Company Overview
Unifi, Inc. operates as a manufacturer and distributor of recycled and synthetic textile products, serving markets across North America, Central America, South America, Asia, and Europe. The company specializes in producing polyester items, including partially oriented yarn, textured yarns, and solution and package dyed fabrics. It functions within the Consumer Cyclical sector, specifically categorized under the Textile Manufacturing industry, which implies its performance is closely tied to consumer spending patterns and global commodity prices. With a market capitalization of $66.52M, annual revenue of $542.13M, and an employee base of 2500, the company represents a small-cap entity within its industry. These valuation and revenue figures indicate that Unifi, Inc. holds a relatively modest market position compared to larger textile conglomerates, suggesting a niche operational focus rather than broad market dominance.
Financial Health
The company reported revenue of $542.13M for the trailing twelve months, yet it posted a net income of -$22,387,000 and an EBITDA of -$16,135,000. The significant disparity between the positive revenue figure and the negative net income reveals a cost structure where operating expenses and taxes substantially erode gross profits. Despite the accounting losses, the company generated positive free cash flow of $13.94M, which provides a degree of financial flexibility to fund operations or reduce debt without immediate external financing. The financial margins present a challenging picture, with a gross margin of 1.0%, an operating margin of -5.1%, and a profit margin of -4.1%. These negative margins indicate that the company is currently unable to cover its fixed costs effectively, resulting in a loss on every dollar of sales generated. On the balance sheet, the company holds $30.19M in cash against $112.98M in debt, resulting in a debt-to-equity ratio of 49.12. This leverage profile suggests a highly leveraged balance sheet where debt obligations significantly exceed cash reserves. Liquidity is supported by a current ratio of 3.99, indicating that the company possesses ample current assets to cover its short-term liabilities. However, the return metrics show a return on equity of -9.6% and a return on assets of -6.1%, which reveals that management effectiveness is currently negative as the company destroys value rather than generating returns on its capital base.
Valuation Assessment
Valuation metrics for Unifi, Inc. show a trailing P/E ratio of N/A due to the lack of earnings, while the forward P/E stands at 5.26. The absence of a trailing P/E and the existence of a forward P/E imply that the market is pricing in future earnings recovery rather than validating current profitability. The price-to-book ratio is 0.29, which indicates that the stock is trading at a significant discount to its book value, suggesting the market assigns little premium to the company's tangible assets. Alternative valuation measures include a price-to-sales ratio of 0.12 and an EV/EBITDA of -9.25, which suggests the company is valued based on sales multiples rather than earnings power due to its current unprofitability. The stock has traded between a 52-week low of $2.96 and a 52-week high of $5.68. Without the current price explicitly provided in the facts, the trading range defines the volatility envelope within which the security has moved over the last year. The beta value is 0.72, indicating that the stock price exhibits lower volatility relative to the broader market, moving less aggressively than the S&P 500 during periods of market fluctuation.
Growth & Income
Revenue growth for the year-over-year period is -12.6%, while earnings growth is N/A because the company is currently reporting net losses. Since earnings are negative, the concept of earnings growing faster or slower than revenue is not applicable in a traditional sense, but the contraction in revenue suggests a decline in sales volume or pricing pressure that has directly contributed to the loss. Unifi, Inc. does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Consequently, the company does not distribute income to shareholders and instead retains its earnings, though in this specific period, retained earnings are negative. The overall growth and income profile is characterized by revenue contraction, a lack of current profitability, and no dividend distribution, positioning the stock strictly as a speculative growth play dependent on a future turnaround in textile demand and operational efficiency.