Vestis Corporation (VSTS)
NYSE:VSTS
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Vestis Corporation
(NYSE:VSTS)
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Rating:55Neutral
Price Target:
$7.50
▼(-8.09% Downside)
Action:ReiteratedDate:02/25/26
The score is held back primarily by deteriorated financial performance (sharp TTM revenue decline, current losses, and elevated leverage), partly offset by positive cash flow. Technicals are moderately supportive with improving trend indicators, while valuation is constrained by a negative P/E despite a high dividend yield. The latest earnings call adds cautious support via reaffirmed guidance and a clear transformation plan, but near-term top-line and mix pressures remain.
Positive Factors
Stable cash generation and FCF
Consistent positive operating cash flow and free cash flow provide durable internal funding to support transformation, capex and debt reduction. Even with near-term losses, recurring cash generation reduces reliance on external financing and underpins the company's ability to execute multi-quarter strategic initiatives.
Negative Factors
Sharp TTM revenue decline and current unprofitability
A dramatic drop in trailing revenue and negative net margin materially weakens operating leverage and long-term reinvestment capacity. Sustained top-line weakness can prolong losses, limit ability to fund transformation internally, and heighten execution risk over the next several quarters absent durable demand recovery or pricing/mix fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable cash generation and FCF
Consistent positive operating cash flow and free cash flow provide durable internal funding to support transformation, capex and debt reduction. Even with near-term losses, recurring cash generation reduces reliance on external financing and underpins the company's ability to execute multi-quarter strategic initiatives.
Read all positive factors
Vestis Corporation (VSTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.08B
Dividend Yield2.09%
Average Volume (3M)2.87M
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth-2.53%
EPS Growth-291.35%
CountryUS
Employees19,600
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding131,948,940
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 Cap2.32
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit3.53
Enterprise Value/Ebitda14.09
Forecast
1Y Price Target
$8.18Price Target Upside0.25% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)0.4
Revenue Forecast (FY)$2.65B
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 fla...
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 service...
Vestis Corporation Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced message: notable operational and cash-flow improvements driven by early transformation actions (productivity gains, cost per pound improvement, strong operating cash flow and adjusted free cash flow excluding transformation spend) offset by near-term commercial challenges (revenue decline and lower revenue per pound driven by an unfavorable product mix) and transformation-related charges. Management reaffirmed FY26 guidance, has a clear plan and target savings runway, and emphasizes that the company is early in the transformation with sequential improvement expected.Positive Updates
Operational Performance Improvements
On-time delivery improved 300 basis points versus 2025; plant productivity increased 7%; customer complaints declined 12% year over year; average weekly lost business in Q1 declined 15% sequentially from Q4 2025.
Negative Updates
Revenue Decline Year over Year
Q1 revenue was $663.4 million, down $20.4 million, or 3% versus fiscal 2025; rental revenue declined $17.9 million and direct sales declined $2.7 million (partially offset by a $0.2 million FX benefit).
Read all updates
Q1-2026 Updates
Positive
Negative
Operational Performance Improvements
On-time delivery improved 300 basis points versus 2025; plant productivity increased 7%; customer complaints declined 12% year over year; average weekly lost business in Q1 declined 15% sequentially from Q4 2025.
