VESTIS CORP (VSTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSTS - US29430C1027 - Common Stock
6.71 USD
+0.16 (+2.44%)
6.69 USD
-0.02 (-0.3%)
We assign a fundamental rating of 3 out of 10 to VSTS. VSTS was compared to 81 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of VSTS have multiple concerns. VSTS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VSTS was profitable.
VSTS had a positive operating cash flow in the past year.
VSTS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VSTS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.38%, VSTS is in line with its industry, outperforming 41.98% of the companies in the same industry.
VSTS's Return On Equity of -4.65% is in line compared to the rest of the industry. VSTS outperforms 41.98% of its industry peers.
With a Return On Invested Capital value of 2.18%, VSTS perfoms like the industry average, outperforming 45.68% of the companies in the same industry.
VSTS had an Average Return On Invested Capital over the past 3 years of 3.96%. This is significantly below the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.38% | ||
| ROE | -4.65% | ||
| ROIC | 2.18% |
ROA(3y)2.03%
ROA(5y)2.6%
ROE(3y)7.32%
ROE(5y)6.24%
ROIC(3y)3.96%
ROIC(5y)3.76%
1.3 Margins
With a Operating Margin value of 3.04%, VSTS perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
VSTS's Operating Margin has declined in the last couple of years.
The Gross Margin of VSTS (26.50%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VSTS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.5% |
OM growth 3Y-24.82%
OM growth 5Y-12.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.91%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
VSTS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VSTS has been increased compared to 1 year ago.
VSTS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that VSTS is in the distress zone and has some risk of bankruptcy.
VSTS has a worse Altman-Z score (1.45) than 65.43% of its industry peers.
The Debt to FCF ratio of VSTS is 229.06, which is on the high side as it means it would take VSTS, 229.06 years of fcf income to pay off all of its debts.
VSTS has a Debt to FCF ratio (229.06) which is comparable to the rest of the industry.
VSTS has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
VSTS has a Debt to Equity ratio of 1.49. This is in the lower half of the industry: VSTS underperforms 75.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 229.06 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.29
WACC7.6%
2.3 Liquidity
A Current Ratio of 2.08 indicates that VSTS has no problem at all paying its short term obligations.
VSTS's Current ratio of 2.08 is fine compared to the rest of the industry. VSTS outperforms 72.84% of its industry peers.
VSTS has a Quick Ratio of 1.64. This is a normal value and indicates that VSTS is financially healthy and should not expect problems in meeting its short term obligations.
VSTS's Quick ratio of 1.64 is fine compared to the rest of the industry. VSTS outperforms 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for VSTS have decreased strongly by -69.35% in the last year.
Looking at the last year, VSTS shows a decrease in Revenue. The Revenue has decreased by -2.53% in the last year.
VSTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.31% yearly.
EPS 1Y (TTM)-69.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.73%
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y0.59%
Revenue growth 5Y1.31%
Sales Q2Q%4.05%
3.2 Future
VSTS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 57.30% yearly.
Based on estimates for the next years, VSTS will show a small growth in Revenue. The Revenue will grow by 1.18% on average per year.
EPS Next Y76.53%
EPS Next 2Y61.75%
EPS Next 3Y57.3%
EPS Next 5YN/A
Revenue Next Year-2.17%
Revenue Next 2Y-0.24%
Revenue Next 3Y1.18%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 35.32, which means the current valuation is very expensive for VSTS.
The rest of the industry has a similar Price/Earnings ratio as VSTS.
When comparing the Price/Earnings ratio of VSTS to the average of the S&P500 Index (26.84), we can say VSTS is valued slightly more expensively.
VSTS is valuated rather expensively with a Price/Forward Earnings ratio of 20.01.
72.84% of the companies in the same industry are more expensive than VSTS, based on the Price/Forward Earnings ratio.
VSTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.32 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSTS is valued a bit cheaper than the industry average as 67.90% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VSTS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 153.38 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
VSTS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VSTS's earnings are expected to grow with 57.30% in the coming years.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y61.75%
EPS Next 3Y57.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.08%, VSTS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.89, VSTS pays a better dividend. On top of this VSTS pays more dividend than 86.42% of the companies listed in the same industry.
