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Vestis Corporation
(NYSE:VSTS)
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Rating:53Neutral
Price Target:
$14.00
▼(-10.14% Downside)
Action:Reiterated
Date:08/11/26
The score is held back primarily by weak recent financial performance (sharp TTM revenue decline, margin compression, and a small net loss) and still-elevated leverage, despite a strong rebound in free cash flow. The latest earnings call improves the outlook with raised EBITDA and free-cash-flow guidance and better operating KPIs, but the technical setup remains weak with the stock trading below key moving averages and negative MACD. Valuation provides limited support due to the negative P/E and no stated dividend yield.
Positive Factors
Recurring service revenue model
A subscription-like service model creates durable, predictable revenue and higher customer retention versus one-time sales. Recurring contracts support steady cash flow, improve visibility for capacity planning, and enable investment in route/network optimization that strengthens long-term margins and customer relationships.
Negative Factors
Sharp revenue decline
A large, multi-year revenue drop materially reduces scale economics and weakens pricing leverage. Even with margin recovery efforts, lower volumes strain fixed-cost absorption across plants and routes, making sustained margin improvement harder without durable top-line stabilization or successful customer re-acquisition.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring service revenue model
A subscription-like service model creates durable, predictable revenue and higher customer retention versus one-time sales. Recurring contracts support steady cash flow, improve visibility for capacity planning, and enable investment in route/network optimization that strengthens long-term margins and customer relationships.
Read all positive factors
Vestis Corporation Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Vestis is strongest and where it may face risk or growth potential due to local economic conditions, market share shifts, or concentration in a small number of markets.
Breaks down revenue across different regions, revealing where Vestis is strongest and where it may face risk or growth potential due to local economic conditions, market share shifts, or concentration in a small number of markets.
Data provided by:
The Fly
The FlyVestis Corporation (VSTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.79B
Dividend YieldN/A
Average Volume (3M)2.87M
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue Growth-0.39%
EPS Growth82.24%
CountryUS
Employees18,150
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding132,160,110
10 Day Avg. Volume1,983,408
30 Day Avg. Volume2,871,422
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.77
Price to Sales (P/S)0.24
P/FCF Ratio115.33
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.83Price Target Upside-24.10% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
EPS Forecast (FY)0.6
Revenue Forecast (FY)$2.65B
Vestis Corporation Business Overview & Revenue Model
Company Description
Founded in Roswell, Georgia, in 1936, Vestis Corporation specializes in offering uniform rental and various workplace supply services across both the United States and Canada. The company's product line includes a wide array of uniform choices, fr...
How the Company Makes Money
Vestis makes money primarily through recurring service contracts in which it supplies uniforms and related workplace items and provides ongoing servicing (such as regular scheduled delivery/pickup and program management) to business customers. Rev...
Vestis Corporation Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call conveyed marked operational and financial progress: material adjusted EBITDA growth, margin expansion, positive net income and stronger cash generation leading to an upward revision of free cash flow guidance. Improvements in pricing execution, product mix, plant productivity and cost control underpin these gains. However, management acknowledged notable challenges — a meaningful performance gap across market centers (quadrant underperformance), intentional volume exits that weighed on revenue, elevated net debt and ongoing transformation costs. The tone is constructive and management provided concrete initiatives (outsourcing savings, targeted CapEx, MDR ramp, quadrant remediation) to convert improvements into sustainable growth. On balance, the positive financial momentum and raised guidance appear to outweigh the remaining execution and network risks, contingent on management delivering the planned quadrant upgrades and field recovery.Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA for Q3 was $80.9M, up roughly $15M or ~23% year-over-year (covenant adjusted). Adjusted EBITDA margin expanded to 12.2% from ~9.8% a year ago (≈+240 bps). Implied Q4 adjusted EBITDA range is $84M–$89M.
Negative Updates
Top-Line Slight Decline and Volume Contraction
Total Q3 revenue was ~$662M, down about $12M or ~1.8% year-over-year (or down ~0.3% excluding a $10M lower one-time 'loss in ruin' revenue impact). Pounds processed fell ~4.5% (≈22M lbs), reflecting intentional exits but contributing to near-term top-line pressure.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA for Q3 was $80.9M, up roughly $15M or ~23% year-over-year (covenant adjusted). Adjusted EBITDA margin expanded to 12.2% from ~9.8% a year ago (≈+240 bps). Implied Q4 adjusted EBITDA range is $84M–$89M.
