(VSTS) Vestis - Overview
Sector: Industrials | Industry: Rental & Leasing Services | Exchange: NYSE (USA) | Market Cap: 1.551m USD | Total Return: 92.7% in 12m
Avg Turnover: 12.3M
Qual. Beats: 0
Rev. Trend: -85.0%
Qual. Beats: 0
Warnings
High Debt/EBITDA (6.4) with thin interest coverage (0.9)
Interest Coverage Ratio 0.9 is critical
Below Avwap Earnings
Tailwinds
Shakeout, Supp Ema20, Rs Leader, Idiosyncratic Leader
Vestis Corporation (NYSE: VSTS) is a provider of uniform rental programs and workplace facility services across the United States and Canada. The company specializes in a recurring service model, supplying laundered apparel, linens, and safety products to diverse sectors including healthcare, manufacturing, and food service. This business model relies on high customer retention and route density to optimize logistics costs in the fragmented textile rental industry.
The companys portfolio extends beyond corporate apparel to include managed restroom services, first-aid supplies, and specialized cleanroom garments. In the North American uniform rental market, competition is primarily driven by service reliability and the ability to meet stringent hygiene standards for industrial and pharmaceutical clients. Investors may find it useful to examine Vestiss historical margin trends on ValueRay.
Founded in 1936 and headquartered in Roswell, Georgia, Vestis operates within the Trading Companies & Distributors GICS sub-industry. The firm’s infrastructure supports a wide range of essential workplace needs, from flame-resistant outerwear to floor mat maintenance, positioning it as a consolidated vendor for facility operations.
- Customer retention rates and pricing power dictate long-term organic revenue growth
- Operational efficiency gains from route optimization impact adjusted EBITDA margins
- Exposure to manufacturing and hospitality sectors links performance to industrial production
- High debt leverage ratios influence valuation multiples amid fluctuating interest rates
- Competitive bidding for large-scale enterprise contracts determines market share trajectory
| Net Income: -17.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -6.18 > 1.0 |
| NWC/Revenue: 16.68% < 20% (prev 13.91%; Δ 2.77% < -1%) |
| CFO/TA 0.05 > 3% & CFO 149.7m > Net Income -17.0m |
| Net Debt (1.38b) to EBITDA (215.7m): 6.39 < 3 |
| Current Ratio: 2.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (133.1m) vs 12m ago 0.99% < -2% |
| Gross Margin: 24.78% > 18% (prev 0.28%; Δ 2.45k% > 0.5%) |
| Asset Turnover: 93.85% > 50% (prev 94.22%; Δ -0.37% > 0%) |
| Interest Coverage Ratio: 0.85 > 6 (EBITDA TTM 215.7m / Interest Expense TTM 90.1m) |
| A: 0.16 (Total Current Assets 850.7m - Total Current Liabilities 398.8m) / Total Assets 2.87b |
| B: -0.02 (Retained Earnings -50.7m / Total Assets 2.87b) |
| C: 0.03 (EBIT TTM 76.6m / Avg Total Assets 2.89b) |
| D: -0.04 (Book Value of Equity -75.7m / Total Liabilities 2.01b) |
| Altman-Z'' = 1.11 = BB |
| DSRI: 0.93 (Receivables 149.5m/162.4m, Revenue 2.71b/2.73b) |
| GMI: 1.13 (GM 24.78% / 27.94%) |
| AQI: 0.96 (AQ_t 0.45 / AQ_t-1 0.47) |
| SGI: 0.99 (Revenue 2.71b / 2.73b) |
| TATA: -0.06 (NI -17.0m - CFO 149.7m) / TA 2.87b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 11.79 with a total of 2,124,344 shares traded.
Over the past week, the price has changed by -3.12%,
over one month by +22.30%,
over three months by +50.57% and
over the past year by +92.65%.
Vestis has received a consensus analysts rating of 3.33. Therefore, it is recommended to hold VSTS.
- StrongBuy: 2
- Buy: 0
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 10.2 | -13.8% |
P/S = 0.5726
P/B = 1.7884
Revenue TTM = 2.71b USD
EBIT TTM = 76.6m USD
EBITDA TTM = 215.7m USD
Long Term Debt = 1.12b USD (from longTermDebt, last quarter)
Short Term Debt = 50.8m USD (from shortTermDebt, last quarter)
Debt = 1.43b USD (corrected: LT Debt 1.12b + ST Debt 50.8m) + Leases 262.1m
Net Debt = 1.38b USD (calculated: Debt 1.43b - CCE 50.3m)
Enterprise Value = 2.93b USD (1.55b + Debt 1.43b - CCE 50.3m)
Interest Coverage Ratio = 0.85 (Ebit TTM 76.6m / Interest Expense TTM 90.1m)
EV/FCF = 30.06x (Enterprise Value 2.93b / FCF TTM 97.4m)
FCF Yield = 3.33% (FCF TTM 97.4m / Enterprise Value 2.93b)
FCF Margin = 3.60% (FCF TTM 97.4m / Revenue TTM 2.71b)
Net Margin = -0.63% (Net Income TTM -17.0m / Revenue TTM 2.71b)
Gross Margin = 24.78% ((Revenue TTM 2.71b - Cost of Revenue TTM 2.04b) / Revenue TTM)
Gross Margin QoQ = 21.10% (prev 25.80%)
Tobins Q-Ratio = 1.02 (Enterprise Value 2.93b / Total Assets 2.87b)
Interest Expense / Debt = 6.31% (Interest Expense 90.1m / Debt 1.43b)
Taxrate = 21.0% (US default 21%)
NOPAT = 60.5m (EBIT 76.6m * (1 - 21.00%))
Current Ratio = 2.13 (Total Current Assets 850.7m / Total Current Liabilities 398.8m)
Debt / Equity = 1.65 (Debt 1.43b / totalStockholderEquity, last quarter 867.2m)
Debt / EBITDA = 6.39 (Net Debt 1.38b / EBITDA 215.7m)
Debt / FCF = 14.14 (Net Debt 1.38b / FCF TTM 97.4m)
Total Stockholder Equity = 869.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.59% (Net Income -17.0m / Total Assets 2.87b)
RoE = -1.85% (Net Income TTM -17.0m / Total Stockholder Equity 920.5m)
RoCE = 3.76% (EBIT 76.6m / Capital Employed (Equity 920.5m + L.T.Debt 1.12b))
RoIC = 2.40% (NOPAT 60.5m / Invested Capital 2.52b)
WACC = 8.06% (E(1.55b)/V(2.98b) * Re(10.89%) + D(1.43b)/V(2.98b) * Rd(6.31%) * (1-Tc(0.21)))
Discount Rate = 10.89% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 42.22 | Cagr: 0.44%
[DCF] Terminal Value 73.10% ; FCFF base≈169.4m ; Y1≈148.6m ; Y5≈120.0m
[DCF] Fair Price = 4.15 (EV 1.93b - Net Debt 1.38b = Equity 548.6m / Shares 132.1m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.52 | # QB: 0
Revenue Correlation: -85.02 | Revenue CAGR: -1.87% | SUE: 0.22 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.10 | Chg30d=-1.88% | Revisions=-11% | Analysts=6
EPS current Year (2026-09-30): EPS=0.49 | Chg30d=+15.97% | Revisions=+56% | GrowthEPS=+94.0% | GrowthRev=-2.7%
EPS next Year (2027-09-30): EPS=0.66 | Chg30d=+23.97% | Revisions=+56% | GrowthEPS=+37.0% | GrowthRev=+1.7%
[Analyst] Revisions Ratio: +56%