Analysis of Unifirst Corp's Dividend and Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy UNF?
Source: NASDAQ.COM
- Dividend Yield Expectation: Unifirst Corp's latest dividend suggests an annualized yield of 0.7%, which is cautious given the company's historical profitability fluctuations, indicating market hesitance regarding future earnings.
- Historical Volatility Analysis: The calculated annualized volatility for Unifirst Corp stands at 35% based on the last 251 trading days' closing prices, suggesting that this high volatility may influence investors' risk assessments in options trading.
- Options Trading Strategy: With the current stock price at $205.31, investors must carefully evaluate the potential rewards and risks of selling May options at a $220 strike price, particularly the risk of forfeiting upside beyond $220.
- Market Sentiment Factors: The unpredictability of dividends is closely tied to the company's earnings volatility, prompting investors to integrate fundamental analysis with historical data to better assess future dividend payment capabilities.
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Analyst Views on UNF
Wall Street analysts forecast UNF stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UNF is 177.25 USD with a low forecast of 145.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
0 Buy
3 Hold
2 Sell
Moderate Sell
Current: 202.540
Low
145.00
Averages
177.25
High
206.00
Current: 202.540
Low
145.00
Averages
177.25
High
206.00
About UNF
UniFirst Corporation is engaged in supplying and servicing uniform and workwear programs and facility service products. Its segments include United States (U.S.) and Canadian Rental and Cleaning, Manufacturing (MFG), Specialty Garments Rental and Cleaning (Specialty Garments), First Aid and Corporate. The U.S. and Canadian Rental and Cleaning segment purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the United States and Canada. The MFG segment designs and manufactures uniforms and non-garment items primarily for the purpose of providing these goods to the U.S. and Canadian Rental and Cleaning reporting segment. Specialty Garments 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. First Aid segment sells first aid cabinet products and services and other safety supplies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Unifirst Corp's Dividend and Volatility
- Dividend Yield Expectation: Unifirst Corp's latest dividend suggests an annualized yield of 0.7%, which is cautious given the company's historical profitability fluctuations, indicating market hesitance regarding future earnings.
- Historical Volatility Analysis: The calculated annualized volatility for Unifirst Corp stands at 35% based on the last 251 trading days' closing prices, suggesting that this high volatility may influence investors' risk assessments in options trading.
- Options Trading Strategy: With the current stock price at $205.31, investors must carefully evaluate the potential rewards and risks of selling May options at a $220 strike price, particularly the risk of forfeiting upside beyond $220.
- Market Sentiment Factors: The unpredictability of dividends is closely tied to the company's earnings volatility, prompting investors to integrate fundamental analysis with historical data to better assess future dividend payment capabilities.
See More
Tweedy, Browne Acquires New Stake in UniFirst
- New Investment Disclosure: Tweedy, Browne disclosed a new position in UniFirst by acquiring 102,059 shares during Q4, amounting to approximately $19.69 million, reflecting confidence in the company and enhancing its position in a diversified portfolio.
- Ownership Proportion Analysis: This acquisition increases UniFirst's stake to 1.59% of Tweedy, Browne's reportable U.S. equity assets totaling $1.24 billion, highlighting its significance within the investment portfolio.
- Financial Performance Overview: UniFirst's latest quarter showed a 2.7% year-over-year revenue increase to $621.3 million, although operating margins compressed from 9.2% to 7.3%; however, management reaffirmed full-year revenue guidance of up to $2.50 billion, indicating confidence in future growth.
- Market Competitiveness: As a leading provider of workplace uniforms and facility services, UniFirst leverages a vertically integrated business model and stable cash flows to maintain a competitive edge in the U.S., Canada, and European markets, particularly in rental and cleaning services.
See More
UniFirst Declares $0.365 Dividend, Kaiser Aluminum Announces $0.77 Dividend
- UniFirst Dividend Announcement: UniFirst's Board of Directors declared a quarterly cash dividend of $0.365 per share, payable on March 27, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Kaiser Aluminum Dividend Declaration: Kaiser Aluminum announced a cash dividend of $0.77 per share, payable on February 13, 2026, demonstrating the company's strong performance in maintaining stable cash flow and shareholder returns.
