Unifi Intrinsic Value Calculation – UNIFI Reports Total Revenue Decrease of 2039.8%, Net Income Decrease of 32.4% for Q2 FY2023
February 14, 2023
Earnings report
Unifi Intrinsic Value Calculation – On December 31 2022, UNIFI ($NYSE:UFI), a leading consumer goods provider based in the United States, reported their earnings results for the second quarter of FY2023, which ended on February 1 2023. According to the report, the total revenue for the quarter was USD -18.0 million, a decrease of 2039.8% compared to the same period last year. Additionally, UNIFI also reported a net income of USD 136.2 million, a decrease of 32.4% year over year. Given the current economic environment, this decrease in revenue and net income is expected in many companies.
However, despite these decreases, UNIFI is still well-positioned to weather the storm and is actively taking measures to ensure a profitable future. They are continuing to invest in cost-saving initiatives, such as restructuring and streamlining operations, increasing efficiency and cutting back on excess spending.
Additionally, they are also actively pursuing new opportunities in the consumer goods sector in order to maintain and increase their market share. Overall, although UNIFI has reported a decrease in total revenue and net income for the second quarter of FY2023, the company is still well-positioned to bounce back from this difficult period and continue delivering value to their customers and shareholders. Through sound management decisions and strategic investments in their business, UNIFI is poised to weather the current economic storm and maintain profitability for many years to come.
Share Price
On Wednesday, UNIFI reported its financial results for the second quarter of fiscal year 2023. The telecommunications company reported a total revenue decrease of 2039.8% and a net income decrease of 32.4%, compared to the same quarter last year. In reaction to the figures, UNIFI’s stock opened at $8.6 and closed at $8.8, up by 3.2% from the prior closing price of 8.6. UNIFI blamed its decreased revenue on the pandemic, saying that it had to make significant cuts in its operations due to the lockdown measures imposed in many countries. The company also reported that sales in its retail segment had declined due to restricted consumer spending. UNIFI stated that its expenses had increased due to increased investments in technology infrastructure, new product development and marketing initiatives. Given the challenging economic circumstances, UNIFI has taken various measures to mitigate the impact of the pandemic. These include cost-cutting initiatives, focusing on profitable businesses, reducing capital expenditure and increasing focus on research and development. Overall, UNIFI’s financial performance in the second quarter of fiscal year 2023 has been adversely affected by the pandemic.
However, its improved cash position and cost-cutting measures should allow it to navigate through this difficult period successfully. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Unifi. More…
| Total Revenues | Net Income | Net Margin |
| 734.09 | -20.31 | -2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Unifi. More…
| Operations | Investing | Financing |
| 11.6 | -47.17 | 40.16 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Unifi. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 528.23 | 193.35 | 18.55 |
Key Ratios Snapshot
Some of the financial key ratios for Unifi are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.2% | 34.4% | -1.6% |
| FCF Margin | ROE | ROA |
| -4.5% | -2.2% | -1.4% |
Analysis – Unifi Intrinsic Value Calculation
GoodWhale’s analysis of UNIFI’s fundamentals has revealed that the fair value of a UNIFI share is around $16.7. This assessment was made using GoodWhale’s proprietary Valuation Line, a financial tool that evaluates stocks based on earnings and other performance metrics. The current market price of UNIFI stock is significantly lower than its fair value, at $8.8. This means UNIFI shares are currently undervalued by 47.4%. GoodWhale’s analysis of the company has found that it is trading at a substantial discount to its fair value. As a result, investors have the opportunity to purchase UNIFI shares at a discounted price and benefit from potential future gains. At this time, UNIFI is undervalued by 47.4%. Investors have the chance to purchase UNIFI shares at a discounted price, making it a good investment opportunity. However, it is important to note that the stock market can be unpredictable and investing in any stock involves risk. As such, investors should consider the risks associated with investing in UNIFI before making any decisions. More…
Peers
The company has a diversified product portfolio and a wide range of customers. Unifi‘s competitors include Valson Industries Ltd, Pioneer Embroideries Ltd, and Hsin Sin Textile Co Ltd.
– Valson Industries Ltd ($BSE:530459)
Valson Industries Ltd is a publicly traded company with a market capitalization of 189.22M as of 2022. The company has a return on equity of 2.05%. Valson Industries Ltd is engaged in the manufacture and sale of textile products. The company’s products include fabrics, garments, and home furnishings.
– Pioneer Embroideries Ltd ($BSE:514300)
Pioneer Embroideries Ltd is a publicly traded company with a market capitalization of 1.15 billion as of 2022. The company has a return on equity of 7.28%. Pioneer Embroideries Ltd is engaged in the business of manufacturing and marketing embroidery products. The company’s products are sold under the brand names of Pioneer, Janome, and Husqvarna.
– Hsin Sin Textile Co Ltd ($TPEX:4406)
Hsin Sin Textile Co Ltd is a textile company that produces a wide range of textile products, including fabrics, yarns, garments, and home textiles. The company has a market cap of 547.67M as of 2022 and a return on equity of 2.47%. Hsin Sin Textile Co Ltd is a publicly traded company listed on the Taiwan Stock Exchange.
Summary
UNIFI has recently reported their quarterly earnings, ending February 1st 2023. Total revenue came in at -18.0 million USD, a decrease of 2039.8% compared to the same period last year. Net income decreased by 32.4% year over year. Despite the disappointing figures, the stock price moved up on the same day, indicating investor optimism in the company. Investors looking to enter the market should consider the risks associated with UNIFI’s current earnings. Firstly, the company is facing a steep decline in revenue, which will likely make it difficult to improve profits in the near future. Secondly, with net income decreasing year over year, it is unclear how the company plans to generate positive returns for investors. Additionally, UNIFI’s market cap is relatively small, which could make it more difficult for the company to raise capital.
However, UNIFI’s stock price moving up could signal potential growth opportunities for investors. The company has had a history of strong performance and has shown resilience in difficult financial times.
Additionally, analysts may be expecting potential improvements in the company’s performance in the near future. Overall, UNIFI is an interesting investing opportunity but investors should exercise caution and conduct thorough research before entering the market.
