VESTIS CORP (VSTS) Stock Fundamental Analysis
NYSE:VSTS - New York Stock Exchange, Inc. - US29430C1027 - Common Stock - Currency: USD
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 only an average score on both its financial health and profitability. VSTS is valued correctly, but it does not seem to be growing.
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.
In the past 5 years VSTS has always been profitable.
VSTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VSTS has a Return On Assets (0.33%) which is in line with its industry peers.
VSTS's Return On Equity of 1.06% is in line compared to the rest of the industry. VSTS outperforms 48.19% of its industry peers.
VSTS has a Return On Invested Capital of 4.42%. This is comparable to the rest of the industry: VSTS outperforms 50.60% 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 11.34%.
| 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
VSTS has a Profit Margin (0.34%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VSTS has declined.
VSTS has a Operating Margin (5.41%) which is comparable to the rest of the industry.
VSTS's Operating Margin has improved in the last couple of years.
VSTS's Gross Margin of 28.46% is in line compared to the rest of the industry. VSTS outperforms 45.78% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VSTS 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
Based on the Altman-Z score of 1.52, we must say that VSTS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VSTS (1.52) is worse than 68.67% of its industry peers.
The Debt to FCF ratio of VSTS is 3.68, which is a good value as it means it would take VSTS, 3.68 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.68, VSTS is doing good in the industry, outperforming 72.29% of the companies in the same industry.
VSTS has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
VSTS's Debt to Equity ratio of 1.39 is on the low side compared to the rest of the industry. VSTS is outperformed by 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.64
WACC6.92%
2.3 Liquidity
A Current Ratio of 1.80 indicates that VSTS should not have too much problems paying its short term obligations.
VSTS's Current ratio of 1.80 is fine compared to the rest of the industry. VSTS outperforms 63.86% 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.
VSTS has a Quick ratio of 1.43. This is comparable to the rest of the industry: VSTS outperforms 55.42% of its industry peers.
| 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 -90.19%.
Measured over the past years, VSTS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -34.65% on average per year.
Looking at the last year, VSTS shows a decrease in Revenue. The Revenue has decreased by -0.69% in the last year.
Measured over the past years, VSTS shows a small growth in Revenue. The Revenue has been growing by 4.53% on average per year.
EPS 1Y (TTM)-90.19%
EPS 3Y-34.65%
EPS 5YN/A
EPS Q2Q%-138.46%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-5.67%
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 24.06% on average per year.
The Revenue is expected to grow by 3.32% on average over the next years.
EPS Next Y-45.62%
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
EPS Next 5Y24.06%
Revenue Next Year-3.24%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.4%
Revenue Next 5Y3.32%
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
A Price/Earnings ratio of 17.11 indicates a rather expensive valuation of VSTS.
VSTS's Price/Earnings ratio is a bit cheaper when compared to the industry. VSTS is cheaper than 69.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. VSTS is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.82, which indicates a correct valuation of VSTS.
Based on the Price/Forward Earnings ratio, VSTS is valued a bit cheaper than 67.47% of the companies in the same industry.
VSTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
VSTS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VSTS is cheaper than 79.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VSTS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.34 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
5. Dividend
5.1 Amount
VSTS has a Yearly Dividend Yield of 2.26%.
The stock price of VSTS dropped by -48.02% 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 rather good when compared to the industry average which is at 2.56. VSTS pays more dividend than 84.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, VSTS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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
155.51% of the earnings are spent on dividend by VSTS. This is not a sustainable payout ratio.
DP155.51%
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
6.16
-0.04 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.14%
Inst Owner Change-2.92%
Ins Owners0.59%
Ins Owner Change19.68%
Market Cap811.76M
Analysts73.33
Price Target15.25 (147.56%)
Short Float %5.63%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-2.45%
PT rev (3m)-8.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.92%
EPS NY rev (1m)-52.51%
EPS NY rev (3m)-52.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-3.58%
Revenue NY rev (3m)-3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 16.82 | ||
| P/S | 0.29 | ||
| P/FCF | 2.34 | ||
| P/OCF | 1.91 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.11 |
EPS(TTM)0.36
EY5.84%
EPS(NY)0.37
Fwd EY5.94%
FCF(TTM)2.64
FCFY42.79%
OCF(TTM)3.22
OCFY52.24%
SpS21.03
BVpS6.83
TBVpS-2.04
PEG (NY)N/A
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 | 1.52 |
F-Score4
WACC6.92%
ROIC/WACC0.64
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-34.65%
EPS 5YN/A
EPS Q2Q%-138.46%
EPS Next Y-45.62%
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
EPS Next 5Y24.06%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-5.67%
Revenue Next Year-3.24%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.4%
Revenue Next 5Y3.32%
EBIT growth 1Y-45.4%
EBIT growth 3Y19.3%
EBIT growth 5YN/A
EBIT Next Year30.02%
EBIT Next 3Y14.71%
EBIT Next 5Y23.39%
FCF growth 1Y119.36%
FCF growth 3Y36.58%
FCF growth 5YN/A
OCF growth 1Y83.59%
OCF growth 3Y24.53%
OCF growth 5YN/A