DCF Tool

UNF

Unifirst Corp. – Apparel Accessories and Other Apparel Manufacturing
Headquartered in Wilmington, Mass., UniFirst Corporation (NYSE: UNF) is a North American leader in the supply and servicing of uniform and workwear programs, as well as the delivery of facility service programs. Together with its subsidiaries, the Company also provides first aid and safety products, and manages specialized garment programs for the cleanroom and nuclear industries. UniFirst manufactures its own branded workwear, protective clothing, and floorcare products; and with 260 service locations, over 300,000 customer locations, and 14,000-plus employee Team Partners, the Company outfits nearly 2 million workers each business day.
Analysis Results
Intrinsic Value $374.07
Latest Price $168.23
Relative Value 55% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 11.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 230 214
2023 256 222
2024 285 231
2025 317 240
2026 353 249
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6840 million. This corresponds to a present value of 4490 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1160 million. Adding in the terminal value gives a total present value of 5650 million.

There are presently 15.1 million outstanding shares, so the intrinsic value per share is 374.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,207,584,000
Current Cash 1,025,736,000
Current Liabilities 509,340,000
Current Debt 0
Non-Cash Working Capital (NCWC) 672,508,000
Change in NCWC 388,108,000
EBIT 391,650,000
Tax Provision 91,520,000
Depreciation and Amortization 211,910,000
Capital Expenditure -267,278,000
Unlevered Free Cash Flow 633,356,257
Current Assets 969,334,000
Current Cash 474,838,000
Current Liabilities 210,096,000
Current Debt 0
Non-Cash Working Capital (NCWC) 284,400,000
Change in NCWC -54,206,000
EBIT 172,729,000
Tax Provision 42,118,000
Depreciation and Amortization 104,697,000
Capital Expenditure -116,717,000
Unlevered Free Cash Flow 65,606,480
Current Assets 913,791,000
Current Cash 385,341,000
Current Liabilities 189,844,000
Current Debt 0
Non-Cash Working Capital (NCWC) 338,606,000
Change in NCWC 22,779,000
EBIT 232,008,000
Tax Provision 58,790,000
Depreciation and Amortization 103,333,000
Capital Expenditure -119,815,000
Unlevered Free Cash Flow 180,976,818
Current Assets 784,800,000
Current Cash 270,512,000
Current Liabilities 198,461,000
Current Debt 0
Non-Cash Working Capital (NCWC) 315,827,000
Change in NCWC 29,201,000
EBIT 182,376,000
Tax Provision 23,351,000
Depreciation and Amortization 96,662,000
Capital Expenditure -112,747,000
Unlevered Free Cash Flow 172,748,326
Current Assets 814,226,000
Current Cash 349,752,000
Current Liabilities 177,848,000
Current Debt 0
Non-Cash Working Capital (NCWC) 286,626,000
Change in NCWC 25,442,000
EBIT 166,083,000
Tax Provision 44,927,000
Depreciation and Amortization 88,879,000
Capital Expenditure -108,554,000
Unlevered Free Cash Flow 107,035,749
Current Assets 777,614,000
Current Cash 363,795,000
Current Liabilities 152,635,000
Current Debt 0
Non-Cash Working Capital (NCWC) 261,184,000
Change in NCWC 58,640,000
EBIT 201,160,000
Tax Provision 78,345,000
Depreciation and Amortization 81,612,000
Capital Expenditure -98,235,000
Unlevered Free Cash Flow 165,683,747
Current Assets 661,823,000
Current Cash 276,553,000
Current Liabilities 184,111,000
Current Debt 1,385,000
Non-Cash Working Capital (NCWC) 202,544,000
Change in NCWC -11,640,000
EBIT 200,384,000
Tax Provision 76,969,000
Depreciation and Amortization 77,113,000
Capital Expenditure -101,163,000
Unlevered Free Cash Flow 88,063,059
Current Assets 589,290,000
Current Cash 191,769,000
Current Liabilities 191,041,000
Current Debt 7,704,000
Non-Cash Working Capital (NCWC) 214,184,000
Change in NCWC -2,075,000
EBIT 193,275,000
Tax Provision 75,426,000
Depreciation and Amortization 71,752,000
Capital Expenditure -91,808,000
Unlevered Free Cash Flow 96,519,554
Current Assets 561,374,000
Current Cash 197,479,000
Current Liabilities 258,889,000
Current Debt 111,253,000
Non-Cash Working Capital (NCWC) 216,259,000
Change in NCWC -10,303,000
EBIT 186,203,000
Tax Provision 70,924,000
Depreciation and Amortization 69,607,000
Capital Expenditure -103,526,000
Unlevered Free Cash Flow 71,588,526
Current Assets 487,680,000
Current Cash 120,123,000
Current Liabilities 145,525,000
Current Debt 4,530,000
Non-Cash Working Capital (NCWC) 226,562,000
Change in NCWC 12,878,000
EBIT 151,108,000
Tax Provision 55,745,000
Depreciation and Amortization 66,439,000
Capital Expenditure -74,549,000
Unlevered Free Cash Flow 99,992,685

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