches with promising financial rewards.
UniFirst Corp. – Textile Makers and Workplace Uniform Suppliers with Long-term Growth Potential
UniFirst Corp., a textile manufacturer specializing in protective clothing and workplace uniforms, is one of the largest companies that manufactures these products. It operates in several segments, including Rental and Cleaning, Manufacturing, Specialty Garments, First Aid, and Corporation. Institutional investors own 77.73% of the company’s stock, with State Board of Administration of Florida Retirement System leading the pack with holdings worth $549,000.
UniFirst released their earnings report for Q1, reporting a revenue of $542.70M, versus an analyst’s estimate of $531.68M. However, they missed the consensus estimate on EPS by $0.40 ($0.95 vs $1.35). Despite this setback, analysts predict UniFirst Co.’s EPS will be 7.15 for the current fiscal year.
Research firms have differing opinions on whether to invest in UniFirst or not: Robert W.Baird maintains an “outperform” rating while StockNews.com rates UniFirst as a “buy”. However, TheStreet downgraded the stock from a “b-” rating to a “c+”, citing decreased earnings per share as their main reason.
UniFirst announced recently a dividend payout rate of 22.63 %, which is equivalent to a yield 0.76%. Dividends are expected to be distributed on June 29, while those who have registered by June 8, will get the payout.
UniFirst is a company that provides products essential to different businesses, such as the healthcare industry and construction sector. Its institutional investors’ shares show their belief in its long-term potential despite setbacks it experienced during this first reporting quarter.