Unifi, Inc. (UFI): A Bull Case Theory

We came across a bullish thesis on Unifi, Inc. on Value Degen’s Substack’s Substack by Unemployed Value Degen. In this article, we will summarize the bulls’ thesis on UFI. Unifi, Inc.’s share was trading at $3.45 as of December 1st. UFI’s forward P/E was 63.29 according to Yahoo Finance.

UNIFI, Inc. (UFI) appears well-positioned for a recovery after enduring one of the harshest downturns in the textile industry. Following the pandemic-induced supply chain crisis, UFI faced an extended destocking period and tariff uncertainty from recent policy shifts, delaying—but not destroying—its rebound. As these pressures ease, demand normalization and restocking across retail channels could drive a strong cyclical recovery.

The company’s U.S. manufacturing base and exposure to tariffs facing lower-cost Indian competitors further strengthen its domestic advantage. With about 60% of revenue generated in the U.S. and ample room for penetration in recycled polyester products, UFI stands to benefit meaningfully once demand returns. Management expects at least 10% revenue growth in 2026, supported by cost-cutting initiatives and asset optimization. The sale of the Madison, North Carolina facility reduced debt by over $40 million and is projected to save $20 million annually, moving UFI closer to breakeven even under current weak conditions.

With $571 million in trailing revenues versus a normalized $700 million, UFI’s valuation remains deeply discounted—trading at a 0.14x price-to-sales ratio compared to historical 1.0x levels. A return to prior revenue and multiple ranges could imply a share price between $22 and $35, suggesting fivefold upside potential from current levels.

Insider confidence, particularly from Home Depot co-founder Ken Langone’s sizeable stake and board involvement, reinforces trust in management’s execution through the cycle. With manageable leverage, strategic cost controls, and improving macro tailwinds, UFI appears positioned to survive the downturn and deliver outsized returns as the textile cycle turns.

Previously we covered a bullish thesis on Vermilion Energy Inc. (VET) by Unemployed Value Degen in March 2025, which highlighted its European gas expansion and deleveraging focus. The stock has appreciated by approximately by 19.20% since our coverage. The thesis remains valid as a long-term value play. Unemployed Value Degen similarly emphasizes cyclical recovery and value creation in Unifi, Inc. (UFI).

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Disclosure: None.