Vestis Corporation (VSTS) AI Stock Analysis

• Market Cap: $634.15M
• Dividend Yield: 2.91%
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 122.8
• Beta (1Y): 1.26
• Revenue Growth: -4.59%
• EPS Growth: -125.50%
• Country: US
• Employees: 19,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): -0.01
• Shares Outstanding: 131,839,920
• 10 Day Avg. Volume: 2,299,178
• 30 Day Avg. Volume: 2,309,585
• PEG Ratio: -1.05
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 5.06
• Enterprise Value/Market Cap: 3.45
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 10.53
• 1Y Price Target: $5.17
• Price Target Upside: 7.48% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 48 Neutral
• Price Target: $5.00 ▲(3.95% Upside)

Vestis Corporation's overall stock score is driven by significant financial challenges, including declining revenue and profitability, high leverage, and bearish technical indicators. While there are strategic initiatives in place to address these issues, the current valuation and earnings call sentiment reflect ongoing pressures. The company's efforts to improve cash flow and secure new business provide some optimism, but substantial improvements are needed for a more favorable outlook.

Positive Factors

Cash Flow Generation

Positive cash flow generation indicates efficient cash conversion and provides financial flexibility for investments and debt management.

Strategic Initiatives

Strategic initiatives like value-based pricing and product optimization can enhance profitability and operational efficiency over time.

New Business Wins

New business wins demonstrate the company's ability to capture market opportunities, supporting revenue growth and market position.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining market share and customer retention, impacting long-term growth prospects.

Churn Impact

High churn rates suggest customer retention issues, which can undermine revenue stability and necessitate increased acquisition efforts.

Gross Margin Decrease

Decreasing gross margins reflect rising costs or pricing pressures, which can erode profitability and financial health over time.

Vestis Corporation Business Overview & Revenue Model

Company Description

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. Its products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments, as well as shoes and accessories; and workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries. Vestis Corporation was founded in 1936 and is headquartered in Roswell, Georgia.

How the Company Makes Money

Vestis Corporation generates revenue primarily through a subscription-based model for its software solutions, offering tiered pricing plans that cater to businesses of different sizes and needs. Key revenue streams include licensing fees for its analytics platforms, customized software development services, and consulting fees for implementation and training. Additionally, Vestis partners with technology firms and industry leaders to expand its market reach and enhance its product offerings, which contribute significantly to its earnings. The company also explores opportunities in the form of strategic alliances and joint ventures that can lead to new revenue channels.

Vestis Corporation Financial Statement Overview

Summary

Vestis Corporation faces significant challenges with declining revenue and profitability, as evidenced by negative net profit margins and high leverage. While cash flow generation remains a relative strength, the company must address its operational inefficiencies and manage its debt levels to improve financial stability.

Income Statement

Vestis Corporation's income statement shows a concerning trend with a significant decline in revenue growth rate, particularly in the TTM period, which saw a sharp drop of 89.5%. The gross profit margin has decreased over time, and the net profit margin turned negative in the TTM period, indicating profitability challenges. While the EBIT and EBITDA margins remain positive, they have also declined, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, increasing from 0.077 in 2022 to 1.595 in the TTM period, indicating rising leverage and potential financial risk. Return on equity has turned negative in the TTM period, highlighting profitability issues. However, the equity ratio remains stable, suggesting a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth, with an 8.44% increase in the TTM period. The operating cash flow to net income ratio is below 1, indicating less cash generation relative to net income. However, the free cash flow to net income ratio is strong, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.71B	2.81B	2.83B	2.69B	2.46B	2.56B
Gross Profit	742.86M	815.95M	855.07M	777.33M	690.94M	748.01M
EBITDA	207.89M	299.37M	362.01M	326.60M	229.54M	286.88M
Net Income	-29.97M	20.97M	213.16M	141.68M	74.27M	111.65M
Balance Sheet
Total Assets	2.91B	2.93B	3.16B	3.13B	3.11B	0.00
Cash, Cash Equivalents and Short-Term Investments	23.74M	31.01M	36.05M	23.74M	41.11M	0.00
Total Debt	1.41B	1.38B	1.69B	182.18M	181.58M	0.00
Total Liabilities	2.03B	2.03B	2.28B	797.20M	776.40M	0.00
Stockholders Equity	882.23M	903.05M	877.36M	2.34B	2.33B	0.00
Cash Flow
Free Cash Flow	300.77M	392.88M	179.11M	156.40M	154.20M	173.22M
Operating Cash Flow	328.89M	471.79M	256.98M	232.85M	244.34M	231.29M
Investing Cash Flow	-28.37M	-73.64M	-14.75M	-86.13M	-103.16M	-43.37M
Financing Cash Flow	-305.78M	-402.98M	-230.27M	-162.54M	-125.51M	-175.13M

Vestis Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.81
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTS, the sentiment is Neutral. The current price of 4.81 is above the 20-day moving average (MA) of 4.68, above the 50-day MA of 4.55, and below the 200-day MA of 8.19, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 44.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VSTS.

Vestis Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGRC	79 Outperform	$2.90B	11.47	23.85%	1.64%	8.78%	117.40%
WSC	66 Neutral	$4.02B	36.93	9.82%	0.99%	-2.34%	-37.24%
CTOS	66 Neutral	$1.45B	―	-4.37%	―	6.21%	-177.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HRI	57 Neutral	$4.30B	149.94	1.41%	2.21%	11.41%	-92.67%
VSTS	48 Neutral	$634.15M	122.82	-3.36%	2.91%	-4.59%	-125.50%
ALTG	48 Neutral	$208.31M	―	-77.23%	3.64%	-3.46%	-222.37%

Vestis Corporation Corporate Events

Vestis Corporation Approves Special Long-Term Incentive Awards

On August 20, 2025, Vestis Corporation‘s Compensation and Human Resources Committee approved special Long-Term Incentive awards to retain key employees, excluding the CEO. These awards, effective August 25, 2025, involve time-based restricted stock units for executive officers, with vesting over two to three years, contingent on continued employment. The awards aim to secure the company’s future by retaining critical personnel.