VESTIS CORP (VSTS) Stock Fundamental Analysis
NYSE:VSTS - New York Stock Exchange, Inc. - US29430C1027 - Common Stock - Currency: USD
Taking everything into account, VSTS scores 4 out of 10 in our fundamental rating. VSTS was compared to 83 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of VSTS while its profitability can be described as average. 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 each of the past 5 years.
Each year in the past 5 years VSTS had a positive operating cash flow.
1.2 Ratios
VSTS has a Return On Assets (-0.84%) which is in line with its industry peers.
VSTS has a Return On Equity of -2.77%. This is comparable to the rest of the industry: VSTS outperforms 40.96% of its industry peers.
VSTS has a Return On Invested Capital of 3.11%. This is comparable to the rest of the industry: VSTS outperforms 44.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VSTS is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.84% | ||
| ROE | -2.77% | ||
| ROIC | 3.11% |
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 (3.88%) which is in line with its industry peers.
VSTS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.94%, VSTS perfoms like the industry average, outperforming 43.37% of the companies in the same 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 | 3.88% | ||
| PM (TTM) | N/A | ||
| GM | 27.94% |
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.
The number of shares outstanding for VSTS remains at a similar level compared to 1 year ago.
VSTS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that VSTS is in the distress zone and has some risk of bankruptcy.
VSTS has a Altman-Z score of 1.43. This is in the lower half of the industry: VSTS underperforms 69.88% of its industry peers.
VSTS has a debt to FCF ratio of 4.72. This is a neutral value as VSTS would need 4.72 years to pay back of all of its debts.
VSTS has a better Debt to FCF ratio (4.72) than 67.47% of its industry peers.
VSTS has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
VSTS has a Debt to Equity ratio of 1.46. This is in the lower half of the industry: VSTS underperforms 73.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 4.72 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.39
WACC7.98%
2.3 Liquidity
VSTS has a Current Ratio of 1.87. This is a normal value and indicates that VSTS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.87, VSTS is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
VSTS has a Quick Ratio of 1.41. This is a normal value and indicates that VSTS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.41, VSTS is in line with its industry, outperforming 53.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for VSTS have decreased strongly by -115.14% in the last year.
VSTS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -34.65% yearly.
Looking at the last year, VSTS shows a decrease in Revenue. The Revenue has decreased by -4.11% in the last year.
The Revenue has been growing slightly by 4.53% on average over the past years.
EPS 1Y (TTM)-115.14%
EPS 3Y-34.65%
EPS 5YN/A
EPS Q2Q%-138.46%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-5.67%
3.2 Future
The Earnings Per Share is expected to grow by 7.77% on average over the next years.
VSTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.82% yearly.
EPS Next Y-45.62%
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
EPS Next 5Y7.77%
Revenue Next Year-3.24%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.4%
Revenue Next 5Y0.82%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VSTS is valuated correctly with a Price/Earnings ratio of 16.89.
Based on the Price/Earnings ratio, VSTS is valued a bit cheaper than 72.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, VSTS is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.60 indicates a correct valuation of VSTS.
Based on the Price/Forward Earnings ratio, VSTS is valued a bit cheaper than 72.29% of the companies in the same industry.
VSTS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 16.6 |
4.2 Price Multiples
78.31% of the companies in the same industry are more expensive than VSTS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VSTS is valued cheaply inside the industry as 98.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.89 | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, VSTS has a reasonable but not impressive dividend return.
The stock price of VSTS dropped by -23.81% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.45, VSTS pays a better dividend. On top of this VSTS pays more dividend than 83.13% of the companies listed in the same industry.
VSTS's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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-94.9%
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
6.08
+0.35 (+6.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners103.86%
Inst Owner Change-2.9%
Ins Owners1.1%
Ins Owner Change40.9%
Market Cap801.22M
Analysts73.33
Price Target8.76 (44.08%)
Short Float %5.63%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP-94.9%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-61.96%
Min EPS beat(2)-134.35%
Max EPS beat(2)10.43%
EPS beat(4)2
Avg EPS beat(4)-24.29%
Min EPS beat(4)-134.35%
Max EPS beat(4)45.92%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-4.08%
Min Revenue beat(2)-5.48%
Max Revenue beat(2)-2.69%
Revenue beat(4)0
Avg Revenue beat(4)-3.05%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)-0.66%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-42.56%
PT rev (3m)-46.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-66.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-52.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 16.6 | ||
| P/S | 0.29 | ||
| P/FCF | 2.89 | ||
| P/OCF | 2.26 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.18 |
EPS(TTM)0.36
EY5.92%
EPS(NY)0.37
Fwd EY6.02%
FCF(TTM)2.1
FCFY34.62%
OCF(TTM)2.69
OCFY44.27%
SpS20.73
BVpS6.65
TBVpS-2.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.84% | ||
| ROE | -2.77% | ||
| ROCE | 4.3% | ||
| ROIC | 3.11% | ||
| ROICexc | 3.15% | ||
| ROICexgc | 6.02% | ||
| OM | 3.88% | ||
| PM (TTM) | N/A | ||
| GM | 27.94% | ||
| FCFM | 10.15% |
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
ROICexcg growth 3Y24.51%
ROICexcg 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 Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 4.72 | ||
| Debt/EBITDA | 5.14 | ||
| Cap/Depr | 54.06% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 142.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 1.43 |
F-Score4
WACC7.98%
ROIC/WACC0.39
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)-115.14%
EPS 3Y-34.65%
EPS 5YN/A
EPS Q2Q%-138.46%
EPS Next Y-45.62%
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
EPS Next 5Y7.77%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-5.67%
Revenue Next Year-3.24%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.4%
Revenue Next 5Y0.82%
EBIT growth 1Y-51.01%
EBIT growth 3Y19.3%
EBIT growth 5YN/A
EBIT Next Year30.02%
EBIT Next 3Y14.71%
EBIT Next 5Y14.93%
FCF growth 1Y112.21%
FCF growth 3Y36.58%
FCF growth 5YN/A
OCF growth 1Y64.82%
OCF growth 3Y24.53%
OCF growth 5YN/A