Read all positive updates
Company Guidance
Vestis reaffirmed FY‑2026 guidance of revenue flat to down 2% (52‑week basis), adjusted EBITDA of $285–$315 million (with 5% sequential quarterly improvements starting in Q2), and free cash flow of $50–$60 million assuming capex in line with 2025 and working capital generally flat; Q1 results included revenue of $663.4M (down $20.4M, -3%), adjusted EBITDA $70.4M (10.6% margin), operating cash flow $38M and free cash flow $28M (or $15.6M excluding a $12.7M working‑capital benefit), Q1 capex $9.4M (below a $15M/quarter baseline), net debt $1.29B, $317M liquidity (including $275M undrawn revolver and $42M cash), and a Q1 stand‑alone tax rate of 25.3% (full‑year tax guidance 25–30%); management expects $40M of in‑year transformation savings toward a $75M FY‑2027 run‑rate, reported a $0.02 cost‑per‑pound improvement (~$10M of EBITDA at current volume/mix and roughly $5M of EBITDA per $0.01), noted revenue‑per‑pound declined $0.04 (~$20M impact), and disclosed Q1 transformation cash outlays of ~$9M third‑party and $5.6M severance with planned deleveraging actions (including non‑core property sales) beginning in Q2.Vestis Corporation Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
50
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.71B | 2.73B | 2.81B | 2.83B | 2.69B | 2.46B |
| Gross Profit | 707.41M | 724.76M | 815.95M | 855.07M | 777.33M | 690.94M |
| EBITDA | 177.38M | 190.97M | 299.37M | 408.34M | 328.86M | 229.54M |
| Net Income | -47.45M | -40.22M | 20.97M | 213.16M | 141.68M | 74.27M |
Balance Sheet | ||||||
| Total Assets | 2.88B | 2.91B | 2.93B | 3.16B | 3.13B | 3.11B |
| Cash, Cash Equivalents and Short-Term Investments | 41.55M | 29.75M | 31.01M | 36.05M | 23.74M | 41.11M |
| Total Debt | 1.41B | 1.42B | 1.38B | 1.69B | 182.18M | 181.58M |
| Total Liabilities | 2.02B | 2.04B | 2.03B | 2.28B | 797.20M | 776.40M |
| Stockholders Equity | 864.43M | 865.64M | 903.05M | 877.36M | 2.34B | 2.33B |
Cash Flow | ||||||
| Free Cash Flow | 88.12M | 5.77M | 392.88M | 179.11M | 156.40M | 154.20M |
| Operating Cash Flow | 98.14M | 64.23M | 471.79M | 256.98M | 232.85M | 244.34M |
| Investing Cash Flow | -46.79M | -19.82M | -73.64M | -14.75M | -86.13M | -103.16M |
| Financing Cash Flow | -27.98M | -46.06M | -402.98M | -230.27M | -162.54M | -125.51M |
Vestis Corporation Technical Analysis
Positive
8.16
Price Trends
7.57
Positive
7.06
Positive
6.11
Positive
Market Momentum
0.11
Negative
60.98
Neutral
69.85
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 8.16 is above the 20-day moving average (MA) of 7.68, above the 50-day MA of 7.57, and above the 200-day MA of 6.11, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 60.98 is Neutral, neither overbought nor oversold. The STOCH value of 69.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.76B | 12.96 | 13.21% | 1.79% | 4.77% | -35.44% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $1.08B | -33.95 | -4.55% | 2.09% | -2.53% | -291.35% | |
51 Neutral | $3.41B | -64.81 | -5.35% | 1.44% | -3.64% | 867.62% | |
47 Neutral | $3.39B | 4,644.29 | 0.06% | 1.79% | 19.40% | -120.47% | |
47 Neutral | $1.59B | -42.03 | -3.00% | ― | 7.39% | 34.57% | |
46 Neutral | $187.47M | -3.18 | -160.65% | 4.88% | -3.95% | -47.70% |
* Industrials Sector Average
VSTS
Vestis Corporation
8.16
0.27
3.42%
WSC
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18.84
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-23.06%
HRI
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101.52
-13.89
-12.04%
MGRC
Mcgrath Rentcorp
112.27
11.23
11.12%
CTOS
Custom Truck One Source
7.00
3.46
97.74%
ALTG
Alta Equipment Group
5.81
1.57
37.03%
Vestis Corporation Corporate Events
Executive/Board ChangesShareholder Meetings
Vestis Shareholders Approve Directors, Pay and Auditor
Positive
Feb 24, 2026
Vestis Corporation reported the results of its 2026 Annual Meeting of Shareholders held on February 18, 2026, where investors voted on board composition, executive pay and auditor selection. Shareholders elected three directors—Tracy Jokinen...
Business Operations and StrategyExecutive/Board Changes
Vestis Corporation Appoints Interim CFO Amid Leadership Change
Neutral
Dec 16, 2025
On December 10, 2025, Kelly Janzen announced her resignation as Executive Vice President and Chief Financial Officer of Vestis Corporation, effective December 31, 2025, to pursue other opportunities. Her departure is not due to any disagreements w...
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.