NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income increased by 286.3% when compared to the same quarter one year prior, rising from -$4.05 million to $7.54 million.
- Despite currently having a low debt-to-equity ratio of 0.55, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that UFI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.30 is high and demonstrates strong liquidity.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, UNIFI INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- The gross profit margin for UNIFI INC is currently extremely low, coming in at 7.60%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.20% trails that of the industry average.
Unifi, Inc., together with its subsidiaries, processes and sells polyester and nylon yarns. The company provides polymer beads, partially oriented, textured, solution and package dyed, twisted, and beamed polyester yarns; and textured, solution dyed, and covered spandex nylon yarns. The company has a P/E ratio of 6.6, below the average industrial industry P/E ratio of 134.1 and below the S&P 500 P/E ratio of 17.7. Unifi has a market cap of $215.6 million and is part of the
industry. Shares are up 42.5% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet RatingsStaff