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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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.
VSTS has a Return On Equity (-4.65%) which is comparable to the rest of the 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.
VSTS had an Average Return On Invested Capital over the past 3 years of 3.96%. This is significantly below the industry average of 10.57%.

		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 has a Operating Margin (3.04%) which is comparable to the rest of the 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
VSTS has more shares outstanding than it did 1 year ago.
VSTS has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.45, we must say that VSTS is in the distress zone and has some risk of bankruptcy.
VSTS's Altman-Z score of 1.45 is on the low side compared to the rest of the industry. VSTS is outperformed by 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.
The Debt to FCF ratio of VSTS (229.06) is comparable to the rest of the industry.
VSTS has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
VSTS has a worse Debt to Equity ratio (1.49) than 77.50% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.49
Debt/FCF	229.06
Altman-Z	1.45

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.
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.
A Quick Ratio of 1.64 indicates that VSTS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.64, VSTS is doing good in the industry, outperforming 68.75% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.08
Quick Ratio	1.64

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
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

Based on estimates for the next years, VSTS will show a very strong growth in Earnings Per Share. The EPS will grow by 52.84% on average per year.
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

Based on the Price/Earnings ratio of 35.16, the valuation of VSTS can be described as expensive.
VSTS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of VSTS to the average of the S&P500 Index (28.41), we can say VSTS is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 20.24, the valuation of VSTS can be described as rather expensive.
VSTS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VSTS is cheaper than 73.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.64. VSTS is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	35.16
Fwd PE	20.24

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 71.25% of the companies listed 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	152.69
EV/EBITDA	9.52

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.
VSTS's earnings are expected to grow with 52.84% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.48

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 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 0.83, VSTS pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.54, VSTS pays less dividend than the S&P500 average, which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	0.54%

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 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%.