UniFirst Corporation: Growth and Investment Amidst Margin Pressures

UniFirst Corporation (UNF) has experienced strong revenue growth post-pandemic, driven by acquisitions and organic growth initiatives related to pricing and customer expansion. However, its margins have been declining due to investments in key initiatives like CRM and ERP, as well as acquisition costs. The uniform and workwear industry is anticipated to grow significantly, driven by demand from various sectors and expansion in the healthcare, construction, and transportation industries. While UNF’s forward revenue growth outlook is strong, its net income and gross profit margins are lower than its peers. Its valuation reflects a 9% upside potential, which lack margin of safety, leading to a ‘Hold’ rating.

Scroll to Top