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 84 industry peers in the Commercial Services & Supplies industry. VSTS has an average financial health and profitability rating. VSTS has a valuation in line with the averages, 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.
In the past 5 years VSTS has always been profitable.
Each year in the past 5 years VSTS had a positive operating cash flow.
1.2 Ratios
VSTS's Return On Assets of 0.33% is in line compared to the rest of the industry. VSTS outperforms 41.46% of its industry peers.
VSTS has a Return On Equity of 1.06%. This is comparable to the rest of the industry: VSTS outperforms 46.34% of its industry peers.
VSTS's Return On Invested Capital of 4.42% is in line compared to the rest of the industry. VSTS outperforms 45.12% of its industry peers.
VSTS had an Average Return On Invested Capital over the past 3 years of 5.26%. This is below the industry average of 10.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.06% | ||
| ROIC | 4.42% |
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
The Profit Margin of VSTS (0.34%) is comparable to the rest of the industry.
VSTS's Profit Margin has declined in the last couple of years.
The Operating Margin of VSTS (5.41%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VSTS has grown nicely.
VSTS has a Gross Margin of 28.46%. This is comparable to the rest of the industry: VSTS outperforms 43.90% of its industry peers.
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 | 5.41% | ||
| PM (TTM) | 0.34% | ||
| GM | 28.46% |
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
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 about the same amount of shares outstanding.
The debt/assets ratio for VSTS has been reduced compared to a year ago.
2.2 Solvency
VSTS has an Altman-Z score of 1.81. This is a bad value and indicates that VSTS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.81, VSTS perfoms like the industry average, outperforming 45.12% of the companies in the same industry.
VSTS has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as VSTS would need 3.68 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.68, VSTS is doing good in the industry, outperforming 69.51% of the companies in the same industry.
A Debt/Equity ratio of 1.39 is on the high side and indicates that VSTS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.39, VSTS is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.62
WACC7.12%
2.3 Liquidity
A Current Ratio of 1.80 indicates that VSTS should not have too much problems paying its short term obligations.
The Current ratio of VSTS (1.80) is better than 67.07% of its industry peers.
VSTS has a Quick Ratio of 1.43. 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 1.43, VSTS is in line with its industry, outperforming 59.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
VSTS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -95.77%.
VSTS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -34.64% yearly.
VSTS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.78%.
The Revenue has been growing slightly by 4.53% on average over the past years.
EPS 1Y (TTM)-95.77%
EPS 3Y-34.64%
EPS 5YN/A
EPS Q2Q%-36.36%
Revenue 1Y (TTM)-21.78%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-4.76%
3.2 Future
The Earnings Per Share is expected to grow by 23.41% 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 3.42% on average per year.
EPS Next Y14.57%
EPS Next 2Y20.21%
EPS Next 3Y22.47%
EPS Next 5Y23.41%
Revenue Next Year0.24%
Revenue Next 2Y0.45%
Revenue Next 3Y2.49%
Revenue Next 5Y3.42%
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
With a Price/Earnings ratio of 24.15, VSTS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of VSTS is on the same level as its industry peers.
VSTS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
VSTS is valuated correctly with a Price/Forward Earnings ratio of 14.55.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSTS indicates a somewhat cheap valuation: VSTS is cheaper than 74.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, VSTS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VSTS indicates a somewhat cheap valuation: VSTS is cheaper than 67.07% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VSTS is valued cheaply inside the industry as 96.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.95 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
VSTS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as VSTS's earnings are expected to grow with 22.47% in the coming years.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y20.21%
EPS Next 3Y22.47%
5. Dividend
5.1 Amount
VSTS has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
VSTS's Dividend Yield is a higher than the industry average which is at 2.12.
Compared to an average S&P500 Dividend Yield of 2.29, VSTS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
155.51% of the earnings are spent on dividend by VSTS. This is not a sustainable payout ratio.
DP155.51%
EPS Next 2Y20.21%
EPS Next 3Y22.47%
13.04
-0.41 (-3.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.14%
Inst Owner Change9.88%
Ins Owners0.59%
Ins Owner Change13.3%
Market Cap1.72B
Analysts75
Price Target16.65 (27.68%)
Short Float %4.05%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP155.51%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.36%
Min EPS beat(2)-19.15%
Max EPS beat(2)10.43%
EPS beat(4)2
Avg EPS beat(4)-1.2%
Min EPS beat(4)-41.99%
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)-3.03%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-2.69%
Revenue beat(4)0
Avg Revenue beat(4)-2.76%
Min Revenue beat(4)-4.31%
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)0%
PT rev (3m)10.06%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)-28.99%
EPS NY rev (1m)5.08%
EPS NY rev (3m)-7.73%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-3.68%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 14.55 | ||
| P/S | 0.62 | ||
| P/FCF | 4.95 | ||
| P/OCF | 4.05 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.38 |
EPS(TTM)0.54
EY4.14%
EPS(NY)0.9
Fwd EY6.87%
FCF(TTM)2.64
FCFY20.22%
OCF(TTM)3.22
OCFY24.68%
SpS21.04
BVpS6.83
TBVpS-2.04
PEG (NY)1.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.06% | ||
| ROCE | 6.12% | ||
| ROIC | 4.42% | ||
| ROICexc | 4.46% | ||
| ROICexgc | 8.58% | ||
| OM | 5.41% | ||
| PM (TTM) | 0.34% | ||
| GM | 28.46% | ||
| FCFM | 12.53% |
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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 53.87% | ||
| Cap/Sales | 2.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 145.12% | ||
| Profit Quality | 3642.77% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.81 |
F-Score4
WACC7.12%
ROIC/WACC0.62
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)-95.77%
EPS 3Y-34.64%
EPS 5YN/A
EPS Q2Q%-36.36%
EPS Next Y14.57%
EPS Next 2Y20.21%
EPS Next 3Y22.47%
EPS Next 5Y23.41%
Revenue 1Y (TTM)-21.78%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-4.76%
Revenue Next Year0.24%
Revenue Next 2Y0.45%
Revenue Next 3Y2.49%
Revenue Next 5Y3.42%
EBIT growth 1Y-45.4%
EBIT growth 3Y19.3%
EBIT growth 5YN/A
EBIT Next Year72.06%
EBIT Next 3Y25.97%
EBIT Next 5Y23.46%
FCF growth 1Y119.36%
FCF growth 3Y36.58%
FCF growth 5YN/A
OCF growth 1Y83.59%
OCF growth 3Y24.53%
OCF growth 5YN/A