VSTS Stock Analysis: Vestis | NYSE
Rental & Leasing Services | NYSE, USA | Market Cap: 1.949m USD | 12M Return: 189.7% | US29430C1027 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 18.9M
Qual. Beats: 0
Rev. Trend: -93.2%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 3 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Vestis Corporation (NYSE: VSTS) is a U.S.-based provider of uniform rental services and workplace supplies, operating across the United States and Canada. The company offers a broad product portfolio that includes a wide range of uniform categories-such as shirts, pants, outerwear, gowns, scrubs, high-visibility garments, particulate-free and flame-resistant garments-as well as shoes, accessories, and workplace essentials like managed restroom supplies, first-aid and safety products, floor mats, towels, and linens. Its customer base spans a diverse set of end markets, including manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries. Founded in 1936 and headquartered in Roswell, Georgia, Vestis was spun out as a public company in October 2023 and currently carries a small-cap market valuation of roughly $1.8 billion.
The uniform rental industry is characterized by recurring revenue streams and long-standing customer relationships, as clients typically rely on weekly or bi-weekly delivery, laundering, and replacement cycles rather than purchasing garments outright. This rental-plus-services model tends to generate predictable cash flow and create meaningful switching costs once a provider is embedded in a customers operations. Vestis operates within the GICS Trading Companies & Distributors sub-industry but functions more like a specialized business-to-business services firm, where scale in laundry infrastructure, route logistics, and inventory management are key competitive advantages.
- Customer attrition pressures organic uniform rental revenue
- Pricing actions and route efficiency drive margin recovery
- Acquisitions expand uniform route density in fragmented market
| Net Income: -5.30m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -4.04 > 1.0 |
| NWC/Revenue: 16.60% < 20% (prev 13.84%; Δ 2.76% < -1%) |
| CFO/TA 0.07 > 3% & CFO 191.8m > Net Income -5.30m |
| Net Debt (1.53b) to EBITDA (222.6m): 6.89 < 3 |
| Current Ratio: 2.17 > 1.5 & < 3 |
| Outstanding Shares: last quarter (134.3m) vs 12m ago 1.91% < -2% |
| Gross Margin: 25.02% > 18% (prev 27.44%; Δ -2.43% > 0.5%) |
| Asset Turnover: 93.98% > 50% (prev 93.09%; Δ 0.89% > 0%) |
| Interest Coverage Ratio: 0.97 > 6 (EBIT TTM 85.1m / Interest Expense TTM 87.7m) |
| A: 0.16 (Total Current Assets 831.6m - Total Current Liabilities 384.0m) / Total Assets 2.83b |
| B: -0.01 (Retained Earnings -39.6m / Total Assets 2.83b) |
| C: 0.03 (EBIT TTM 85.1m / Avg Total Assets 2.87b) |
| D: 0.45 (Book Value of Equity 877.7m / Total Liabilities 1.95b) |
| Altman-Z'' = 1.66 = BB |
| DSRI: 0.82 (Receivables 143.0m/175.8m, Revenue 2.70b/2.71b) |
| GMI: 1.10 (GM 27.44% / 25.02%) |
| AQI: 0.97 (AQ_t 0.45 / AQ_t-1 0.46) |
| SGI: 1.00 (Revenue 2.70b / 2.71b) |
| TATA: -0.07 (NI -5.30m - CFO 191.8m) / TA 2.83b) |
| Beneish M = -3.12 (Cap -4..+1) = AA |
As of October 31, 2026, the stock is trading at USD 14.83 with a total of 1,438,146 shares traded. Over the past week, the price has changed by +0.54%, over one month by +10.18%, over three months by +1.64% and over the past year by +189.65%.
Current recommended Stop Loss: 14.20 (which is 4.2% or 1.2 ATR below the current price).
Vestis has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold VSTS.
- StrongBuy: 2
- Buy: 0
- Hold: 3
- Sell: 2
- StrongSell: 1
| Analysts Target Price | 13 | -12.3% |
P/S = 0.7229
P/B = 0.7263
Revenue TTM = 2.70b USD
EBIT TTM = 85.1m USD
EBITDA TTM = 222.6m USD
Long Term Debt = 1.09b USD (from longTermDebt, last quarter)
Short Term Debt = 56.3m USD (from shortTermDebt, last quarter)
Debt = 1.59b USD (from shortLongTermDebtTotal, last quarter) + Leases 252.7m
Net Debt = 1.53b USD (calculated: Debt 1.59b - CCE 57.7m)
Enterprise Value = 3.48b USD (1.95b + Debt 1.59b - CCE 57.7m)
Interest Coverage Ratio = 0.97 (Ebit TTM 85.1m / Interest Expense TTM 87.7m)
EV/FCF = 25.53x (Enterprise Value 3.48b / FCF TTM 136.4m)
FCF Yield = 3.92% (FCF TTM 136.4m / Enterprise Value 3.48b)
FCF Margin = 5.06% (FCF TTM 136.4m / Revenue TTM 2.70b)
Net Margin = -0.20% (Net Income TTM -5.30m / Revenue TTM 2.70b)
Gross Margin = 25.02% ((Revenue TTM 2.70b - Cost of Revenue TTM 2.02b) / Revenue TTM)
Gross Margin QoQ = 28.02% (prev 21.10%)
Tobins Q-Ratio = 1.23 (Enterprise Value 3.48b / Total Assets 2.83b)
Interest Expense / Debt = 5.51% (Interest Expense 87.7m / Debt 1.59b)
Taxrate = 22.99% (3.30m / 14.3m)
NOPAT = 65.5m (EBIT 85.1m * (1 - 22.99%))
Current Ratio = 2.17 (Total Current Assets 831.6m / Total Current Liabilities 384.0m)
Debt / Equity = 1.81 (Debt 1.59b / totalStockholderEquity, last quarter 877.7m)
Debt / EBITDA = 6.89 (Net Debt 1.53b / EBITDA 222.6m)
Debt / FCF = 11.24 (Net Debt 1.53b / FCF TTM 136.4m)
Total Stockholder Equity = 868.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.18% (Net Income -5.30m / Total Assets 2.83b)
RoE = -0.61% (Net Income TTM -5.30m / Total Stockholder Equity 868.7m)
RoCE = 4.35% (EBIT 85.1m / Capital Employed (Equity 868.7m + L.T.Debt 1.09b))
RoIC = 2.68% (NOPAT 65.5m / Invested Capital 2.45b)
WACC = 7.55% (E(1.95b)/V(3.54b) * Re(10.24%) + D(1.59b)/V(3.54b) * Rd(5.51%) * (1-Tc(0.23)))
Discount Rate = 10.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 67.91 | Cagr: 0.82%
[DCF] Terminal Value 73.10% ; FCFF base≈184.9m ; Y1≈162.2m ; Y5≈131.0m
[DCF] Fair Price = 4.31 (EV 2.10b - Net Debt 1.53b = Equity 569.1m / Shares 132.2m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.47 | # QB: 0
Revenue Correlation: -93.16 | Revenue CAGR: -2.20% | SUE: -0.30 | # QB: 0
EPS current Quarter (2026-12-31): EPS=0.17 | Chg30d=+22.91% | Revisions=+57% | Analysts=5
EPS current Year (2026-09-30): EPS=0.61 | Chg30d=+0.02% | Revisions=+70% | GrowthEPS=+145.0% | GrowthRev=-3.1%
EPS next Year (2027-09-30): EPS=0.78 | Chg30d=+0.05% | Revisions=+70% | GrowthEPS=+26.9% | GrowthRev=+1.8%
[Analyst] Revisions Ratio: +86% (up=18, down=0)