VESTIS CORP (VSTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSTS - US29430C1027 - Common Stock
6.82 USD
-0.03 (-0.44%)
We assign a fundamental rating of 3 out of 10 to VSTS. VSTS was compared to 80 industry peers in the Commercial Services & Supplies industry. VSTS may be in some trouble as it scores bad on both profitability and health. 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
- VSTS had positive earnings in the past year.
- In the past year VSTS had a positive cash flow from operations.
- Of the past 5 years VSTS 4 years were profitable.
- Each year in the past 5 years VSTS had a positive operating cash flow.
1.2 Ratios
- VSTS has a Return On Assets (-1.38%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of -4.65%, VSTS is in line with its industry, outperforming 41.25% of the companies in the same industry.
- The Return On Invested Capital of VSTS (2.18%) is comparable to the rest of the 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 10.58%.
| 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
- VSTS's Operating Margin of 3.04% is in line compared to the rest of the industry. VSTS outperforms 47.50% of its industry peers.
- VSTS's Operating Margin has declined in the last couple of years.
- VSTS has a Gross Margin (26.50%) which is in line with its industry peers.
- VSTS's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, VSTS has more shares outstanding
- VSTS has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.46, we must say that VSTS is in the distress zone and has some risk of bankruptcy.
- VSTS has a worse Altman-Z score (1.46) than 65.00% 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 of 229.06. This is comparable to the rest of the industry: VSTS outperforms 45.00% of its industry peers.
- VSTS has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of VSTS (1.49) is worse than 77.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 229.06 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.28
WACC7.69%
2.3 Liquidity
- A Current Ratio of 2.08 indicates that VSTS has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.08, VSTS is doing good in the industry, outperforming 72.50% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.64, VSTS is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- VSTS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -69.35%.
- 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
- The Earnings Per Share is expected to grow by 52.84% on average over the next years. This is a very strong growth
- Based on estimates for the next years, VSTS will show a small growth in Revenue. The Revenue will grow by 1.08% on average per year.
EPS Next Y73.71%
EPS Next 2Y57.9%
EPS Next 3Y52.84%
EPS Next 5YN/A
Revenue Next Year-1.77%
Revenue Next 2Y0.04%
Revenue Next 3Y1.08%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 35.89 indicates a quite expensive valuation of VSTS.
- VSTS's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. VSTS is valued slightly more expensive when compared to this.
- The Price/Forward Earnings ratio is 20.66, which indicates a rather expensive current valuation of VSTS.
- 72.50% of the companies in the same industry are more expensive than VSTS, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. VSTS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 20.66 |
4.2 Price Multiples
- 70.00% of the companies in the same industry are more expensive than VSTS, based on the Enterprise Value to EBITDA ratio.
- VSTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 155.89 | ||
| EV/EBITDA | 9.71 |
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 52.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y57.9%
EPS Next 3Y52.84%
5. Dividend
5.1 Amount
- VSTS has a yearly dividend return of 0.51%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.82, VSTS pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.51, VSTS pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
- VSTS has been paying a dividend for less than 5 years, so it still needs to build a track record.
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 2Y57.9%
EPS Next 3Y52.84%
VESTIS CORP / VSTS FAQ
What is the fundamental rating for VSTS stock?
ChartMill assigns a fundamental rating of 3 / 10 to VSTS.
What is the valuation status for VSTS stock?
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.
What is the expected EPS growth for VESTIS CORP (VSTS) stock?
The Earnings per Share (EPS) of VESTIS CORP (VSTS) is expected to grow by 73.71% in the next year.
Can you provide the dividend sustainability for VSTS stock?
The dividend rating of VESTIS CORP (VSTS) is 1 / 10 and the dividend payout ratio is -34.36%.