WILMINGTON, Mass. - UniFirst Corporation (NYSE:UNF), a North American leader in uniform and workwear provision, announced an increase in its quarterly cash dividends for both its Common Stock and Class B Common Stock. Shareholders are set to receive $0.350 per share on Common Stock and $0.280 per share on Class B Common Stock, payable on January 3, 2025.
The decision by the Board of Directors will benefit shareholders of record as of December 6, 2024. This move reflects the company's continued financial growth and commitment to delivering shareholder value.
UniFirst is recognized for its comprehensive range of services, including the supply and servicing of uniform and workwear programs, facility service products, and first aid and safety supplies and services. The company also manages specialized garment programs for cleanroom and nuclear industries.
With over 270 service locations and more than 300,000 customer locations across North America, UniFirst is a major provider in its field, employing over 16,000 staff members and outfitting more than 2 million workers daily.
The company prides itself on its manufacturing capabilities, producing its own branded workwear, protective clothing, and floorcare products at five company-owned ISO-9001-certified manufacturing facilities.
This dividend increase is a testament to UniFirst's financial health and strategic position within the industry. The information for this financial update is based on a press release statement from UniFirst Corporation.
In other recent news, UniFirst Corporation reported record full-year revenues of $2.427 billion, an 8.7% increase from the prior fiscal year. The company's fourth quarter also saw strong performance with revenues rising to $639.9 million, an 11.9% increase, while net income stood at $44.6 million. Adjusted EBITDA for the quarter also surged 32.5% year-over-year to $95 million. These recent developments are largely attributed to an additional week of operations and the acquisition of Clean Uniform.
Financial analysts at Baird have adjusted their price target for UniFirst, increasing it slightly from $199.00 to $200.00, while maintaining a Neutral rating on the stock. This adjustment comes as UniFirst's management indicated challenges in achieving organic growth in fiscal year 2025, and the company's Adjusted EBITDA guidance fell short of the consensus by approximately $10 million, reflecting a more conservative outlook than what analysts had anticipated.
Looking ahead, UniFirst projects its fiscal 2025 revenue to be between $2.425 billion and $2.445 billion, with EPS ranging from $6.79 to $7.19. The company's Core Laundry Operations, which experienced a solid 4.6% organic growth for the year, are expected to grow between 1.3% and 2.3% in fiscal 2025. However, Specialty Garments revenues are anticipated to decrease by 4%. Despite these projections, UniFirst faces challenges in customer retention and competitive pricing, which may impact growth.
InvestingPro Insights
UniFirst Corporation's recent dividend increase aligns with its strong financial position and commitment to shareholder value. According to InvestingPro data, the company has maintained dividend payments for an impressive 42 consecutive years, with a current dividend yield of 0.71%. This consistency in dividend payments underscores UniFirst's financial stability and long-term growth strategy.
The company's financial health is further evidenced by its solid balance sheet. An InvestingPro Tip reveals that UniFirst holds more cash than debt, indicating a strong liquidity position. This financial prudence supports the company's ability to sustain and potentially increase dividends in the future.
UniFirst's revenue growth is also noteworthy, with an 8.7% increase over the last twelve months and a robust 11.89% growth in the most recent quarter. This growth trajectory, combined with a PEG ratio of 0.59, suggests that the company may be undervalued relative to its earnings growth potential.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and analysis. Currently, there are 9 more InvestingPro Tips available for UniFirst Corporation, providing a deeper understanding of the company's financial position and market performance.
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