Unifi Inc (NYSE: UFI)

Sector: Consumer Cyclical Industry: Textile Manufacturing CIK: 0000100726
Market Cap 73.22 Mn
P/B 0.32
P/E -3.27
P/S 0.14
ROIC (Qtr) -4.87
Div Yield % 0.00
Rev 1y % (Qtr) -12.61
Total Debt (Qtr) 112.98 Mn
Debt/Equity (Qtr) 0.49
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About

Unifi, Inc., a New York corporation, operates under the ticker symbol UFI in the industry of manufacturing and selling innovative recycled and synthetic products. The company's main business activities involve the production of yarns and fabrics for various end-use markets, with operations spanning across the Americas, Brazil, and Asia. Unifi's revenue is primarily generated through the sale of recycled and synthetic products, such as partially oriented yarn (POY), textured, solution and package dyed, twisted, beamed, and draw wound yarns (Unifi,...

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Investment thesis

Bull case

  • Strong tangible asset base of 382.91M provides 3.39x coverage of total debt 112.98M, indicating robust asset backing and low credit risk.
  • Retained earnings of 217.99M provide full 2.23x coverage of long-term debt 97.74M, indicating strong internal capital position.
  • Tangible assets of 382.91M provide robust 30.06x coverage of other current liabilities 12.74M, indicating strong asset backing.
  • Retained earnings of 217.99M provide strong 17.11x coverage of other current liabilities 12.74M, indicating earnings quality.
  • Operating cash flow of 10.05M fully covers other non-current liabilities 5.31M by 1.89x, showing strong long-term stability.

Bear case

  • Operating cash flow of 10.05M barely covers its investment activities of 35.33M, with a coverage ratio of 0.28, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 30.19M against inventory of 103.08M, the 0.29 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Cash reserves of 30.19M provide limited coverage of acquisition spending of (7.59M), which is -3.98x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 10.05M shows concerning coverage of stock compensation expenses of 3.20M, with a 3.14 ratio indicating potential earnings quality issues.
  • Free cash flow of 52.98M provides weak coverage of capital expenditures of (42.92M), with a -1.23 ratio suggesting additional external financing needs for growth initiatives.

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Textile Manufacturing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AIN Albany International Corp /De/ 1.85 Bn 24.78 2.48 480.63 Mn
2 UFI Unifi Inc 0.07 Bn -3.27 0.14 112.98 Mn
3 CULP Culp Inc 0.04 Bn -4.05 0.21 21.37 Mn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.47 0.73
EV to Cash from Ops. EV/CFO 18.01 12.69
EV to Debt EV to Debt 1.60 2.88
EV to EBIT EV/EBIT -12.39 2.43
EV to EBITDA EV/EBITDA 20.87 8.43
EV to Free Cash Flow [EV/FCF] EV/FCF 3.42 21.73
EV to Market Cap EV to Market Cap 2.47 1.63
EV to Revenue EV/Rev 0.33 1.17
Price to Book Value [P/B] P/B 0.32 1.56
Price to Earnings [P/E] P/E -3.27 5.82
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.54
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -18.67
Dividend per Basic Share Div per Share (Qtr) 0.00 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 11.42
Interest Coverage Int. cover (Qtr) -1.74 -6.18
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 545.65 235.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 61.72 16.24
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 34.64 -14.26
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.04 -4.36
EBIT Growth (1y) % EBIT 1y % (Qtr) 19.53 -16.74
EBT Growth (1y) % EBT 1y % (Qtr) 17.23 -25.37
EPS Growth (1y) % EPS 1y % (Qtr) 32.97 -26.11
FCF Growth (1y) % FCF 1y % (Qtr) 311.40 73.38
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -78.77 -37.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.42 1.24
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.61 0.39
Current Ratio Curr Ratio (Qtr) 3.99 2.70
Debt to Equity Ratio Debt/Equity (Qtr) 0.49 0.51
Interest Cover Ratio Int Coverage (Qtr) -1.74 -6.18
Times Interest Earned Times Interest Earned (Qtr) -1.74 -6.18
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.80 1.47
EBIT Margin % EBIT Margin % (Qtr) -2.70 -3.37
EBT Margin % EBT Margin % (Qtr) -4.25 -4.63
Gross Margin % Gross Margin % (Qtr) 1.00 11.53
Net Profit Margin % Net Margin % (Qtr) -4.10 -4.67