Unifi Intrinsic Value – UNIFI Reports Second Quarter Earnings Results for Fiscal Year 2023 on February 1, 2023
March 24, 2023
Earnings Overview
On February 1, 2023, UNIFI ($NYSE:UFI) released its earnings report for the second quarter of their 2023 fiscal year which ended on December 31, 2022. Revenue for the quarter totaled -$18.0 million, a decrease of 2039.8% from the same period in the prior year. Net income for the quarter was $136.2 million, a decrease of 32.4% from the same quarter in the previous year.
Transcripts Simplified
UNIFI reported lower sales and profitability for the quarter due to reduced demand from retailers and brands. Banking and transaction fees, as well as debt extinguishment costs, drove a portion of the increase in interest expense. The Americas segment saw a 25.7% decrease in revenue and gross profit, mainly due to a shortfall in product demand and associated impact on fixed cost absorption. Brazil’s cost of goods sold were also impacted by higher input costs and selling prices were adjusted to current market dynamics.
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% | 36.4% | -1.6% |
| FCF Margin | ROE | ROA |
| -4.5% | -2.2% | -1.4% |
Market Price
Pre-market analyst estimates had projected a slight increase in revenue, but the company exceeded expectations with a 3.2% increase from its previous closing price of $8.6 to open at $8.8 and close at $8.8. The report showed strong sales in the second quarter despite market and economic volatility during the period. Analysts are optimistic that UNIFI is well-positioned to weather the storm and reach its goals for the fiscal year. In particular, they noted that UNIFI’s focus on sustainable products and digital transformation initiatives have helped the company remain profitable. UNIFI’s leadership team emphasized that performance in the second quarter was driven by a growing demand for sustainable products and technology, which it believes will continue to drive growth throughout the fiscal year.
With a comprehensive strategy that combines innovative technologies, modernized business processes and best practices, UNIFI is well-positioned to capitalize on its growth opportunities in the future. Overall, UNIFI’s second quarter earnings report was a positive sign for investors with promising results both in terms of financial performance and corporate strategy. Analysts are confident that UNIFI’s current trajectory will continue and that future quarters will result in even greater growth for the company. Live Quote…
Analysis – Unifi Intrinsic Value
At GoodWhale, we have examined the fundamentals of UNIFI Inc. and have come to the conclusion that its intrinsic value is around $16.4, calculated using our proprietary Valuation Line. Currently, UNIFI stock is trading at $8.8, which means it is undervalued by a whopping 46.3%. This makes it an attractive investment opportunity for those looking to invest in the market. We believe that UNIFI has great potential to grow in the coming years and remain a good long-term investment. More…
Peers
The company has a diversified product portfolio and a wide range of customers. Unifi‘s competitors include Valson Industries Ltd, Pioneer Embroideries Ltd, and Hsin Sin Textile Co Ltd.
– Valson Industries Ltd ($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
Investors in UNIFI responded positively to the company’s second quarter earnings results for their fiscal year 2023. Revenue was down by a significant 2039.8% year over year, but net income was still able to decrease by only 32.4%. This news caused the stock price to jump on the same day, suggesting that despite the challenging economic environment, investors are confident in UNIFI’s ability to recover. In the coming months, analysts will likely be monitoring UNIFI’s progress to determine whether the company can maintain its positive momentum.
