Vestis Corporation (VSTS) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: 2.09%
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -2.53%
• EPS Growth: -291.35%
• Country: US
• Employees: 19,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.10
• Shares Outstanding: 131,948,940
• 10 Day Avg. Volume: 1,983,408
• 30 Day Avg. Volume: 2,871,422
• PEG Ratio: 0.06
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 115.33
• Enterprise Value/Market Cap: 2.34
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 13.34
• 1Y Price Target: $8.08
• Price Target Upside: 1.25% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $8.00 ▲(0.25% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

The score is held back primarily by weakening financial performance (sharp TTM revenue decline, losses, and elevated leverage), partially offset by positive cash generation and a constructive technical trend (price above major moving averages with positive MACD). Reaffirmed guidance and early transformation progress provide moderate support, while valuation remains constrained by negative earnings despite a modest dividend yield.

Positive Factors

Strong cash generation and free cash flow

Consistent positive operating cash flow and FCF (TTM ~ $98M) plus Q1 operating cash flow ($38M) provide durable liquidity to fund transformation, capital needs, and debt reduction. Reliable cash conversion underpins financial flexibility even as earnings recover.

Clear transformation plan with realized savings

A defined $75M run-rate savings program with $40M already realized shows credible structural cost reduction. Sustained savings improve margins and cash flow over multiple quarters, reducing structural cost base and supporting longer-term profitability and deleveraging.

Near-term liquidity and deferred maturities

Meaningful available liquidity ($317M) and no debt maturities until 2028 lower short-term refinancing risk and provide runway to execute transformation and asset sales. This structural breathing room supports orderly deleveraging and strategic investments.

Negative Factors

Sharp TTM revenue decline and recent losses

A severe TTM revenue drop (~-74.6%) and return to negative net margin undermine operating leverage and long-term margin recovery. Structural revenue weakness makes sustainable profit restoration harder, pressuring reinvestment capacity and relying on cost cuts to bridge the gap.

Elevated leverage and negative returns

Higher leverage (D/E ~1.64) and negative ROE increase financial risk and interest burden, limiting strategic optionality. Elevated debt constrains capital allocation, heightens sensitivity to cash flow volatility, and lengthens the timeline to restore shareholder returns.

Deteriorating revenue quality from product mix

A persistent shift toward lower revenue-per-unit products reduces revenue quality and limits operating leverage even if volumes are stable. Structural mix changes can keep margins depressed and slow topline recovery, requiring sustained commercial adjustments to reverse.

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 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

Fundamentals are mixed: the income statement is pressured by a sharp TTM revenue decline (-74.6%) and a return to losses (net margin ~-1.5%), while cash flow is a bright spot with positive TTM operating cash flow and free cash flow (~$98M each). Balance-sheet risk is elevated with higher leverage (TTM debt-to-equity ~1.64) and negative ROE in the latest period.

Income Statement

TTM (Trailing-Twelve-Months) results show weakening fundamentals: revenue is down sharply (growth rate -74.6%) and the company remains unprofitable (net margin about -1.5%), despite still generating positive gross profit (gross margin ~25%). Profitability has deteriorated versus 2023–2024, when margins and net income were meaningfully stronger (2023 net margin ~7.5%; 2024 returned to a small profit). Overall, the income statement reflects pressure on demand and/or pricing plus reduced operating leverage, with only modest EBIT/EBITDA margins in the latest period.

Balance Sheet

Equity remains solid in absolute dollars (about $864M in TTM), but leverage has been volatile across periods. Debt-to-equity is elevated in TTM (~1.64) and was also high in 2023–2024, indicating a more leveraged capital structure than earlier years (2021–2022 were very lightly levered). Returns have followed earnings, with return on equity negative in TTM and 2025 annual, which reduces balance-sheet quality despite adequate asset and equity scale.

Cash Flow

Cash generation is a relative bright spot: TTM operating cash flow is positive (~$98M) and free cash flow is also positive (~$98M), with a very large reported free-cash-flow growth rate versus the prior annual period. That said, cash flow conversion has been inconsistent historically (very strong in 2024, much lower in 2025 and TTM), and profits are negative in the latest periods, which makes the sustainability of cash generation an area to monitor.

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	637.72M	638.59M	815.95M	855.07M	777.33M	690.94M
EBITDA	177.38M	190.97M	299.37M	362.01M	326.60M	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

• Technical Analysis Sentiment: Positive
• Last Price: 7.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 7.98 is above the 20-day moving average (MA) of 7.27, above the 50-day MA of 7.00, and above the 200-day MA of 5.86, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 29.67 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HRI	58 Neutral	$4.91B	4,598.13	0.06%	1.79%	19.40%	-120.47%
MGRC	58 Neutral	$2.84B	19.55	12.70%	1.79%	4.77%	-35.44%
VSTS	56 Neutral	$1.01B	-21.33	-4.55%	2.09%	-2.53%	-291.35%
WSC	54 Neutral	$4.02B	18.26	-5.65%	1.44%	-3.64%	867.62%
CTOS	50 Neutral	$1.65B	-66.85	-3.00%	―	7.39%	34.57%
ALTG	48 Neutral	$222.75M	-2.75	-160.65%	4.88%	-3.95%	-47.70%

Vestis Corporation Corporate Events

Vestis Corporation Appoints Interim CFO Amid Leadership Change

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 with the company, and she will remain in her role until the end of the year to ensure a smooth transition. Adam K. Bowen, Vice President of Financial Planning & Analysis, has been appointed as Interim Chief Financial Officer effective December 16, 2025. Bowen, who joined Vestis in February 2025, brings over 20 years of strategic finance experience and will serve until a permanent CFO is appointed. The company has engaged an executive search firm to find a permanent replacement. Vestis reaffirmed its fiscal year 2026 financial guidance, indicating confidence in its ongoing business transformation and strategic priorities.

The most recent analyst rating on (VSTS) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Vestis Corporation stock, see the VSTS Stock Forecast page.