VESTIS CORP (VSTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSTS - US29430C1027 - Common Stock
6.96 USD
+0.06 (+0.87%)
6.8999 USD
-0.06 (-0.86%)
Taking everything into account, VSTS scores 3 out of 10 in our fundamental rating. 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.
VSTS had a positive operating cash flow in the past year.
Of the past 5 years VSTS 4 years were profitable.
In the past 5 years VSTS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VSTS (-1.38%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -4.65%, VSTS is in line with its industry, outperforming 40.24% of the companies in the same industry.
The Return On Invested Capital of VSTS (2.18%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VSTS is significantly below the industry average of 10.13%.
| 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
Looking at the Operating Margin, with a value of 3.04%, VSTS is in line with its industry, outperforming 46.34% 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.
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
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 has been increased compared to 1 year ago.
VSTS has a worse debt/assets ratio than last year.
2.2 Solvency
VSTS has an Altman-Z score of 1.46. This is a bad value and indicates that VSTS is not financially healthy and even has some risk of bankruptcy.
VSTS's Altman-Z score of 1.46 is on the low side compared to the rest of the industry. VSTS is outperformed by 64.63% 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.
Looking at the Debt to FCF ratio, with a value of 229.06, VSTS is in line with its industry, outperforming 45.12% of the companies in the same industry.
A Debt/Equity ratio of 1.49 is on the high side and indicates that VSTS has dependencies on debt financing.
VSTS has a Debt to Equity ratio of 1.49. This is in the lower half of the industry: VSTS underperforms 76.83% 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.
The Current ratio of VSTS (2.08) is better than 71.95% of its industry peers.
A Quick Ratio of 1.64 indicates that VSTS should not have too much problems paying its short term obligations.
VSTS has a better Quick ratio (1.64) than 67.07% 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.
VSTS shows a decrease in Revenue. In the last year, the revenue decreased by -2.53%.
Measured over the past years, VSTS shows a small growth in Revenue. The Revenue has been growing by 1.31% on average per year.
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 63.89% yearly.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.63, which means the current valuation is very expensive for VSTS.
The rest of the industry has a similar Price/Earnings ratio as VSTS.
Compared to an average S&P500 Price/Earnings ratio of 26.43, VSTS is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 22.72, the valuation of VSTS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, VSTS is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VSTS to the average of the S&P500 Index (23.66), we can say VSTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.63 | ||
| Fwd PE | 22.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSTS is valued a bit cheaper than 65.85% of the companies in the same industry.
VSTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 159.09 | ||
| EV/EBITDA | 9.74 |
4.3 Compensation for Growth
The 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 63.89% in the coming years.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y59.42%
EPS Next 3Y63.89%
5. Dividend
5.1 Amount
VSTS has a Yearly Dividend Yield of 2.13%.
Compared to an average industry Dividend Yield of 0.93, VSTS pays a better dividend. On top of this VSTS pays more dividend than 85.37% of the companies listed in the same industry.
VSTS's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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-34.36%
EPS Next 2Y59.42%
EPS Next 3Y63.89%
6.96
+0.06 (+0.87%)
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 Change31.75%
Market Cap917.82M
Revenue(TTM)2.73B
Net Income(TTM)-40.22M
Analysts52.31
Price Target6.32 (-9.2%)
Short Float %12.13%
Short Ratio6.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)-0.24%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.63 | ||
| Fwd PE | 22.72 | ||
| P/S | 0.34 | ||
| P/FCF | 159.09 | ||
| P/OCF | 14.29 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.74 |
EPS(TTM)0.19
EY2.73%
EPS(NY)0.31
Fwd EY4.4%
FCF(TTM)0.04
FCFY0.63%
OCF(TTM)0.49
OCFY7%
SpS20.74
BVpS6.56
TBVpS-2.16
PEG (NY)0.6
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 | 1.46 |
F-Score3
WACC7.69%
ROIC/WACC0.28
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 Y61.21%
EPS Next 2Y59.42%
EPS Next 3Y63.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y0.59%
Revenue growth 5Y1.31%
Sales Q2Q%4.05%
Revenue Next Year0.29%
Revenue Next 2Y1.67%
Revenue Next 3Y2.11%
Revenue Next 5YN/A
EBIT growth 1Y-49.05%
EBIT growth 3Y-24.37%
EBIT growth 5Y-11.1%
EBIT Next Year130.57%
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 36.63 and the Price/Book (PB) ratio is 1.06.
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%.