- Agree Realty Dividend Increase: Agree Realty declared a monthly cash dividend of $0.262, with an annualized amount rising to $3.144, a 3.6% increase from Q1 2025, showcasing the company's focus on shareholder value and confidence in profit growth.
- Labcorp Dividend Payment: Labcorp Holdings announced a cash dividend of $0.72 per share, payable on March 12, 2026, indicating its robust financial performance in the innovative laboratory services sector.
See More
UniFirst (UNF) Declares $0.365 Dividend Per Share, Consistent with Previous
- Dividend Declaration: UniFirst has declared a quarterly dividend of $0.365 per Class A share and $0.292 per Class B share, maintaining consistency with previous distributions, which reflects the company's ongoing commitment to stable cash flow and shareholder returns.
- Payment Schedule: The dividends are payable on March 27, with a record date of March 6 and an ex-dividend date also set for March 6, ensuring shareholders receive their earnings promptly and bolstering investor confidence.
- Revenue Outlook Reaffirmed: UniFirst has reaffirmed its revenue outlook for fiscal 2026 at $2.475 billion to $2.495 billion, indicating a positive business outlook despite the ongoing review of the Cintas acquisition proposal.
- Earnings Report Performance: Although UniFirst's GAAP EPS of $1.89 missed expectations by $0.10, its revenue of $621.3 million exceeded forecasts by $6.07 million, demonstrating the company's resilience in revenue growth.
See More
UniFirst (UNF) Receives Underweight Rating with $183 Price Target
- Rating Analysis: Analysts have assigned UniFirst an average underweight rating, indicating a cautious market outlook that may affect investor confidence in the company's future performance.
- Price Target Setting: The mean price target of $183 reflects a conservative expectation for UniFirst's stock, which could exert downward pressure on its share price in the short term.
- Market Reaction: The low rating may prompt investors to reassess their portfolios, potentially leading to decreased liquidity for UniFirst shares in the market.
- Strategic Implications: This rating and price target may compel UniFirst to implement strategies aimed at improving its market performance to attract more investor interest.
See More
UniFirst Reports 3% Revenue Growth but 20% Decline in Net Income for Q1 FY2026
- Revenue Growth: UniFirst reported over $621 million in revenue for Q1 FY2026, reflecting a nearly 3% year-over-year increase driven by new customer acquisitions and improved retention, although this growth did not offset the decline in profitability.
- Profit Decline: Net income fell by 20% to $34.4 million ($1.89 per share), missing analyst expectations of $2.10 per share, indicating that the company's investments during the quarter negatively impacted its profitability.
- Full-Year Guidance Maintained: UniFirst reaffirmed its revenue outlook for FY2026, projecting between $2.48 billion and $2.5 billion, with GAAP earnings expected to range from $6.58 to $6.98 per share, demonstrating confidence in future performance despite a decline compared to 2025 figures.
- Market Reaction: Despite revenue exceeding analyst expectations, the stock price fell by 3% following the earnings release, suggesting that investor concerns over profitability outweighed optimism regarding revenue growth, potentially affecting future investment decisions.
See More
Analysis of Unifirst Corp's Dividend and Volatility
- Dividend Yield Expectation: Unifirst Corp's latest dividend suggests an annualized yield of 0.7%, which is cautious given the company's historical profitability fluctuations, indicating market hesitance regarding future earnings.
- Historical Volatility Analysis: The calculated annualized volatility for Unifirst Corp stands at 35% based on the last 251 trading days' closing prices, suggesting that this high volatility may influence investors' risk assessments in options trading.
- Options Trading Strategy: With the current stock price at $205.31, investors must carefully evaluate the potential rewards and risks of selling May options at a $220 strike price, particularly the risk of forfeiting upside beyond $220.
- Market Sentiment Factors: The unpredictability of dividends is closely tied to the company's earnings volatility, prompting investors to integrate fundamental analysis with historical data to better assess future dividend payment capabilities.
See More
Tweedy, Browne Acquires New Stake in UniFirst
- New Investment Disclosure: Tweedy, Browne disclosed a new position in UniFirst by acquiring 102,059 shares during Q4, amounting to approximately $19.69 million, reflecting confidence in the company and enhancing its position in a diversified portfolio.
