VESTIS CORP (VSTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSTS - US29430C1027 - Common Stock
6.23 USD
-0.49 (-7.29%)
6.23 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to VSTS. VSTS was compared to 82 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of VSTS have multiple concerns. VSTS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year VSTS was profitable.
In the past year VSTS had a positive cash flow from operations.
VSTS had positive earnings in 4 of the past 5 years.
VSTS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VSTS has a worse Return On Assets (-1.03%) than 60.98% of its industry peers.
VSTS has a Return On Equity (-3.40%) which is in line with its industry peers.
VSTS has a Return On Invested Capital (2.72%) which is comparable to the rest of the industry.
VSTS had an Average Return On Invested Capital over the past 3 years of 5.26%. This is significantly below the industry average of 10.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.03% | ||
| ROE | -3.4% | ||
| ROIC | 2.72% |
ROA(3y)4%
ROA(5y)N/A
ROE(3y)10.89%
ROE(5y)N/A
ROIC(3y)5.26%
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of VSTS has declined.
VSTS has a Operating Margin of 3.43%. This is comparable to the rest of the industry: VSTS outperforms 46.34% of its industry peers.
VSTS's Operating Margin has improved in the last couple of years.
The Gross Margin of VSTS (27.44%) is comparable to the rest of the industry.
VSTS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.43% | ||
| PM (TTM) | N/A | ||
| GM | 27.44% |
OM growth 3Y14.13%
OM growth 5YN/A
PM growth 3Y-37.25%
PM growth 5YN/A
GM growth 3Y1.12%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VSTS is destroying value.
There is no outstanding debt for VSTS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that VSTS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VSTS (1.44) is worse than 67.07% of its industry peers.
VSTS has a debt to FCF ratio of 5.08. This is a neutral value as VSTS would need 5.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.08, VSTS is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
A Debt/Equity ratio of 1.45 is on the high side and indicates that VSTS has dependencies on debt financing.
The Debt to Equity ratio of VSTS (1.45) is worse than 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.08 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.38
WACC7.11%
2.3 Liquidity
A Current Ratio of 1.84 indicates that VSTS should not have too much problems paying its short term obligations.
VSTS has a better Current ratio (1.84) than 65.85% of its industry peers.
A Quick Ratio of 1.42 indicates that VSTS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.42, VSTS is in line with its industry, outperforming 57.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The earnings per share for VSTS have decreased strongly by -69.35% in the last year.
EPS 1Y (TTM)-69.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.73%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.05%
3.2 Future
The Earnings Per Share is expected to grow by 63.89% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.11% on average over the next years.
EPS Next Y61.21%
EPS Next 2Y59.42%
EPS Next 3Y63.89%
EPS Next 5YN/A
Revenue Next Year0.29%
Revenue Next 2Y1.67%
Revenue Next 3Y2.11%
Revenue Next 5YN/A
3.3 Evolution
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.79, the valuation of VSTS can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as VSTS.
The average S&P500 Price/Earnings ratio is at 26.11. VSTS is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 20.34 indicates a rather expensive valuation of VSTS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSTS indicates a somewhat cheap valuation: VSTS is cheaper than 63.41% of the companies listed in the same industry.
VSTS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.79 | ||
| Fwd PE | 20.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSTS is valued a bit cheaper than 67.07% of the companies in the same industry.
98.78% of the companies in the same industry are more expensive than VSTS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.19 | ||
| EV/EBITDA | 9.21 |
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.
VSTS's earnings are expected to grow with 63.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y59.42%
EPS Next 3Y63.89%
5. Dividend
5.1 Amount
VSTS has a Yearly Dividend Yield of 2.16%.
VSTS's Dividend Yield is rather good when compared to the industry average which is at 2.48. VSTS pays more dividend than 84.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, VSTS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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
The earnings of VSTS are negative and hence is the payout ratio. VSTS will probably not be able to sustain this dividend level.
