Vestis Corporation (VSTS) AI Stock Analysis

• Market Cap: $984.34M
• Dividend Yield: 2.09%
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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: 2.41
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 3.36
• Enterprise Value/Ebitda: 13.39
• 1Y Price Target: $8.08
• Price Target Upside: 5.62% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.39
• Revenue Forecast (FY): $2.65B

• Rating: 55 Neutral
• Price Target: $7.50 ▼(-1.96% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 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.

Clear transformation plan with measurable targets

A defined savings roadmap and disclosed in-year delivery indicate credible management action. Realized savings and guidance for sequential EBITDA improvement create a structural path to margin recovery and deleveraging, meaningfully improving the company's medium-term operating leverage if execution continues as planned.

Diversified revenue model (hardware + subscriptions)

A multi-channel model combining product sales, recurring subscriptions and partner distribution supports revenue resilience and customer retention. The hardware-plus-software ecosystem enables cross-sell, recurring revenue growth and margin expansion opportunities over several quarters as software adoption increases.

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.

Elevated leverage and sizable net debt

Higher leverage increases interest expense sensitivity and reduces strategic flexibility, particularly while profitability is weak. Although liquidity and no near-term maturities mitigate immediate stress, the company will need sustained cash flow or asset sales to de-lever, making balance-sheet risk a medium-term constraint.

Unfavorable product mix pressuring revenue quality and margins

A structural shift toward lower-revenue-per-unit, higher-cost products undermines the company's ability to convert volume into revenue and margins. If mix dynamics persist, plant costs and margin recovery will be constrained, requiring product repositioning or pricing changes to restore sustainable profitability.

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

Overall fundamentals are mixed: the income statement is weak with sharply lower TTM revenue growth (-74.6%) and negative profitability (net margin ~-1.5%), while leverage is elevated (TTM debt-to-equity ~1.64). Offsetting this, cash generation is a relative strength with positive TTM operating cash flow (~$98M) and free cash flow (~$98M), though sustainability bears monitoring given recent losses.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 7.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.65 is above the 20-day moving average (MA) of 7.39, above the 50-day MA of 7.02, and above the 200-day MA of 5.87, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 54.93 is Neutral, neither overbought nor oversold. The STOCH value of 13.83 is Positive, 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
MGRC	70 Outperform	$2.82B	19.38	12.70%	1.79%	4.77%	-35.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HRI	58 Neutral	$4.96B	4,643.44	0.06%	1.79%	19.40%	-120.47%
VSTS	55 Neutral	$984.34M	-21.25	-4.55%	2.09%	-2.53%	-291.35%
WSC	51 Neutral	$4.29B	-72.51	-5.65%	1.44%	-3.64%	867.62%
CTOS	50 Neutral	$1.70B	-66.76	-3.00%	―	7.39%	34.57%
ALTG	48 Neutral	$222.75M	-2.62	-160.65%	4.88%	-3.95%	-47.70%

Vestis Corporation Corporate Events

Vestis Shareholders Approve Directors, Pay and Auditor

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, Mary Anne Whitney and Ena Williams—to serve until the 2027 annual meeting, with Jokinen and Whitney receiving strong support and Williams facing a higher, though not majority, level of opposition.

Investors also approved, on an advisory basis, the compensation program for the company’s named executive officers, signaling broad shareholder backing of current pay practices. In addition, shareholders ratified Deloitte & Touche LLP as Vestis Corporation’s independent registered public accounting firm for the fiscal year ending October 2, 2026, ensuring continuity in external financial oversight and audit assurance for stakeholders.

The most recent analyst rating on (VSTS) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Vestis Corporation stock, see the VSTS Stock Forecast page.

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.