VESTIS CORP (VSTS) Stock Fundamental Analysis
NYSE:VSTS - New York Stock Exchange, Inc. - US29430C1027 - Common Stock
VSTS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 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 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.
VSTS had positive earnings in each of the past 5 years.
VSTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VSTS has a Return On Assets (0.72%) which is comparable to the rest of the industry.
VSTS has a Return On Equity of 2.32%. This is comparable to the rest of the industry: VSTS outperforms 51.22% of its industry peers.
With a Return On Invested Capital value of 4.76%, VSTS perfoms like the industry average, outperforming 45.12% of the companies in the same industry.
VSTS had an Average Return On Invested Capital over the past 3 years of 5.26%. This is below the industry average of 10.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 2.32% | ||
| ROIC | 4.76% |
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
Looking at the Profit Margin, with a value of 0.75%, VSTS is in line with its industry, outperforming 45.12% of the companies in the same industry.
In the last couple of years the Profit Margin of VSTS has declined.
VSTS's Operating Margin of 5.81% is in line compared to the rest of the industry. VSTS outperforms 48.78% of its industry peers.
VSTS's Operating Margin has improved in the last couple of years.
VSTS has a Gross Margin (29.08%) which 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 | 5.81% | ||
| PM (TTM) | 0.75% | ||
| GM | 29.08% |
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.
VSTS has a better debt/assets ratio than last year.
2.2 Solvency
VSTS has an Altman-Z score of 1.91. This is not the best score and indicates that VSTS is in the grey zone with still only limited risk for bankruptcy at the moment.
VSTS's Altman-Z score of 1.91 is in line compared to the rest of the industry. VSTS outperforms 42.68% of its industry peers.
VSTS has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as VSTS would need 3.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.29, VSTS is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
VSTS has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
VSTS has a Debt to Equity ratio of 1.40. This is in the lower half of the industry: VSTS underperforms 76.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.59
WACC8.09%
2.3 Liquidity
A Current Ratio of 1.73 indicates that VSTS should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.73, VSTS is doing good in the industry, outperforming 64.63% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that VSTS should not have too much problems paying its short term obligations.
VSTS has a Quick ratio of 1.36. This is comparable to the rest of the industry: VSTS outperforms 53.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for VSTS have decreased strongly by -90.19% in the last year.
The earnings per share for VSTS have been decreasing by -34.64% on average. This is quite bad
The Revenue has decreased by -0.69% in the past year.
VSTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
EPS 1Y (TTM)-90.19%
EPS 3Y-34.64%
EPS 5YN/A
EPS Q2Q%-80%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-4.42%
3.2 Future
Based on estimates for the next years, VSTS will show a very strong growth in Earnings Per Share. The EPS will grow by 23.41% on average per year.
The Revenue is expected to grow by 3.42% on average over the next years.
EPS Next Y9.04%
EPS Next 2Y17.85%
EPS Next 3Y23.01%
EPS Next 5Y23.41%
Revenue Next Year0.49%
Revenue Next 2Y1.73%
Revenue Next 3Y2.58%
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
Based on the Price/Earnings ratio of 26.15, the valuation of VSTS can be described as expensive.
Based on the Price/Earnings ratio, VSTS is valued a bit cheaper than 62.20% of the companies in the same industry.
When comparing the Price/Earnings ratio of VSTS to the average of the S&P500 Index (27.94), we can say VSTS is valued inline with the index average.
The Price/Forward Earnings ratio is 23.98, which indicates a rather expensive current 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 65.85% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VSTS to the average of the S&P500 Index (24.11), we can say VSTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 23.98 |
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 63.41% of the companies listed in the same industry.
VSTS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VSTS is cheaper than 96.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.43 | ||
| EV/EBITDA | 11.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VSTS does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as VSTS's earnings are expected to grow with 23.01% in the coming years.
PEG (NY)2.89
PEG (5Y)N/A
EPS Next 2Y17.85%
EPS Next 3Y23.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, VSTS is not a good candidate for dividend investing.
VSTS's Dividend Yield is a higher than the industry average which is at 2.09.
With a Dividend Yield of 0.85, VSTS pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
VSTS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
65.81% of the earnings are spent on dividend by VSTS. This is not a sustainable payout ratio.
DP65.81%
EPS Next 2Y17.85%
EPS Next 3Y23.01%
VESTIS CORP
NYSE:VSTS (1/17/2025, 8:04:00 PM)
After market: 16.21 0 (0%)16.21
-0.24 (-1.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.19%
Inst Owner Change-0.64%
Ins Owners0.62%
Ins Owner Change6.59%
Market Cap2.13B
Analysts75
Price Target16.62 (2.53%)
Short Float %5.4%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP65.81%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.39%
Min EPS beat(2)-19.15%
Max EPS beat(2)45.92%
EPS beat(4)1
Avg EPS beat(4)-3.91%
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)-2.01%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
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)13.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-45%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 23.98 | ||
| P/S | 0.76 | ||
| P/FCF | 5.43 | ||
| P/OCF | 4.52 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.18 |
EPS(TTM)0.62
EY3.82%
EPS(NY)0.68
Fwd EY4.17%
FCF(TTM)2.98
FCFY18.41%
OCF(TTM)3.58
OCFY22.11%
SpS21.31
BVpS6.86
TBVpS-2.08
PEG (NY)2.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 2.32% | ||
| ROCE | 6.59% | ||
| ROIC | 4.76% | ||
| ROICexc | 4.82% | ||
| ROICexgc | 9.29% | ||
| OM | 5.81% | ||
| PM (TTM) | 0.75% | ||
| GM | 29.08% | ||
| FCFM | 14% |
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-Score5
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 4.16 | ||
| Cap/Depr | 56.05% | ||
| Cap/Sales | 2.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 155.23% | ||
| Profit Quality | 1873.55% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 1.91 |
F-Score5
WACC8.09%
ROIC/WACC0.59
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)-90.19%
EPS 3Y-34.64%
EPS 5YN/A
EPS Q2Q%-80%
EPS Next Y9.04%
EPS Next 2Y17.85%
EPS Next 3Y23.01%
EPS Next 5Y23.41%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-4.42%
Revenue Next Year0.49%
Revenue Next 2Y1.73%
Revenue Next 3Y2.58%
Revenue Next 5Y3.42%
EBIT growth 1Y-27.85%
EBIT growth 3Y19.3%
EBIT growth 5YN/A
EBIT Next Year72.84%
EBIT Next 3Y26.44%
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