- Ownership Proportion Analysis: This acquisition increases UniFirst's stake to 1.59% of Tweedy, Browne's reportable U.S. equity assets totaling $1.24 billion, highlighting its significance within the investment portfolio.
- Financial Performance Overview: UniFirst's latest quarter showed a 2.7% year-over-year revenue increase to $621.3 million, although operating margins compressed from 9.2% to 7.3%; however, management reaffirmed full-year revenue guidance of up to $2.50 billion, indicating confidence in future growth.
- Market Competitiveness: As a leading provider of workplace uniforms and facility services, UniFirst leverages a vertically integrated business model and stable cash flows to maintain a competitive edge in the U.S., Canada, and European markets, particularly in rental and cleaning services.
See More
UniFirst Declares $0.365 Dividend, Kaiser Aluminum Announces $0.77 Dividend
- UniFirst Dividend Announcement: UniFirst's Board of Directors declared a quarterly cash dividend of $0.365 per share, payable on March 27, 2026, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Kaiser Aluminum Dividend Declaration: Kaiser Aluminum announced a cash dividend of $0.77 per share, payable on February 13, 2026, demonstrating the company's strong performance in maintaining stable cash flow and shareholder returns.
- Agree Realty Dividend Increase: Agree Realty declared a monthly cash dividend of $0.262, with an annualized amount rising to $3.144, a 3.6% increase from Q1 2025, showcasing the company's focus on shareholder value and confidence in profit growth.
- Labcorp Dividend Payment: Labcorp Holdings announced a cash dividend of $0.72 per share, payable on March 12, 2026, indicating its robust financial performance in the innovative laboratory services sector.
See More
UniFirst (UNF) Declares $0.365 Dividend Per Share, Consistent with Previous
- Dividend Declaration: UniFirst has declared a quarterly dividend of $0.365 per Class A share and $0.292 per Class B share, maintaining consistency with previous distributions, which reflects the company's ongoing commitment to stable cash flow and shareholder returns.
- Payment Schedule: The dividends are payable on March 27, with a record date of March 6 and an ex-dividend date also set for March 6, ensuring shareholders receive their earnings promptly and bolstering investor confidence.
- Revenue Outlook Reaffirmed: UniFirst has reaffirmed its revenue outlook for fiscal 2026 at $2.475 billion to $2.495 billion, indicating a positive business outlook despite the ongoing review of the Cintas acquisition proposal.
- Earnings Report Performance: Although UniFirst's GAAP EPS of $1.89 missed expectations by $0.10, its revenue of $621.3 million exceeded forecasts by $6.07 million, demonstrating the company's resilience in revenue growth.
See More
UniFirst (UNF) Receives Underweight Rating with $183 Price Target
- Rating Analysis: Analysts have assigned UniFirst an average underweight rating, indicating a cautious market outlook that may affect investor confidence in the company's future performance.
- Price Target Setting: The mean price target of $183 reflects a conservative expectation for UniFirst's stock, which could exert downward pressure on its share price in the short term.
- Market Reaction: The low rating may prompt investors to reassess their portfolios, potentially leading to decreased liquidity for UniFirst shares in the market.
- Strategic Implications: This rating and price target may compel UniFirst to implement strategies aimed at improving its market performance to attract more investor interest.
See More
UniFirst Reports 3% Revenue Growth but 20% Decline in Net Income for Q1 FY2026
- Revenue Growth: UniFirst reported over $621 million in revenue for Q1 FY2026, reflecting a nearly 3% year-over-year increase driven by new customer acquisitions and improved retention, although this growth did not offset the decline in profitability.
- Profit Decline: Net income fell by 20% to $34.4 million ($1.89 per share), missing analyst expectations of $2.10 per share, indicating that the company's investments during the quarter negatively impacted its profitability.
- Full-Year Guidance Maintained: UniFirst reaffirmed its revenue outlook for FY2026, projecting between $2.48 billion and $2.5 billion, with GAAP earnings expected to range from $6.58 to $6.98 per share, demonstrating confidence in future performance despite a decline compared to 2025 figures.
- Market Reaction: Despite revenue exceeding analyst expectations, the stock price fell by 3% following the earnings release, suggesting that investor concerns over profitability outweighed optimism regarding revenue growth, potentially affecting future investment decisions.
See More
