UFI - Unifi Looking To Translate Solid ESG Credentials Into Better Financials

• Unifi was an early mover in producing polyester and nylon yarns made from recycled plastics (REPREVE), and this product is now very much in line with apparel/retail industry ESG trends.
• Management has taken some recent hits from labor and input costs, and long-term material sourcing could create some challenges, but new machinery should improve productions.
• Unifi management laid out some bold targets at its recent investor day, including low-to-mid teens revenue and EBITDA growth, with REPREVE continuing to outgrow the overall business.
• While I think management's targets may be a little too aggressive, I do think the company is well-placed for improved revenue growth and margins, and currently looks undervalued.

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