Vestis Corporation (VSTS) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Vestis Corporation (VSTS) Industrial Operations Profile

Vestis Corporation, established in 1936, offers uniform rental and workplace supplies across the US and Canada. With a focus on diverse sectors, including manufacturing and healthcare, Vestis provides specialized garment and supply solutions, differentiating itself through comprehensive service offerings and established market presence.

What Is the Investment Thesis for VSTS?

Vestis Corporation presents a mixed investment thesis. With a market capitalization of $1.72B, the company operates in a stable sector, providing essential uniform and workplace supplies. However, its negative profit margin of -1.7% raises concerns about profitability. The company's beta of 0.60 suggests lower volatility compared to the broader market. Key value drivers include Vestis' established presence in diverse industries and its comprehensive service offerings. Upcoming catalysts include potential efficiency improvements and expansion into new geographic areas. Investors should closely monitor the company's ability to improve its profit margins and manage operational costs to fully realize its growth potential.

Based on FMP financials and quantitative analysis

VSTS Key Highlights

Market capitalization of $1.72B, reflecting its established position in the rental and leasing services sector.

• Gross margin of 26.1%, indicating the profitability of its core services before operating expenses.
• Employs 19,600 individuals, highlighting the scale of its operations across the United States and Canada.
• Beta of 0.60, suggesting lower volatility compared to the broader market, which may appeal to risk-averse investors.
• Serves a diverse range of industries, including manufacturing, hospitality, retail, and healthcare, reducing reliance on any single sector.

Who Are VSTS's Competitors?

VSTS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are VSTS's Key Strengths?

Established market presence in the US and Canada.

• Diverse customer base across multiple industries.
• Comprehensive service offerings, including rental, laundering, and maintenance.
• Recurring revenue through long-term contracts.

What Are VSTS's Weaknesses?

Negative profit margin (-1.7%) indicating profitability concerns.

• Dependence on economic cycles and industry-specific demand.
• Potential for high operating costs associated with laundering and maintenance.
• Limited geographic diversification.

What Could Drive VSTS Stock Higher?

Implementation of new technologies to streamline operations and improve efficiency.

• Expansion into new geographic markets to increase customer base and revenue.
• Development and marketing of sustainable and eco-friendly products to attract environmentally conscious customers.
• Strategic acquisitions of smaller regional players to expand market share and geographic reach.

What Are the Key Risks for VSTS?

Financial-distress signal — its Altman Z-Score of 1.75 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-0.6%) — the business is not currently generating profit on shareholder capital.
• Economic downturns impacting demand from key industries.
• Intense competition from larger national players.
• Rising costs of labor, materials, and energy.
• Changes in regulations and compliance requirements.
• Disruptions in the supply chain affecting the availability of uniforms and supplies.

What Are the Growth Opportunities for VSTS?

