Latest Ratios: P/E Ratio 32.3x · EV/EBITDA 13.9x · ROE 6.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.7B | $3.3B | $3.6B | $3.3B | $3.5B | $4.4B | $3.8B | $3.8B | $3.7B | $2.9B | $2.6B |
| Enterprise Value | $4.5B | $3.2B | $3.5B | $3.2B | $3.1B | $4.4B | $3.8B | $3.4B | $3.4B | $2.6B | $2.2B |
| P/E Ratio → | 32.28 | 22.28 | 24.41 | 31.45 | 33.53 | 28.82 | 27.63 | 21.00 | 22.56 | 41.74 | 20.81 |
| P/S Ratio | 1.92 | 1.36 | 1.46 | 1.46 | 1.73 | 2.39 | 2.08 | 2.08 | 2.18 | 1.83 | 1.76 |
| P/B Ratio | 2.21 | 1.52 | 1.68 | 1.63 | 1.81 | 2.33 | 2.15 | 2.29 | 2.52 | 2.00 | 1.90 |
| P/FCF | 33.11 | 23.37 | 26.34 | 74.54 | — | 55.38 | 22.07 | 23.17 | 31.51 | 26.54 | 23.65 |
| P/OCF | 15.83 | 11.17 | 12.03 | 15.12 | 28.26 | 20.52 | 13.09 | 13.33 | 16.07 | 13.34 | 12.46 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.30 | 1.42 | 1.45 | 1.57 | 2.43 | 2.13 | 1.87 | 2.02 | 1.61 | 1.51 |
| EV / EBITDA | 13.91 | 9.70 | 10.64 | 12.65 | 12.84 | 14.65 | 13.78 | 10.02 | 12.21 | 12.77 | 7.82 |
| EV / EBIT | 24.66 | 16.24 | 18.26 | 23.40 | 23.39 | 22.57 | 22.21 | 14.19 | 18.30 | 22.25 | 10.88 |
| EV / FCF | — | 22.45 | 25.65 | 74.21 | — | 56.48 | 22.57 | 20.79 | 29.21 | 23.35 | 20.33 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.8% | 30.8% | 34.9% | 33.7% | 34.7% | 37.5% | 35.4% | 37.0% | 37.7% | 37.5% | 38.7% |
| Operating Margin | 7.6% | 7.6% | 7.6% | 6.0% | 6.7% | 10.7% | 9.6% | 12.8% | 10.8% | 6.9% | 13.7% |
| Net Profit Margin | 6.1% | 6.1% | 6.0% | 4.6% | 5.2% | 8.3% | 7.5% | 9.9% | 9.7% | 4.4% | 8.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.9% | 6.9% | 7.1% | 5.3% | 5.5% | 8.4% | 8.0% | 11.5% | 11.2% | 5.0% | 9.6% |
| ROA | 5.4% | 5.4% | 5.5% | 4.1% | 4.3% | 6.6% | 6.4% | 9.2% | 8.9% | 4.0% | 7.7% |
| ROIC | 6.8% | 6.8% | 6.9% | 5.6% | 5.7% | 7.8% | 8.4% | 14.2% | 11.9% | 7.9% | 15.3% |
| ROCE | 7.5% | 7.5% | 7.8% | 6.0% | 6.2% | 9.5% | 9.0% | 13.2% | 11.1% | 6.9% | 13.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.02 | 0.02 | — | — | — | — |
| Debt / EBITDA | 0.22 | 0.22 | 0.21 | 0.25 | 0.21 | 0.14 | 0.15 | — | — | — | — |
| Net Debt / Equity | — | -0.06 | -0.04 | -0.01 | -0.17 | 0.05 | 0.05 | -0.23 | -0.18 | -0.24 | -0.27 |
| Net Debt / EBITDA | -0.40 | -0.40 | -0.29 | -0.06 | -1.33 | 0.28 | 0.30 | -1.14 | -0.96 | -1.74 | -1.28 |
| Debt / FCF | — | -0.93 | -0.69 | -0.34 | — | 1.10 | 0.49 | -2.37 | -2.31 | -3.19 | -3.33 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | 220.39 |
Net cash position: cash ($204M) exceeds total debt ($72M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.12 | 3.12 | 3.25 | 3.14 | 4.36 | 4.33 | 4.61 | 4.81 | 3.95 | 4.58 | 5.09 |
| Quick Ratio | 1.83 | 1.83 | 1.85 | 1.66 | 2.84 | 3.06 | 3.37 | 3.31 | 2.62 | 3.28 | 3.67 |
| Cash Ratio | 0.72 | 0.72 | 0.62 | 0.34 | 1.54 | 2.01 | 2.26 | 2.03 | 1.36 | 1.97 | 2.38 |
| Asset Turnover | — | 0.88 | 0.90 | 0.87 | 0.82 | 0.77 | 0.82 | 0.88 | 0.92 | 0.87 | 0.86 |
| Inventory Turnover | 4.51 | 4.51 | 4.00 | 3.73 | 3.52 | 3.51 | 4.47 | 3.99 | 3.99 | 4.31 | 4.15 |
| Days Sales Outstanding | — | 42.81 | 41.93 | 45.62 | 45.46 | 41.64 | 38.62 | 41.04 | 43.20 | 42.94 | 38.93 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.7% | 0.7% | 0.7% | 0.6% | 0.4% | 0.4% | 0.2% | 0.1% | 0.1% | 0.1% |
| Payout Ratio | 16.6% | 16.6% | 16.0% | 21.3% | 20.1% | 12.0% | 11.6% | 4.6% | 2.6% | 4.1% | 2.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 4.5% | 4.1% | 3.2% | 3.0% | 3.5% | 3.6% | 4.8% | 4.4% | 2.4% | 4.8% |
| FCF Yield | 3.0% | 4.3% | 3.8% | 1.3% | — | 1.8% | 4.5% | 4.3% | 3.2% | 3.8% | 4.2% |
| Buyback Yield | 1.5% | 2.1% | 0.7% | 0.1% | 1.3% | 0.3% | 0.6% | 0.8% | 3.9% | 0.1% | 0.2% |
| Total Shareholder Yield | 2.0% | 2.9% | 1.3% | 0.8% | 1.9% | 0.7% | 1.0% | 1.0% | 4.1% | 0.2% | 0.3% |
| Shares Outstanding | — | $19M | $19M | $19M | $19M | $19M | $19M | $19M | $20M | $20M | $20M |
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Quick answers to the most common questions about buying UNF stock.
UniFirst Corporation's current P/E ratio is 32.3x. The historical average is 19.1x. This places it at the 93th percentile of its historical range.
UniFirst Corporation's current EV/EBITDA is 13.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.0x.
UniFirst Corporation's return on equity (ROE) is 6.9%. The historical average is 9.8%.
Based on historical data, UniFirst Corporation is trading at a P/E of 32.3x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
UniFirst Corporation's current dividend yield is 0.51% with a payout ratio of 16.6%.
UniFirst Corporation has 30.8% gross margin and 7.6% operating margin.
UniFirst Corporation's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin compression and EPS miss
Metrics are mathematically derived from official filings.
Margin Compression Amidst Stagnation
UniFirst's operating margin fell to 3.6% in 2026Q3 from 8.1% in 2025Q4, while gross margin dipped to 37.0%, reflecting cost pressures and negative operating leverage, as per quarterly financials.
The sequential decline in operating margin from 8.1% to 3.6% between 2025Q4 and 2026Q3, despite relatively stable gross margins around 37%, suggests that SG&A and distribution costs are absorbing a larger share of revenue. This is consistent with the prior income statement analysis showing SG&A rising to 27.7% of revenue. The margin gap versus Cintas (gross margin ~50.5%) remains wide, indicating structural inefficiencies in route density or cost structure that may not be quickly resolved. Investors should monitor whether the recent CRM/ERP investment begins to translate into operating leverage, but the current data suggests near-term margin pressure persists.
