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. There are concerns on the financial health of VSTS while its profitability can be described as average. VSTS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years VSTS has 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 (-0.84%) which is comparable to the rest of the industry.
The Return On Equity of VSTS (-2.77%) is comparable to the rest of the industry.
VSTS's Return On Invested Capital of 3.11% is in line compared to the rest of the industry. VSTS outperforms 44.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VSTS is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.84% | ||
| ROE | -2.77% | ||
| ROIC | 3.11% |
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
In the last couple of years the Profit Margin of VSTS has declined.
Looking at the Operating Margin, with a value of 3.88%, VSTS is in line with its industry, outperforming 44.58% of the companies in the same industry.
VSTS's Operating Margin has improved in the last couple of years.
VSTS has a Gross Margin (27.94%) 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 | 3.88% | ||
| PM (TTM) | N/A | ||
| GM | 27.94% |
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.
The number of shares outstanding for VSTS remains at a similar level compared to 1 year ago.
VSTS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that VSTS is in the distress zone and has some risk of bankruptcy.
VSTS has a Altman-Z score of 1.43. This is in the lower half of the industry: VSTS underperforms 69.88% of its industry peers.
The Debt to FCF ratio of VSTS is 4.72, which is a neutral value as it means it would take VSTS, 4.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.72, VSTS is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
VSTS has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
VSTS's Debt to Equity ratio of 1.46 is on the low side compared to the rest of the industry. VSTS is outperformed by 73.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 4.72 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.4
WACC7.83%
2.3 Liquidity
VSTS has a Current Ratio of 1.87. This is a normal value and indicates that VSTS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.87, VSTS is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that VSTS should not have too much problems paying its short term obligations.
VSTS's Quick ratio of 1.41 is in line compared to the rest of the industry. VSTS outperforms 53.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for VSTS have decreased strongly by -115.14% in the last year.
VSTS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -34.65% yearly.
Looking at the last year, VSTS shows a decrease in Revenue. The Revenue has decreased by -4.11% 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)-115.14%
EPS 3Y-34.65%
EPS 5YN/A
EPS Q2Q%-138.46%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-5.67%
3.2 Future
The Earnings Per Share is expected to grow by 7.77% on average over the next years.
The Revenue is expected to grow by 0.82% on average over the next years.
EPS Next Y-45.62%
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
EPS Next 5Y7.77%
Revenue Next Year-3.24%
Revenue Next 2Y-1.46%
Revenue Next 3Y0.4%
Revenue Next 5Y0.82%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.89 indicates a correct valuation of VSTS.
VSTS's Price/Earnings ratio is a bit cheaper when compared to the industry. VSTS is cheaper than 71.08% of the companies in the same industry.
VSTS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.62 indicates a correct valuation of VSTS.
Based on the Price/Forward Earnings ratio, VSTS is valued a bit cheaper than the industry average as 71.08% of the companies are valued more expensively.
VSTS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
VSTS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VSTS is cheaper than 74.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VSTS is valued cheaper than 98.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.72 | ||
| EV/EBITDA | 8.23 |
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 2.41%.
The stock price of VSTS dropped by -42.80% 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.
Compared to an average industry Dividend Yield of 2.56, VSTS pays a better dividend. On top of this VSTS pays more dividend than 81.93% of the companies listed in the same industry.
VSTS's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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-94.9%
EPS Next 2Y-23.15%
EPS Next 3Y-0.75%
5.72
-0.1 (-1.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners103.86%
Inst Owner Change-2.9%
Ins Owners1.1%
Ins Owner Change54.99%
Market Cap753.78M
Analysts73.33
Price Target8.76 (53.15%)
Short Float %6.39%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP-94.9%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-61.96%
Min EPS beat(2)-134.35%
Max EPS beat(2)10.43%
EPS beat(4)2
Avg EPS beat(4)-24.29%
Min EPS beat(4)-134.35%
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)-4.08%
Min Revenue beat(2)-5.48%
Max Revenue beat(2)-2.69%
Revenue beat(4)0
Avg Revenue beat(4)-3.05%
Min Revenue beat(4)-5.48%
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)-42.56%
PT rev (3m)-47.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-66.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-52.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 15.62 | ||
| P/S | 0.28 | ||
| P/FCF | 2.72 | ||
| P/OCF | 2.13 | ||
| P/B | 0.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.23 |
EPS(TTM)0.36
EY6.29%
EPS(NY)0.37
Fwd EY6.4%
FCF(TTM)2.1
FCFY36.8%
OCF(TTM)2.69
OCFY47.05%
SpS20.73
BVpS6.65
TBVpS-2.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.84% | ||
| ROE | -2.77% | ||
| ROCE | 4.3% | ||
| ROIC | 3.11% | ||
| ROICexc | 3.15% | ||
| ROICexgc | 6.02% | ||
| OM | 3.88% | ||
| PM (TTM) | N/A | ||
| GM | 27.94% | ||
| FCFM | 10.15% |
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 Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | 4.72 | ||
| Debt/EBITDA | 5.14 | ||
| Cap/Depr | 54.06% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 142.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 1.43 |
F-Score4
WACC7.83%
ROIC/WACC0.4
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)-115.14%
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 5Y7.77%
Revenue 1Y (TTM)-4.11%
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 5Y0.82%
EBIT growth 1Y-51.01%
EBIT growth 3Y19.3%
EBIT growth 5YN/A
EBIT Next Year30.02%
EBIT Next 3Y14.71%
EBIT Next 5Y14.93%
FCF growth 1Y112.21%
FCF growth 3Y36.58%
FCF growth 5YN/A
OCF growth 1Y64.82%
OCF growth 3Y24.53%
OCF growth 5YN/A