VSTS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. VSTS has a bad profitability rating. Also its financial health evaluation is rather negative. VSTS is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

VSTS had positive earnings in the past year.
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

With a Return On Assets value of -1.38%, VSTS perfoms like the industry average, outperforming 41.25% of the companies in the same industry.
With a Return On Equity value of -4.65%, VSTS perfoms like the industry average, outperforming 41.25% of the companies in the same industry.
VSTS has a Return On Invested Capital of 2.18%. This is comparable to the rest of the industry: VSTS outperforms 45.00% 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 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

Looking at the Operating Margin, with a value of 3.04%, VSTS is in line with its industry, outperforming 47.50% of the companies in the same industry.
In the last couple of years the Operating Margin of VSTS has declined.
VSTS has a Gross Margin (26.50%) which is in line with 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 1.44. 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 1.44, VSTS is not doing good in the industry: 66.25% of the companies in the same industry are doing better.
VSTS has a debt to FCF ratio of 229.06. This is a negative value and a sign of low solvency as VSTS would need 229.06 years to pay back of all of its debts.
VSTS has a Debt to FCF ratio (229.06) which is in line with its industry peers.
VSTS has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
VSTS's Debt to Equity ratio of 1.49 is on the low side compared to the rest of the industry. VSTS is outperformed by 77.50% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.49
Debt/FCF	229.06
Altman-Z	1.44

ROIC/WACC0.28

WACC7.67%

2.3 Liquidity

A Current Ratio of 2.08 indicates that VSTS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.08, VSTS is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that VSTS should not have too much problems paying its short term obligations.
VSTS has a Quick ratio of 1.64. This is in the better half of the industry: VSTS outperforms 68.75% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.08
Quick Ratio	1.64

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for VSTS have decreased strongly by -69.35% in the last year.
The Revenue has decreased by -2.53% in the past 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
VSTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.08% yearly.

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

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 33.26, which means the current valuation is very expensive for VSTS.
VSTS's Price/Earnings is on the same level as the industry average.
VSTS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.15, VSTS is valued on the expensive side.
VSTS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VSTS is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VSTS to the average of the S&P500 Index (25.83), we can say VSTS is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	33.26
Fwd PE	19.15

4.2 Price Multiples

VSTS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VSTS is cheaper than 71.25% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VSTS.

		Industry Rank	Sector Rank
P/FCF	144.47
EV/EBITDA	9.4

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)0.45

PEG (5Y)N/A

EPS Next 2Y57.9%

EPS Next 3Y52.84%

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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.
Compared to an average S&P500 Dividend Yield of 1.82, VSTS's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.51%

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 2Y57.9%

EPS Next 3Y52.84%

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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 5 / 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%.