VESTIS CORP (VSTS)
US29430C1027 - Common Stock
Taking everything into account, VSTS scores 5 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 correct valuation and a medium growth rate.
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.
1.2 Ratios
The Return On Assets of VSTS (5.16%) is better than 75.90% of its industry peers.
VSTS has a better Return On Equity (17.89%) than 85.54% of its industry peers.
The Return On Invested Capital of VSTS (6.10%) is better than 60.24% 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 9.98%.
The last Return On Invested Capital (6.10%) for VSTS is above the 3 year average (4.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 17.89% | ||
| ROIC | 6.1% |
ROA(3y)4.55%
ROA(5y)N/A
ROE(3y)11.18%
ROE(5y)N/A
ROIC(3y)4.8%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.66%, VSTS is doing good in the industry, outperforming 74.70% of the companies in the same industry.
VSTS's Profit Margin has improved in the last couple of years.
VSTS's Operating Margin of 7.59% is fine compared to the rest of the industry. VSTS outperforms 62.65% of its industry peers.
VSTS's Operating Margin has improved in the last couple of years.
VSTS has a Gross Margin (30.44%) 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 | 7.59% | ||
| PM (TTM) | 5.66% | ||
| GM | 30.44% |
OM growth 3Y11.1%
OM growth 5YN/A
PM growth 3Y20.09%
PM growth 5YN/A
GM growth 3Y1.21%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VSTS is destroying value.
VSTS has more shares outstanding than it did 1 year ago.
The debt/assets ratio for VSTS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.81, we must say that VSTS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VSTS (1.81) is worse than 60.24% of its industry peers.
The Debt to FCF ratio of VSTS is 6.48, which is on the high side as it means it would take VSTS, 6.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.48, VSTS is in the better half of the industry, outperforming 61.45% of the companies in the same industry.
VSTS has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
VSTS's Debt to Equity ratio of 1.69 is on the low side compared to the rest of the industry. VSTS is outperformed by 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.7
WACC8.7%
2.3 Liquidity
VSTS has a Current Ratio of 2.51. This indicates that VSTS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.51, VSTS belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
A Quick Ratio of 2.16 indicates that VSTS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.16, VSTS belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.17% over the past year.
Measured over the past years, VSTS shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.03% on average per year.
The Revenue has been growing slightly by 5.15% in the past year.
VSTS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.31% yearly.
EPS 1Y (TTM)50.17%
EPS 3Y24.03%
EPS 5YN/A
EPS Q2Q%-91.57%
Revenue 1Y (TTM)5.15%
Revenue growth 3Y3.31%
Revenue growth 5YN/A
Sales Q2Q%-49.63%
3.2 Future
VSTS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.65% yearly.
Based on estimates for the next years, VSTS will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y-48.11%
EPS Next 2Y-15.83%
EPS Next 3Y-3.9%
EPS Next 5Y17.65%
Revenue Next Year-0.56%
Revenue Next 2Y0.95%
Revenue Next 3Y1.93%
Revenue Next 5Y4.18%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.10, which indicates a very decent valuation of VSTS.
Compared to the rest of the industry, the Price/Earnings ratio of VSTS indicates a rather cheap valuation: VSTS is cheaper than 95.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.05, VSTS is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.89, VSTS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VSTS indicates a somewhat cheap valuation: VSTS is cheaper than 74.70% 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 (20.07), we can say VSTS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VSTS is valued a bit cheaper than the industry average as 72.29% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VSTS indicates a rather cheap valuation: VSTS is cheaper than 91.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.74 | ||
| EV/EBITDA | 8.77 |
4.3 Compensation for Growth
The decent profitability rating of VSTS may justify a higher PE ratio.
A cheap valuation may be justified as VSTS's earnings are expected to decrease with -3.90% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.83%
EPS Next 3Y-3.9%
5. Dividend
5.1 Amount
VSTS has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
The stock price of VSTS dropped by -34.15% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
VSTS's Dividend Yield is a higher than the industry average which is at 2.36.
Compared to an average S&P500 Dividend Yield of 2.37, VSTS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
VSTS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y-15.83%
EPS Next 3Y-3.9%
VESTIS CORP
NYSE:VSTS (5/31/2024, 7:12:53 PM)
After market: 12.32 0 (0%)12.32
+0.2 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 14.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 17.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.59% | ||
| PM (TTM) | 5.66% | ||
| GM | 30.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)50.17%
EPS 3Y24.03%
EPS 5Y
EPS Q2Q%
EPS Next Y-48.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.15%
Revenue growth 3Y3.31%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y