UniFirst dips -0.12
 | By Rifka Kats | Macroaxis Story |
In this story I am going to address all ongoing UniFirst shareholders. I will look into why despite ongoing dip, the longer-term fundamental drivers of the firm are still sound. UniFirst follows market closely. The company returns are highly-related to returns on the market. As market moves, the company is expected to follow. Sound fundamental drivers of the firm may also indicate signals of longer-term gains for the firm shareholders. Macroaxis considers UniFirst to be very steady. UniFirst owns Efficiency Ratio (i.e. Sharpe Ratio) of -0.0201 which indicates the firm had -0.0201% of return per unit of risk over the last 1 month. Macroaxis philosophy towards measuring risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. UniFirst Corporation exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate UniFirst Coefficient Of Variation of 2401.33, Semi Deviation of 1.14 and Risk Adjusted Performance of 0.0312 to confirm risk estimate we provide.
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Reviewed by Michael Smolkin
UniFirst average rating is Hold from 6 analysts. As of 04 of June UniFirst has Semi Deviation of 1.14, Risk Adjusted Performance of 0.0312 and Coefficient Of Variation of 2401.33. In relation to Fundamental Indicators, Macroaxis technical analysis interface makes it possible for you to check existing technical drivers of UniFirst as well as the relationship between them. In other words you can use this information to find out if the company will indeed mirror its model of past prices and volume data or the prices will eventually revert. We found nineteen technical drivers for UniFirst Corporation which can be compared to its competition. Please validate UniFirst Coefficient Of Variation, Treynor Ratio as well as the relationship between Treynor Ratio and Semi Variance to decide if UniFirst is priced more or less accurately providing market reflects its prevalent price of 158.78 per share. Given that UniFirst has Jensen Alpha of 0.1318, we advise you double-check UniFirst Corporation current market performance to make sure the company can sustain itself at future point.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Unifirst. Your research has to be compared to or analyzed against Unifirst's peers to derive any actionable benefits. When done correctly, Unifirst's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Unifirst.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Unifirst. In general, sophisticated investors focus on analyzing Unifirst stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Unifirst's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Unifirst's intrinsic value. In addition to deriving basic predictive indicators for Unifirst, many experienced traders also check how macroeconomic factors affect Unifirst price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Unifirst's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Unifirst's Liquidity
Unifirst financial leverage refers to using borrowed capital as a funding source to finance Unifirst ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Unifirst financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Unifirst's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Unifirst's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Unifirst's total debt and its cash.
Unifirst Gross Profit
Unifirst Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Unifirst previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Unifirst Gross Profit growth over the last 10 years. Please check Unifirst's gross profit and other fundamental indicators for more details.
Breaking it down a bit more
The small decline in market price for the last few months has created some momentum for investors as it was traded today as low as 157.41 and as high as 159.73 per share. The company directors and management did not add much value to UniFirst investors in May. However, diversifying your holdings with UniFirst Corporation or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.1018. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. UniFirst retains shares owned by institutions of 98.77% . UniFirst is selling for under 158.78. That is 0.12% down. Started trading at 158.78. UniFirst Price to Earnings Ratio is increasing over the last 5 years. Moreover, UniFirst Accumulated Other Comprehensive Income is rather stable at the moment. To sum up, our research shows that UniFirst is very steady with below average chance of financial distress in the next two years. Our present Buy/Hold/Sell recommendation on the firm is Strong Buy.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Unifirst. Please refer to our Terms of Use for any information regarding our disclosure principles.