VSTS's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
VSTS has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
VSTS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-34.36%
EPS Next 2Y61.75%
EPS Next 3Y57.3%
6.71
+0.16 (+2.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.55%
Inst Owner Change-4.17%
Ins Owners1.49%
Ins Owner Change32.66%
Market Cap884.85M
Revenue(TTM)2.73B
Net Income(TTM)-40.22M
Analysts52.31
Price Target6.32 (-5.81%)
Short Float %10.03%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP-34.36%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.18%
Min EPS beat(2)-48.25%
Max EPS beat(2)-0.12%
EPS beat(4)1
Avg EPS beat(4)-43.07%
Min EPS beat(4)-134.35%
Max EPS beat(4)10.43%
EPS beat(8)2
Avg EPS beat(8)-23.49%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)2.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)2.91%
Revenue beat(8)1
Avg Revenue beat(8)-2.31%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)9.09%
PT rev (3m)7.21%
EPS NQ rev (1m)-9.54%
EPS NQ rev (3m)-9.54%
EPS NY rev (1m)9.5%
EPS NY rev (3m)13.78%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-2.45%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.32 | ||
| Fwd PE | 20.01 | ||
| P/S | 0.32 | ||
| P/FCF | 153.38 | ||
| P/OCF | 13.78 | ||
| P/B | 1.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.62 |
EPS(TTM)0.19
EY2.83%
EPS(NY)0.34
Fwd EY5%
FCF(TTM)0.04
FCFY0.65%
OCF(TTM)0.49
OCFY7.26%
SpS20.74
BVpS6.56
TBVpS-2.16
PEG (NY)0.46
PEG (5Y)N/A
Graham Number5.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.38% | ||
| ROE | -4.65% | ||
| ROCE | 3.33% | ||
| ROIC | 2.18% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 4.13% | ||
| OM | 3.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.5% | ||
| FCFM | 0.21% |
ROA(3y)2.03%
ROA(5y)2.6%
ROE(3y)7.32%
ROE(5y)6.24%
ROIC(3y)3.96%
ROIC(5y)3.76%
ROICexc(3y)4.01%
ROICexc(5y)3.8%
ROICexgc(3y)7.43%
ROICexgc(5y)7.03%
ROCE(3y)6.04%
ROCE(5y)5.74%
ROICexgc growth 3Y-21.4%
ROICexgc growth 5YN/A
ROICexc growth 3Y-22.01%
ROICexc growth 5YN/A
OM growth 3Y-24.82%
OM growth 5Y-12.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.91%
GM growth 5Y-0.73%
F-Score3
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 229.06 | ||
| Debt/EBITDA | 5.69 | ||
| Cap/Depr | 40.88% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 0.89 | ||
| Cash Conversion | 28.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 1.45 |
F-Score3
WACC7.6%
ROIC/WACC0.29
Cap/Depr(3y)51.32%
Cap/Depr(5y)55.68%
Cap/Sales(3y)2.57%
Cap/Sales(5y)2.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-69.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.73%
EPS Next Y76.53%
EPS Next 2Y61.75%
EPS Next 3Y57.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y0.59%
Revenue growth 5Y1.31%
Sales Q2Q%4.05%
Revenue Next Year-2.17%
Revenue Next 2Y-0.24%
Revenue Next 3Y1.18%
Revenue Next 5YN/A
EBIT growth 1Y-49.05%
EBIT growth 3Y-24.37%
EBIT growth 5Y-11.1%
EBIT Next Year131.76%
EBIT Next 3Y40.76%
EBIT Next 5YN/A
FCF growth 1Y-98.53%
FCF growth 3Y-66.71%
FCF growth 5Y-49.36%
OCF growth 1Y-86.39%
OCF growth 3Y-34.9%
OCF growth 5Y-22.61%
VESTIS CORP / VSTS FAQ
What is the fundamental rating for VSTS stock?
ChartMill assigns a fundamental rating of 3 / 10 to VSTS.
Can you provide the valuation status for VESTIS CORP?
ChartMill assigns a valuation rating of 4 / 10 to VESTIS CORP (VSTS). This can be considered as Fairly Valued.
How profitable is VESTIS CORP (VSTS) stock?
VESTIS CORP (VSTS) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for VSTS stock?
The Price/Earnings (PE) ratio for VESTIS CORP (VSTS) is 35.32 and the Price/Book (PB) ratio is 1.02.
Is the dividend of VESTIS CORP sustainable?
The dividend rating of VESTIS CORP (VSTS) is 3 / 10 and the dividend payout ratio is -34.36%.