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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2713
Positioning
Market Dominance
Manufacturing
Textiles
$87M
Edmund M. Ingle
Unifi, Inc. engages in the manufacture and sale of recycled and synthetic products. It operates in four segments: Polyester, Nylon, Brazil, Asia, and Asia. The Nylon segment provides virgin or recycled textured, solution dyed, and spandex covered yarns to knitters and weavers that produce fabric primarily for the apparel, hosiery, medical markets.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$UFI UNIFI INC | 46 | 41 | 48 | 35 | - | - | -21.4% | -12.9% | 1.4% | -7.0% | -9.0% | -17.6% | 0.0% | 66.0x | $87M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
UNIFI INC (UFI) receives a "Reduce" rating with a composite score of 45.6/100. It ranks #2713 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Edmund M. Ingle
Chief Executive Officer
Labor Force
3,100
41
33
71
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for UFI
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for UFI.
View All RatingsMaterial decline in asset turnover efficiency detected
ROE proxy -21.4% (sector -2.5%)
GM 1% vs sector 43%, OM -7% vs sector 1%
Capital turnover N/A
Rev growth -18%, 10yr history
Interest coverage -4.0x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
UNIFI INC receives a Reduce rating from our analysis, with a composite score of 45.6/100 and 2 out of 5 stars, ranking #2713 out of 7,333 stocks. UFI's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
UFI's quality score of 41/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -21.4% (sector avg: -2.5%), gross margins of 1.4% (sector avg: 42.5%), net margins of -9.0% (sector avg: -0.2%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 48/100, UFI appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 0.34x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
UNIFI INC's investment score of 33/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -17.6% vs. a sector average of 5.9% and a return on assets of -12.9% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
UFI is currently showing below-average momentum at 35/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at -17.6% year-over-year, while a beta of 0.36 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
UFI shows good financial stability with a score of 71/100. Key stability metrics include a beta of 0.36 and a debt-to-equity ratio of 66.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 50/100 for UFI suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 66.00x), micro-cap liquidity risk. With a $87M market cap (micro-cap), UNIFI INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
UNIFI INC is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2713 of 7,333 overall (63rd percentile). Key comparisons include ROE of -21.4% trailing the -2.5% sector median and operating margins of -7.0% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While UFI currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Investment (33) would have the largest impact on the composite score.
ROE 763% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 97% BELOW SECTOR MEDIAN
Op. Margin 643% BELOW SECTOR MEDIAN
AUDIT DATA AS OF DEC 28, 2025 (Q3 FY2025)
We rate UNIFI INC (UFI) as a Reduce with a composite score of 45.6/100 at a current price of $3.95. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in stability (71th percentile) and value (48th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (33th percentile) and momentum (35th percentile) tempers our overall conviction. We assign a No Moat rating (13/100), Medium uncertainty, and Poor capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs; the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
UNIFI INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 45.6/100 places it at rank #2713 in our full 7,333-stock universe. At $87M in market capitalization, UNIFI INC is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -18% combined with momentum at the 35th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 1% (-41.1pp vs sector) narrow to operating margins of -7% (-8.3pp vs sector) and net margins of -9.0%, yielding a gross-to-net conversion rate of -648%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $3.95, UNIFI INC is trading near fair value based on current fundamentals. Our value factor score of 48/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at P/B of 0.3x, P/S of 0.1x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
The stock may offer contrarian value if near-term headwinds prove transitory — the current weakness in factor scores may reverse if business fundamentals stabilize.
The Reduce rating (composite 45.6/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Revenue decline of -18% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
Thin net margins of -9.0% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
We assign a Medium uncertainty rating to UNIFI INC. The stock presents a balanced risk profile: current negative profitability (net margin -9.0%) and low beta of 0.36 — while defensive, this may indicate limited upside participation in bull markets. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: current negative profitability (net margin -9.0%); low beta of 0.36 — while defensive, this may indicate limited upside participation in bull markets; the combination of leverage (66% D/E) and thin margins (-9.0% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 71th percentile and quality factor at the 41th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: above-average stability (71th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate UNIFI INC's capital allocation as Poor. Key concerns include low returns on equity (-21.4%), negative profitability, weak asset returns (ROA -12.9%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — UNIFI INC significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, UNIFI INC receives a Reduce rating with a composite score of 45.6/100 (rank #2713 of 7,333). Our quantitative framework assigns a No Moat (13/100, trend: stable), Medium uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 46/100.
Our analysis does not support a constructive view on UNIFI INC at this time. The combination of limited competitive advantages, medium uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign UNIFI INC a meaningful economic moat, scoring 13/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, financial resilience, reached only 7.5/20.
The strongest moat sources are financial resilience (7.5/20) and growth durability (2.8/20). Interest coverage -4.0x. Rev growth -18%, 10yr history. These pillars form the core of UNIFI INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (0.4/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect UNIFI INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include declining revenues (-18%) that pressure the earnings outlook. The margin cascade from 1% gross to -7% operating to -9.0% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 41th percentile.
The margin profile shows gross margins of 1%, operating margins of -7%, net margins of -9.0%. Return metrics include ROE of -21.4% and ROA of -12.9%. Relative to the Manufacturing sector, gross margins are 41.1 percentage points below the sector median of 43%, and ROE of -21.4% compares to a sector median of -2.5%.
The balance sheet reflects moderate leverage with D/E of 66%, revenue growth of -18%. The sector median D/E is 0%, putting UNIFI INC at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
Unifi (UFI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Although U.S. stocks closed slightly higher on Monday, there were a few notable insider trades. When insiders purchase shares, it indicates their confidence in the company's prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision. Below is a look at a few recent notable insider purchases. For more, check out Benzinga's insider transactions platform. Enphase Energy The Trade: Enphase Energy, Inc. (NASDAQ: ENPH) Director Thurman J Rodgers ...
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