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what it is
UniFirst rents, cleans, and delivers work uniforms and safety supplies to 300,000 customer locations.
how it gets paid
Last year Unf made $2.4B in revenue. Uniform & Facility Service Solns. was the main engine at $2.2B, or 91% of sales.
why it's growing
Revenue grew 0.2% last year. Revenue rose 3% from a year ago. EPS.
what just happened
On the Jan 7, 2026 Q1 fiscal 2026 release, UniFirst reported diluted EPS of $1.89 versus $2.31 in the prior-year quarter (revenue $621.3M, +2.7% YoY).
At a glance
A balance sheet — strong enough to weather a downturn
75/100 earnings predictability — reasonably predictable
25.2x trailing p/e — priced about right
0.7% dividend yield — cash in your pocket every quarter
7.5% return on capital — nothing to write home about
xvary composite: 69/100 — average
What they do
UniFirst rents, cleans, and delivers work uniforms and safety supplies to 300,000 customer locations.
UniFirst serves 300,000 customer locations with about 16,000 employees. That is a lot of stops, a lot of pickups, and a lot of billing to unwind. 91.2% of revenue comes from uniforms and facility service, while first aid is 4.7%. Your local buyer does not swap that setup for fun, because route density (more stops on one truck route) and service routines make leaving painful.
How they make money
$2.4B
annual revenue · their business grew +0.2% last year
Uniform & Facility Service Solns.
$2.2B
First Aid & Safety Solns.
$0.1B
Other
$0.1B
The products that matter
industrial laundry services
industrial laundry business
$2.4B · entire revenue base
it is the whole $2.4B business, and last year's 0.2% growth tells you the investment case is about steady execution more than expansion.
100% of revenue
Key numbers
$2.4B
annual revenue
That is the business you are buying. It is steady, not flashy.
7.3%
operating margin (q1 fy26)
Per the Q1 fiscal 2026 earnings materials, operating margin was 7.3% for that quarter (adjusted EBITDA margin 13.3%). Full-year margin can read higher than a single soft quarter.
0.7%
dividend yield
You are not buying this for cash income. The yield is 0.7%.
25.2x
trailing p/e
You are paying 25.2 times last year's profit for a company with a 0.7% yield.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- net profit margin 6.6% — keeps 7 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in UNF 3 years ago → it's now worth $10,350.
The index would have given you $13,880.
source: institutional data · total return
What just happened
margin pressure
Q1 fiscal 2026 (ended Nov 29, 2025): revenue $621.3M (+2.7% YoY), diluted EPS $1.89 vs. $2.31 in the prior-year quarter.
Source: UniFirst Form 8-K exhibit 99.1 (Jan 7, 2026). Operating margin for the quarter was 7.3%; adjusted EBITDA margin was 13.3%.
$621.3M
revenue
$1.89
diluted eps
7.3%
op margin (q)
how to read it
Revenue grew modestly YoY, but diluted EPS fell vs. the same quarter last year—costs and mix mattered more than top-line miss drama.
-
unifirst shares are up 34% from our november report, largely because of takeover speculation.cintas and unifirst announced a definitive merger agreement on mar 11, 2026: ~$5.5 billion transaction consideration at ~$310 per unifirst share (cash and cintas stock), subject to approvals. earlier unsolicited proposals (including a ~$275/sh bid) are superseded by the signed deal terms in company and cintas releases.
-
there has been no indication that unifirst has engaged in such negotiations.moreover, unifirst’s board unanimously rejected a similar offer in january of 2025, due to it being ‘‘unsolicited, non-binding, and highly conditional’’. too, the croatti family (which holds significant voting power through class-b shares) has historically emphasized the company’s legacy and independence over a buyout. the operating environment is expected to be choppy in the remaining periods of fiscal 2026. (year ends august 29th.) revenues are estimated to slightly outpace the respective figures from a year ago, but heavy spending on digital transformation initiatives, higher than expected healthcare & legal costs, and rising selling and administrative expenses ought to dampen profitability.
-
as such, fiscal 2026 share earnings may retreat moderately against the 2025 tally.
-
we anticipate fiscal 2027 will be an inflection point.digital transformation initiatives are intended to enhance margin performance by streamlining sales and logistics. in our view, this could serve as a dual driver, as not only would share earnings benefit, but institutional investors may allow unf shares to trade at a higher valuation multiple to catch up to that of its more efficient peers.
-
the stock is trading within our threeto five-year target price range.
source: SEC Form 8-K ex. 99.1 (Jan 7, 2026); Cintas / UniFirst merger PR (Mar 11, 2026)
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What could go wrong
the #1 risk is the pending Cintas acquisition of UniFirst. This stock now has deal risk layered on top of a business that only grew 0.2% last year.
high
the $5.5B Cintas transaction may not close cleanly
The filing says the deal is conditioned on customary approvals and regulatory clearances. Until that is settled, the headline can move the stock more than the operating business does.
affects the whole ~$4B equity story
high
if the deal breaks, you fall back to a slow-growth standalone case
Without takeover support, investors are left judging a $2.4B revenue company that grew 0.2% last year and trades at 25.2x trailing earnings.
valuation risk sits against 0.2% growth
med
margin slippage would hit a story with very little growth to hide behind
A 14.5% operating margin is doing real work here. If costs rise or route efficiency weakens, the market has less reason to pay a premium multiple.
pressure on 14.5% operating margin and 6.6% net margin
25.2x earnings for 0.2% revenue growth is manageable while the deal stays alive. It gets harder to defend if the transaction drags, breaks, or exposes weaker standalone growth.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
deal approvals on the proposed $5.5B Cintas transaction
This is the event driving the stock right now. If approvals clear, the story is about deal terms. If they do not, the stock has to stand on fundamentals again.
metric
revenue growth above last year's 0.2%
You want proof the business can do better than flat. Anything close to zero again keeps the valuation debate alive.
trend
whether operating margin recovers after the 7.3% Q1 FY26 print
One quarter does not make a trend, but margin trajectory matters for both standalone value and how regulators view the combined entity.
cal
the next company update
The next report matters less for raw size than for tone: are management and filings talking about operations, or only about the pending transaction.
Analyst rankings
earnings predictability
75 / 100
A 75/100 predictability score means results are usually steady. In human-speak, analysts think this is a business you can model without needing drama every quarter.
risk rank
3
Risk rank measures balance-sheet and operating safety relative to other stocks. A 3 says this is not reckless, but it is not a bunker stock either.
price stability
70 / 100
A 70/100 stability score says the chart usually behaves itself. That's useful if you want industrial exposure without constant whiplash.
source: institutional data
Institutional activity
142 buyers vs. 153 sellers in 3q2025. total institutional holdings: 14.3M shares.
source: institutional data
Price targets
3-5 year target range
$97
$271
$208
current price
$184
target midpoint · 12% from current · 3-5yr high: $280 (+35% · 9% ann'l return)
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