Vestis Corporation Common Stock (VSTS)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable competitive advantages, conservative balance sheets, and clear earnings power. Vestis rents uniforms and workplace supplies—restroom services, mats, first-aid, safety products—to a broad industrial base. That can be sticky, route-density business. But the numbers do not yet prove a moat. Revenue growth is -2.98%, ROCE is only 2.45%, and ROE is -0.60%. The Lynch category is TURNAROUND because fiscal 2025 produced a loss after earlier profits: net income was $213.2M in FY2023, $21.0M in FY2024, and -$40.2M in FY2025, all per filed figures. The latest filed quarter, fiscal Q3 2026 ended 2026-07-03, was better: revenue $661.7M, net income $11.0M, diluted EPS $0.08, though revenue fell from $673.8M in fiscal Q3 2025. At the 2026-10-13 close of $14.31, FairStock calculates a negative P/E of -286.20, P/B 2.16, EV/EBITDA 14.25, and FCF yield of 7.2% on $136.4M trailing free cash flow. The cash generation is real and Piotroski 8/9 suggests improvement, but Altman Z 1.03, D/E 1.53, and a FairStock Score of 28/100 warn of leverage and weak quality. I see a low-return, leveraged turnaround priced at a full multiple. Without evidence that revenue stabilizes and margins widen, there is no obvious Graham margin of safety. The dividend yield of 1.75% is not enough compensation for weak earnings power.

In plain English: Vestis rents uniforms and workplace supplies such as restroom items, mats, safety gear and first-aid products to businesses in the U.S. and Canada. The business looks weak on profits: it lost money in fiscal 2025, sales are shrinking, and the money it makes from operations is low. The price does not look clearly cheap, though the company does produce cash and recent quarters show a small profit.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-03) · fiscal Q2 2026 10-Q (period ended 2026-04-03) · fiscal Q1 2026 10-Q (period ended 2026-01-02) · fiscal Q3 2025 10-Q (period ended 2025-06-27) · FY2025 10-K (period ended 2025-10-03) · FY2024 10-K (period ended 2024-09-27) · FY2023 10-K (period ended 2023-09-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer