Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

UniFirst Corporation (UNF)

Company Dividend Discount ModelIndustry: Specialty Business ServicesSector: Industrials

Valuation Snapshot

Stable Growth$116.40 - $211.12$155.82
Multi-Stage$104.84 - $114.64$109.65
Blended Fair Value$132.73
Current Price$177.82
Upside-25.35%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS9.42%23.98%1.321.261.191.120.980.840.440.230.160.15
YoY Growth--5.48%5.63%6.30%14.57%15.59%90.07%95.83%45.55%0.69%0.31%
Dividend Yield--0.74%0.63%0.69%0.58%0.51%0.44%0.22%0.15%0.10%0.11%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)148.27
(-) Cash Dividends Paid (M)24.27
(=) Cash Retained (M)124.01
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)29.6518.5311.12
Cash Retained (M)124.01124.01124.01
(-) Cash Required (M)-29.65-18.53-11.12
(=) Excess Retained (M)94.35105.47112.88
(/) Shares Outstanding (M)18.5918.5918.59
(=) Excess Retained per Share5.085.676.07
LTM Dividend per Share1.311.311.31
(+) Excess Retained per Share5.085.676.07
(=) Adjusted Dividend6.386.987.38
WACC / Discount Rate9.87%9.87%9.87%
Growth Rate4.16%5.16%6.16%
Fair Value$116.40$155.82$211.12
Upside / Downside-34.54%-12.37%18.73%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)148.27155.92163.96172.42181.31190.66196.38
Payout Ratio16.37%31.09%45.82%60.55%75.27%90.00%92.50%
Projected Dividends (M)24.2748.4875.13104.39136.48171.59181.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.87%9.87%9.87%
Growth Rate4.16%5.16%6.16%
Year 1 PV (M)43.7144.1344.54
Year 2 PV (M)61.0662.2463.43
Year 3 PV (M)76.4978.7280.98
Year 4 PV (M)90.1593.6797.28
Year 5 PV (M)102.19107.19112.39
PV of Terminal Value (M)1,575.331,652.411,732.49
Equity Value (M)1,948.932,038.352,131.11
Shares Outstanding (M)18.5918.5918.59
Fair Value$104.84$109.65$114.64
Upside / Downside-41.04%-38.34%-35.53%

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