Subdued Returns on Invested Capital
ROIC has hovered between 0.8% and 2.1% over the past ten quarters, with 2026Q3 at 0.8%, reflecting a capital-intensive model and conservative balance sheet, as reported in financial statements.
ROIC of 0.8% in 2026Q3 is far below the cost of capital and significantly lags Cintas's 26.7%, indicating that UniFirst is not generating adequate returns on its invested capital. The low ROIC is driven by both thin operating margins and a large asset base, including $929.5M in PPE and capitalized rental garments. While the fortress balance sheet provides stability, it also means that equity is not being deployed into high-return projects, leading to a ROE of only 0.9% in the latest quarter. This suggests that the company is currently in a value-destructive phase, and investors should watch for any improvement in asset turnover or margin expansion to reverse this trend.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 82 days in 2026Q3 from 111 days a year earlier, driven by a sharp drop in DIO to 61 days, as per quarterly data, indicating improved inventory management but still elevated working capital needs.
The CCC improvement from 111 days in 2025Q3 to 82 days in 2026Q3 is primarily due to a reduction in days inventory outstanding from 90 to 61, which may reflect better inventory control or a shift in product mix. However, DSO remains stable around 42 days, and DPO is low at 21 days, suggesting limited supplier leverage. The working capital swings, as noted in the cash flow analysis, have caused FCF volatility, with FCF margin swinging from -3.9% to 8.9%. This indicates that UniFirst's cash conversion is not yet optimized, and further improvements in DPO or DSO could unlock additional cash flow.
Fortress Balance Sheet, Minimal Debt
Debt-to-equity stands at 0.04 with D/EBITDA of 1.45, reflecting negligible leverage and substantial financial flexibility, as reported in the latest quarter, though this conservative stance may cap returns.
UniFirst's leverage is exceptionally low, with total debt of $85M against $2.2B equity, and interest coverage is not reported but likely comfortable given the minimal debt. This fortress balance sheet provides a buffer against economic downturns and allows for opportunistic acquisitions, but it also means the company is not using debt to enhance shareholder returns. The low leverage is a double-edged sword: it reduces financial risk but also contributes to the lower ROE compared to peers like Cintas, which uses leverage to boost returns. Investors should monitor whether management shifts toward a more balanced capital structure to improve returns without compromising stability.
Ample Liquidity, But Cash Burn Risk
Current ratio of 3.11 and quick ratio of 2.61 indicate strong short-term solvency, with cash of $163.2M, as per the latest balance sheet, though negative FCF in 2026Q1 warrants monitoring.
UniFirst's liquidity position is robust, with a current ratio above 3 and a quick ratio above 2.5, indicating that the company can easily cover short-term obligations even under stress. However, the negative free cash flow of -$24M in 2026Q1 and the erratic FCF pattern suggest that liquidity could be strained if capital expenditures continue to rise and working capital needs increase. The large cash balance provides a cushion, but investors should watch whether the technology transformation leads to sustained cash outflows that erode this buffer. Overall, the liquidity position appears adequate to weather near-term operational challenges.
Misapplied P/E on Cash-Rich Model
The P/E ratio of 36.71 overstates UniFirst's valuation because it ignores the substantial cash balance and low leverage; EV/EBITDA of 15.88 is a more appropriate metric, as per current multiples.
The market often uses P/E to value UniFirst, but this is misleading given the company's fortress balance sheet with over $200M in cash and minimal debt. The high P/E of 36.71 partly reflects the low earnings base due to margin compression, not necessarily an expensive stock. EV/EBITDA of 15.88 is more meaningful because it strips out the cash and debt, providing a cleaner comparison to peers like Cintas (27.02) and Aramark (15.82). Investors should focus on EV-based multiples and also consider the potential hidden value in the Specialty Garments segment, which may not be fully captured in the current valuation. Using P/E alone could lead to an incorrect conclusion that UniFirst is overvalued relative to its intrinsic value.