Read all positive updates
Company Guidance
Vestis raised full‑year fiscal 2026 free cash flow guidance to $160–170M (midpoint $165M) from $120–150M, assuming $60–70M of cash capex and $35–40M of cash-paid transformation costs, and reiterated revenue will be flat to down ~2% vs. normalized FY2025 while raising adjusted EBITDA guidance to $310–315M (midpoint $312.5M), implying Q4 adjusted EBITDA of $84–89M. Third‑quarter results that underpin the guidance included revenue of ~$662M (‑1.8% YoY), adjusted EBITDA $80.9M (12.2% margin), revenue per pound $1.42 (+$0.04 YoY, +$0.05 seq.), pounds processed down ~4.5% (~22M lbs), cost per pound flat at $1.24, cost of services down ~$15M YoY, SG&A down ~$7M (≈‑6%), and net income of $11M vs. a $0.7M loss LY. Cash flow/balance sheet metrics: Q3 operating cash flow $65M, free cash flow $47M (adjusted free cash flow $56M excluding ~$8.5M transformation cash spend), YTD transformation benefits ~$30M of an expected ~$50M (Q1 $5M, Q2 $10M, Q3 $15M, ~$20M remaining in Q4), an outsourcing initiative expected to save ~$10M annualized in FY2027 (some Q4 benefit), liquidity ~$352M (undrawn revolver $294M + cash $58M), net debt $1.2B, principal bank debt $1.1B, and no debt maturities until 2028; full‑year effective tax rate ~25% (Q4 ~30%).Vestis Corporation Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.70B | 2.73B | 2.81B | 2.83B | 2.69B | 2.46B |
| Gross Profit | 674.54M | 724.76M | 815.95M | 855.07M | 777.33M | 690.94M |
| EBITDA | 222.63M | 190.97M | 299.37M | 408.34M | 328.86M | 230.66M |
| Net Income | -5.30M | -40.22M | 20.97M | 213.16M | 141.68M | 74.27M |
Balance Sheet | ||||||
| Total Assets | 2.83B | 2.91B | 2.93B | 3.16B | 3.13B | 3.11B |
| Cash, Cash Equivalents and Short-Term Investments | 57.66M | 29.75M | 31.01M | 36.05M | 23.74M | 41.11M |
| Total Debt | 252.71M | 1.42B | 1.38B | 1.69B | 182.18M | 181.58M |
| Total Liabilities | 1.95B | 2.04B | 2.03B | 2.28B | 797.20M | 776.40M |
| Stockholders Equity | 877.67M | 865.64M | 903.05M | 877.36M | 2.34B | 2.33B |
Cash Flow | ||||||
| Free Cash Flow | 136.41M | 5.77M | 392.88M | 179.11M | 156.40M | 154.20M |
| Operating Cash Flow | 191.80M | 64.23M | 471.79M | 256.98M | 232.85M | 244.34M |
| Investing Cash Flow | -47.75M | -19.82M | -73.64M | -14.75M | -86.13M | -103.16M |
| Financing Cash Flow | -110.77M | -46.06M | -402.98M | -230.27M | -162.54M | -125.51M |
Vestis Corporation Technical Analysis
Negative
15.58
Price Trends
14.22
Negative
12.04
Positive
9.39
Positive
Market Momentum
-0.18
Positive
37.76
Neutral
41.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTS, the sentiment is Negative. The current price of 15.58 is above the 20-day moving average (MA) of 14.81, above the 50-day MA of 14.22, and above the 200-day MA of 9.39, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 37.76 is Neutral, neither overbought nor oversold. The STOCH value of 41.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VSTS.
Vestis Corporation Risk Analysis
Vestis Corporation disclosed 35 risk factors in its most recent earnings report. Vestis Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vestis Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $69.75B | 27.83 | 29.18% | 0.66% | 6.88% | 7.64% | |
67 Neutral | $33.30B | 27.18 | 17.48% | 0.96% | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $4.17B | -64.22 | -7.45% | 1.06% | -2.51% | -162.51% | |
53 Neutral | $1.79B | -305.73 | -0.61% | ― | -0.39% | 82.24% | |
49 Neutral | $5.64B | 118.03 | 2.56% | 1.72% | 28.50% | 67.75% | |
48 Neutral | $5.41B | 219.23 | 5.20% | ― | ― | ― |
* Industrials Sector Average
VSTS
Vestis Corporation
13.33
8.65
184.83%
WSC
WillScot Mobile Mini Holdings
23.76
-0.12
-0.49%
HRI
Herc Holdings
173.51
51.25
41.92%
URI
United Rentals
1,153.83
252.31
27.99%
EQPT
EquipmentShare.com, Inc.
20.63
-11.93
-36.64%
SUNB
Sunbelt Rentals Holdings Inc
84.80
11.77
16.12%
Vestis Corporation Corporate Events
Business Operations and StrategyExecutive/Board Changes
Vestis updates interim CFO agreement amid leadership transition
Positive
Jun 15, 2026
On June 12, 2026, Vestis Corporation entered into second amended and restated employment documents with Interim Chief Financial Officer Adam K. Bowen, updating and replacing his prior agreements while keeping his annual base salary at $400,000 and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.