VESTIS CORP (VSTS) Stock Fundamental Analysis
NYSE:VSTS - New York Stock Exchange, Inc. - US29430C1027 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to VSTS. VSTS was compared to 83 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of VSTS get a neutral evaluation. Nothing too spectacular is happening here. VSTS is cheap, but on the other hand it scores bad on growth.
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 of 0.33%. This is comparable to the rest of the industry: VSTS outperforms 42.17% of its industry peers.
VSTS's Return On Equity of 1.06% is in line compared to the rest of the industry. VSTS outperforms 46.99% of its industry peers.
With a Return On Invested Capital value of 4.42%, VSTS perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VSTS is significantly below the industry average of 10.56%.
| 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
With a Profit Margin value of 0.34%, VSTS perfoms like the industry average, outperforming 43.37% of the companies in the same industry.
In the last couple of years the Profit Margin of VSTS has declined.
VSTS's Operating Margin of 5.41% is in line compared to the rest of the industry. VSTS outperforms 48.19% of its industry peers.
In the last couple of years the Operating Margin of VSTS has grown nicely.
VSTS's Gross Margin of 28.46% is in line compared to the rest of the industry. VSTS outperforms 46.99% 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
VSTS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.49, we must say that VSTS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.49, VSTS is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
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.
A Debt/Equity ratio of 1.39 is on the high side and indicates that VSTS has dependencies on debt financing.
VSTS has a Debt to Equity ratio of 1.39. This is in the lower half of the industry: VSTS underperforms 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.66
WACC6.72%
2.3 Liquidity
A Current Ratio of 1.80 indicates that VSTS should not have too much problems paying its short term obligations.
VSTS has a Current ratio of 1.80. This is in the better half of the industry: VSTS outperforms 66.27% 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.
Looking at the Quick ratio, with a value of 1.43, VSTS is in line with its industry, outperforming 54.22% of the companies in the same industry.
| 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%.
The earnings per share for VSTS have been decreasing by -34.65% on average. This is quite bad
The Revenue has decreased by -0.69% in the past 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.
Based on estimates for the next years, VSTS will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y14.52%
EPS Next 2Y19.65%
EPS Next 3Y22.44%
EPS Next 5Y24.06%
Revenue Next Year0.35%
Revenue Next 2Y1.45%
Revenue Next 3Y2.45%
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.
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
With a Price/Earnings ratio of 15.11, VSTS is valued correctly.
Based on the Price/Earnings ratio, VSTS is valued a bit cheaper than 75.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of VSTS to the average of the S&P500 Index (23.99), we can say VSTS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 6.13, the valuation of VSTS can be described as very cheap.
Based on the Price/Forward Earnings ratio, VSTS is valued cheaper than 95.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, VSTS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 6.13 |
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 79.52% of the companies listed in the same industry.
100.00% of the companies in the same industry are more expensive than VSTS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.06 | ||
| EV/EBITDA | 6.77 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VSTS's earnings are expected to grow with 22.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y19.65%
EPS Next 3Y22.44%
5. Dividend
5.1 Amount
VSTS has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
The stock price of VSTS dropped by -60.47% 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 2.55, 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 slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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
VSTS pays out 155.51% of its income as dividend. This is not a sustainable payout ratio.
DP155.51%
EPS Next 2Y19.65%
EPS Next 3Y22.44%
5.44
-3.27 (-37.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners104.14%
Inst Owner Change-1.1%
Ins Owners0.59%
Ins Owner Change12.58%
Market Cap716.72M
Analysts73.33
Price Target15.25 (180.33%)
Short Float %5.69%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)-7%
PT rev (3m)-8.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.31%
EPS NY rev (1m)0%
EPS NY rev (3m)5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 6.13 | ||
| P/S | 0.26 | ||
| P/FCF | 2.06 | ||
| P/OCF | 1.69 | ||
| P/B | 0.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.77 |
EPS(TTM)0.36
EY6.62%
EPS(NY)0.89
Fwd EY16.31%
FCF(TTM)2.64
FCFY48.47%
OCF(TTM)3.22
OCFY59.17%
SpS21.04
BVpS6.83
TBVpS-2.04
PEG (NY)1.04
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 | 1.49 |
F-Score4
WACC6.72%
ROIC/WACC0.66
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 Y14.52%
EPS Next 2Y19.65%
EPS Next 3Y22.44%
EPS Next 5Y24.06%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y4.53%
Revenue growth 5YN/A
Sales Q2Q%-5.67%
Revenue Next Year0.35%
Revenue Next 2Y1.45%
Revenue Next 3Y2.45%
Revenue Next 5Y3.32%
EBIT growth 1Y-45.4%
EBIT growth 3Y19.3%
EBIT growth 5YN/A
EBIT Next Year71.87%
EBIT Next 3Y25.93%
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