VESTIS CORP (VSTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VSTS - US29430C1027 - Common Stock
7 USD
+0.57 (+8.86%)
7.05 USD
+0.05 (+0.71%)
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. Both the profitability and financial health of VSTS have multiple concerns. VSTS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year VSTS was profitable.
VSTS had a positive operating cash flow in the past year.
Of the past 5 years VSTS 4 years were profitable.
Each year in the past 5 years VSTS had a positive operating cash flow.
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.
The Return On Invested Capital of VSTS (2.18%) is comparable to the rest of the industry.
VSTS had an Average Return On Invested Capital over the past 3 years of 3.96%. This is significantly below the industry average of 10.60%.
| 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 48.75% 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.
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%
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 more shares outstanding
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.
The Altman-Z score of VSTS (1.44) is worse than 67.50% of its industry peers.
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 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.
With a Debt to Equity ratio value of 1.49, VSTS is not doing good in the industry: 76.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 229.06 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.29
WACC7.59%
2.3 Liquidity
VSTS has a Current Ratio of 2.08. This indicates that VSTS is financially healthy and has no problem in meeting its short term obligations.
VSTS's Current ratio of 2.08 is fine compared to the rest of the industry. VSTS outperforms 72.50% of its industry peers.
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 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.64 |
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.
The Revenue has been growing slightly by 1.31% on average over the past years.
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
VSTS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 57.30% yearly.
The Revenue is expected to grow by 1.18% on average over the next years.
EPS Next Y76.53%
EPS Next 2Y61.75%
EPS Next 3Y57.3%
EPS Next 5YN/A
Revenue Next Year-2.17%
Revenue Next 2Y-0.24%
Revenue Next 3Y1.18%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.84, which means the current valuation is very expensive for VSTS.
VSTS's Price/Earnings is on the same level as the industry average.
VSTS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.17.
The Price/Forward Earnings ratio is 20.87, 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 72.50% 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 (23.79), we can say VSTS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.84 | ||
| Fwd PE | 20.87 |
4.2 Price Multiples
VSTS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VSTS is cheaper than 68.75% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VSTS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 160.01 | ||
| EV/EBITDA | 9.46 |
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 57.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y61.75%
EPS Next 3Y57.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, VSTS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.90, VSTS pays a better dividend. On top of this VSTS pays more dividend than 86.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, VSTS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
VSTS has been paying a dividend for less than 5 years, so it still needs to build a track record.
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 2Y61.75%
EPS Next 3Y57.3%
7
+0.57 (+8.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.21%
Inst Owner Change0%
Ins Owners1.71%
Ins Owner Change30.75%
Market Cap923.09M
Revenue(TTM)2.73B
Net Income(TTM)-40.22M
Analysts52.31
Price Target6.32 (-9.71%)
Short Float %10.03%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP-34.36%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-24.18%
Min EPS beat(2)-48.25%
Max EPS beat(2)-0.12%
EPS beat(4)1
Avg EPS beat(4)-43.07%
Min EPS beat(4)-134.35%
Max EPS beat(4)10.43%
EPS beat(8)2
Avg EPS beat(8)-23.49%
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)1
Avg Revenue beat(2)0.46%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)2.91%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)2.91%
Revenue beat(8)1
Avg Revenue beat(8)-2.31%
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)9.09%
PT rev (3m)9.09%
EPS NQ rev (1m)-9.33%
EPS NQ rev (3m)-9.54%
EPS NY rev (1m)9.5%
EPS NY rev (3m)13.78%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-2.45%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.84 | ||
| Fwd PE | 20.87 | ||
| P/S | 0.34 | ||
| P/FCF | 160.01 | ||
| P/OCF | 14.37 | ||
| P/B | 1.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.46 |
EPS(TTM)0.19
EY2.71%
EPS(NY)0.34
Fwd EY4.79%
FCF(TTM)0.04
FCFY0.62%
OCF(TTM)0.49
OCFY6.96%
SpS20.74
BVpS6.56
TBVpS-2.16
PEG (NY)0.48
PEG (5Y)N/A
Graham Number5.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.38% | ||
| ROE | -4.65% | ||
| ROCE | 3.33% | ||
| ROIC | 2.18% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 4.13% | ||
| OM | 3.04% | ||
| PM (TTM) | N/A | ||
| GM | 26.5% | ||
| FCFM | 0.21% |
ROA(3y)2.03%
ROA(5y)2.6%
ROE(3y)7.32%
ROE(5y)6.24%
ROIC(3y)3.96%
ROIC(5y)3.76%
ROICexc(3y)4.01%
ROICexc(5y)3.8%
ROICexgc(3y)7.43%
ROICexgc(5y)7.03%
ROCE(3y)6.04%
ROCE(5y)5.74%
ROICexgc growth 3Y-21.4%
ROICexgc growth 5YN/A
ROICexc growth 3Y-22.01%
ROICexc growth 5YN/A
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%
F-Score3
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 229.06 | ||
| Debt/EBITDA | 5.69 | ||
| Cap/Depr | 40.88% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 0.89 | ||
| Cash Conversion | 28.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 1.44 |
F-Score3
WACC7.59%
ROIC/WACC0.29
Cap/Depr(3y)51.32%
Cap/Depr(5y)55.68%
Cap/Sales(3y)2.57%
Cap/Sales(5y)2.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-69.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.73%
EPS Next Y76.53%
EPS Next 2Y61.75%
EPS Next 3Y57.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.53%
Revenue growth 3Y0.59%
Revenue growth 5Y1.31%
Sales Q2Q%4.05%
Revenue Next Year-2.17%
Revenue Next 2Y-0.24%
Revenue Next 3Y1.18%
Revenue Next 5YN/A
EBIT growth 1Y-49.05%
EBIT growth 3Y-24.37%
EBIT growth 5Y-11.1%
EBIT Next Year131.76%
EBIT Next 3Y40.76%
EBIT Next 5YN/A
FCF growth 1Y-98.53%
FCF growth 3Y-66.71%
FCF growth 5Y-49.36%
OCF growth 1Y-86.39%
OCF growth 3Y-34.9%
OCF growth 5Y-22.61%
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 76.53% in the next year.
Can you provide the dividend sustainability for VSTS stock?
The dividend rating of VESTIS CORP (VSTS) is 3 / 10 and the dividend payout ratio is -34.36%.