NEW YORK (TheStreet) -- UniFirst (UNF) - Get Report shares closed trading up 0.41% to $111.85 on Tuesday ahead of the release of the workplace uniform manufacturer's third quarter earnings results before the opening bell tomorrow.

Analysts on average are expecting the company to report earnings of $1.39 per share, a decline from the $1.53 per share it earned during the same period last year.

Analysts are also expecting the company to report generating revenue of $360.4 million, ahead of the $352.2 million it generated in the year ago period.

TheStreet Ratings team rates UNIFIRST CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate UNIFIRST CORP (UNF) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • UNF's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • UNF's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, UNF has a quick ratio of 2.02, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 38.10% is the gross profit margin for UNIFIRST CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.03% is above that of the industry average.
  • Net operating cash flow has increased to $54.19 million or 33.92% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.26%.
  • You can view the full analysis from the report here: UNF Ratings Report