DP-61.47%
EPS Next 2Y59.42%
EPS Next 3Y63.89%
6.23
-0.49 (-7.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners107.91%
Inst Owner Change-4.17%
Ins Owners1.47%
Ins Owner Change40.49%
Market Cap821.36M
Revenue(TTM)N/A
Net Income(TTM)-29.97M
Analysts52.31
Price Target5.8 (-6.9%)
Short Float %10.8%
Short Ratio6.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP-61.47%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-67.23%
Min EPS beat(2)-134.35%
Max EPS beat(2)-0.12%
EPS beat(4)1
Avg EPS beat(4)-35.8%
Min EPS beat(4)-134.35%
Max EPS beat(4)10.43%
EPS beat(8)3
Avg EPS beat(8)-9.16%
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)0
Avg Revenue beat(2)-3.74%
Min Revenue beat(2)-5.48%
Max Revenue beat(2)-1.99%
Revenue beat(4)0
Avg Revenue beat(4)-3.38%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)-1.99%
Revenue beat(8)0
Avg Revenue beat(8)-2.88%
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)0%
PT rev (3m)-31.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.2%
EPS NY rev (1m)0%
EPS NY rev (3m)8.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.79 | ||
| Fwd PE | 20.34 | ||
| P/S | 0.3 | ||
| P/FCF | 3.19 | ||
| P/OCF | 2.5 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.21 |
EPS(TTM)0.19
EY3.05%
EPS(NY)0.31
Fwd EY4.92%
FCF(TTM)1.95
FCFY31.37%
OCF(TTM)2.49
OCFY40.04%
SpS20.53
BVpS6.69
TBVpS-2.1
PEG (NY)0.54
PEG (5Y)N/A
Graham Number5.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.03% | ||
| ROE | -3.4% | ||
| ROCE | 3.77% | ||
| ROIC | 2.72% | ||
| ROICexc | 2.75% | ||
| ROICexgc | 5.24% | ||
| OM | 3.43% | ||
| PM (TTM) | N/A | ||
| GM | 27.44% | ||
| FCFM | 9.52% |
ROA(3y)4%
ROA(5y)N/A
ROE(3y)10.89%
ROE(5y)N/A
ROIC(3y)5.26%
ROIC(5y)N/A
ROICexc(3y)5.32%
ROICexc(5y)N/A
ROICexgc(3y)9.81%
ROICexgc(5y)N/A
ROCE(3y)7.28%
ROCE(5y)N/A
ROICexgc growth 3Y24.51%
ROICexgc growth 5YN/A
ROICexc growth 3Y23.06%
ROICexc growth 5YN/A
OM growth 3Y14.13%
OM growth 5YN/A
PM growth 3Y-37.25%
PM growth 5YN/A
GM growth 3Y1.12%
GM growth 5YN/A
F-Score4
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 5.08 | ||
| Debt/EBITDA | 5.41 | ||
| Cap/Depr | 49.82% | ||
| Cap/Sales | 2.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 1.44 |
F-Score4
WACC7.11%
ROIC/WACC0.38
Cap/Depr(3y)56.65%
Cap/Depr(5y)55.98%
Cap/Sales(3y)2.8%
Cap/Sales(5y)2.87%
Profit Quality(3y)689.32%
Profit Quality(5y)486.14%
High Growth Momentum
Growth
EPS 1Y (TTM)-69.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.73%
EPS Next Y61.21%
EPS Next 2Y59.42%
EPS Next 3Y63.89%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.05%
Revenue Next Year0.29%
Revenue Next 2Y1.67%
Revenue Next 3Y2.11%
Revenue Next 5YN/A
EBIT growth 1Y-50.75%
EBIT growth 3Y19.3%
EBIT growth 5YN/A
EBIT Next Year29.63%
EBIT Next 3Y14.33%
EBIT Next 5Y14.99%
FCF growth 1Y99.59%
FCF growth 3Y36.58%
FCF growth 5YN/A
OCF growth 1Y55.36%
OCF growth 3Y24.53%
OCF growth 5YN/A
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 4 / 10.
Can you provide the PE and PB ratios for VSTS stock?
The Price/Earnings (PE) ratio for VESTIS CORP (VSTS) is 32.79 and the Price/Book (PB) ratio is 0.93.
Is the dividend of VESTIS CORP sustainable?
The dividend rating of VESTIS CORP (VSTS) is 3 / 10 and the dividend payout ratio is -61.47%.