Vestis Corporation (VSTS) AI Stock Analysis

• Market Cap: $940.21M
• Dividend Yield: 1.95%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -2.53%
• EPS Growth: -291.35%
• Country: US
• Employees: 19,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.03
• Shares Outstanding: 131,866,820
• 10 Day Avg. Volume: 3,602,059
• 30 Day Avg. Volume: 2,754,890
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.19
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: 10.76
• 1Y Price Target: $5.95
• Price Target Upside: -17.02% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $7.50 ▲(4.60% Upside)

Vestis Corporation's overall stock score reflects significant challenges in financial performance, particularly in profitability and cash flow generation. While technical analysis shows positive momentum, valuation concerns due to a negative P/E ratio weigh heavily. The earnings call indicates strategic initiatives are underway, but current revenue decline and margin pressures remain critical issues.

Positive Factors

Strategic Transformation Plan

The transformation plan focusing on commercial and operational excellence aims to enhance revenue and achieve cost savings, potentially improving long-term profitability and market position.

Improved Financial Stability

A lower debt-to-equity ratio indicates improved financial stability, reducing financial risk and enhancing the company's ability to invest in growth opportunities.

Recurring Revenue Growth

Growth in recurring revenue reflects strong customer retention and potential for stable cash flow, supporting long-term financial health and strategic initiatives.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in market demand or competitive positioning, potentially impacting the company's ability to fund strategic initiatives and growth.

Profitability Challenges

Ongoing profitability issues suggest difficulties in cost management and pricing strategy, which could hinder long-term financial performance and investment capacity.

Cash Flow Concerns

Reduced cash flow generation limits financial flexibility and the ability to invest in growth or manage debt, posing a risk to long-term operational stability.

Vestis Corporation Business Overview & Revenue Model

Company Description

Vestis Corporation (VSTS) is a diversified company operating primarily in the technology and consumer goods sectors. The company specializes in providing innovative solutions and products that enhance consumer experiences across various platforms. Vestis focuses on developing smart technology products, including wearable devices and IoT solutions, as well as offering software services that integrate these technologies into everyday life. The company aims to leverage its expertise in both hardware and software to create a seamless ecosystem for its customers.

How the Company Makes Money

Vestis Corporation generates revenue through multiple channels, including direct sales of its consumer technology products, subscription services for its software platforms, and partnerships with other companies for co-branded products and services. The primary revenue stream comes from the sale of wearable devices and IoT products, which are marketed through both online and retail channels. Additionally, Vestis earns recurring revenue from subscription-based software services that provide ongoing support and updates for its technology products. Strategic partnerships with technology firms and retailers enhance distribution and visibility, contributing to increased sales and market reach.

Vestis Corporation Financial Statement Overview

Summary

Vestis Corporation faces challenges in profitability and cash flow generation, despite improvements in leverage and asset management. The company needs to focus on enhancing its profit margins and cash flow efficiency to strengthen its financial position in the rental and leasing services industry.

Income Statement

Vestis Corporation's income statement shows mixed performance. The company experienced a slight revenue growth of 2.4% in the most recent year, but profitability has been a challenge with a negative net profit margin of -1.47% and a declining EBIT margin. The gross profit margin has also decreased significantly compared to previous years, indicating potential cost management issues.

Balance Sheet

The balance sheet reflects a reduction in leverage, with the debt-to-equity ratio decreasing from 1.92 to 0.30, which is a positive sign of improved financial stability. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, down by 78.6%, which raises concerns about cash generation capabilities. The operating cash flow to net income ratio is low, indicating potential inefficiencies in converting income into cash. However, the free cash flow to net income ratio is strong, suggesting that the company is managing its cash flow effectively relative to its net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.73B	2.81B	2.83B	2.69B	2.46B
Gross Profit	638.59M	815.95M	855.07M	777.33M	690.94M
EBITDA	190.97M	299.37M	362.01M	326.60M	229.54M
Net Income	-40.22M	20.97M	213.16M	141.68M	74.27M
Balance Sheet
Total Assets	2.91B	2.93B	3.16B	3.13B	3.11B
Cash, Cash Equivalents and Short-Term Investments	29.75M	31.01M	36.05M	23.74M	41.11M
Total Debt	263.53M	1.38B	1.69B	182.18M	181.58M
Total Liabilities	2.04B	2.03B	2.28B	797.20M	776.40M
Stockholders Equity	865.64M	903.05M	877.36M	2.34B	2.33B
Cash Flow
Free Cash Flow	64.23M	392.88M	179.11M	156.40M	154.20M
Operating Cash Flow	64.23M	471.79M	256.98M	232.85M	244.34M
Investing Cash Flow	-19.82M	-73.64M	-14.75M	-86.13M	-103.16M
Financing Cash Flow	-46.06M	-402.98M	-230.27M	-162.54M	-125.51M

Vestis Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VSTS, the sentiment is Positive. The current price of 7.17 is above the 20-day moving average (MA) of 6.28, above the 50-day MA of 5.56, and above the 200-day MA of 6.47, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 71.72 is Negative, neither overbought nor oversold. The STOCH value of 78.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VSTS.

Vestis Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSC	69 Neutral	$3.79B	17.22	21.15%	1.31%	-3.64%	867.62%
HRI	67 Neutral	$4.75B	―	-4.05%	1.96%	19.40%	-120.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VSTS	58 Neutral	$940.21M	―	-4.55%	1.95%	-2.53%	-291.35%
MGRC	58 Neutral	$2.53B	17.39	12.70%	1.75%	4.77%	-35.44%
CTOS	50 Neutral	$1.35B	―	-3.00%	―	7.39%	34.57%
ALTG	49 Neutral	$188.12M	-2.85	-160.65%	4.15%	-3.95%	-47.70%

Vestis Corporation Corporate Events

Vestis Corporation Announces CTO Departure

On October 3, 2025, Vestis Corporation announced the departure of Grant Shih, Executive Vice President and Chief Technology Officer, effective October 7, 2025. His departure is amicable, with no disagreements regarding company operations, and he will receive separation benefits as per his employment agreement.