• Expansion into New Geographic Markets: Vestis can explore expanding its services into underserved geographic regions within the United States and Canada. By targeting areas with growing industrial and commercial activity, Vestis can increase its customer base and revenue streams. This expansion could involve establishing new distribution centers and service hubs to ensure efficient service delivery. The market size for untapped regions could represent a significant growth opportunity, potentially adding millions in annual revenue within the next 3-5 years.
• Enhancement of Digital Service Offerings: Investing in digital platforms and online ordering systems can improve customer experience and streamline operations. By offering online portals for uniform selection, ordering, and account management, Vestis can enhance customer convenience and reduce administrative costs. The market for digital solutions in the rental and leasing services sector is growing, with companies increasingly adopting technology to improve efficiency and customer satisfaction. This initiative could lead to increased customer retention and new customer acquisition.
• Development of Sustainable and Eco-Friendly Products: There is a growing demand for sustainable and eco-friendly uniform and workplace supply options. Vestis can capitalize on this trend by developing and offering products made from recycled materials or designed for durability and longevity. By marketing these products as environmentally responsible choices, Vestis can attract environmentally conscious customers and differentiate itself from competitors. The market for sustainable products is expanding, driven by increasing awareness of environmental issues and corporate social responsibility initiatives.
• Strategic Acquisitions of Smaller Regional Players: Vestis can pursue strategic acquisitions of smaller regional uniform rental and workplace supply companies to expand its market share and geographic reach. By acquiring companies with established customer bases and local expertise, Vestis can quickly integrate new markets and increase its revenue. The rental and leasing services sector is fragmented, with numerous smaller players that could be attractive acquisition targets. This strategy could accelerate Vestis' growth and enhance its competitive position.
• Customized Service Packages for Specific Industries: Vestis can develop customized service packages tailored to the specific needs of different industries, such as healthcare, manufacturing, and hospitality. By offering specialized uniform and supply solutions that address the unique requirements of each sector, Vestis can increase customer satisfaction and loyalty. This approach could involve collaborating with industry experts to design products and services that meet specific regulatory and operational needs. The market for customized solutions is growing, as companies seek to optimize their operations and improve efficiency.

What Are VSTS's Competitive Advantages?

• Established presence in the uniform rental and workplace supply market.
• Long-term contracts with diverse customer base providing recurring revenue.
• Comprehensive service offerings, including rental, laundering, and maintenance.
• Strong relationships with suppliers and manufacturers.

What Does VSTS Do?

Vestis Corporation, founded in 1936, has established itself as a provider of uniform rental and workplace supplies across the United States and Canada. Headquartered in Roswell, Georgia, the company offers a wide array of products, including 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. Additionally, Vestis provides workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens. Vestis serves a diverse range of industries, including manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries. The company's comprehensive service offerings and established market presence have allowed it to maintain a significant foothold in the competitive rental and leasing services sector. Vestis manages its operations to provide reliable and consistent service to its customer base, focusing on quality and compliance within the industries it serves. With a workforce of 19,600 employees, Vestis continues to adapt its offerings to meet the evolving needs of its clients.

What Products and Services Does VSTS Offer?

• Provides uniform rental services for various industries.
• Offers a range of uniform options, including shirts, pants, and outerwear.
• Supplies specialized garments like scrubs, high visibility garments, and flame-resistant garments.
• Provides workplace supplies, including restroom supplies and first-aid products.
• Offers floor mats, towels, and linens for businesses.
• Serves industries such as manufacturing, hospitality, and healthcare in the US and Canada.

How Does VSTS Make Money?

• Generates revenue through uniform rental and leasing agreements.
• Earns income from the sale of workplace supplies and related services.
• Focuses on recurring revenue through long-term contracts with businesses.
• Provides laundering and maintenance services for rented uniforms.

What Industry Does VSTS Operate In?

Vestis Corporation operates within the rental and leasing services industry, which is characterized by steady demand and recurring revenue streams. The market is influenced by economic cycles and the operational needs of various sectors, including manufacturing, healthcare, and hospitality. The competitive landscape includes both large national players and smaller regional providers. Vestis differentiates itself through its comprehensive service offerings and established presence across diverse industries. The industry is expected to see moderate growth, driven by increasing demand for specialized uniform and workplace supply solutions. Vestis' ability to maintain and expand its market share will depend on its operational efficiency and customer service capabilities.

Who Are VSTS's Key Customers?

• Manufacturing companies requiring specialized uniforms.
• Hospitals and healthcare facilities needing scrubs and gowns.
• Restaurants and food service businesses needing uniforms and linens.
• Retail businesses requiring employee uniforms.
• Automotive and cleanroom industries needing specialized garments.

Company Profile

Vestis Corporation operates in the Rental & Leasing Services industry within the Industrials sector. It is headquartered in Roswell, US. The company is led by CEO Jim Barber. VSTS has traded publicly since 2023.

Vestis Corporation Financial Trajectory

Vestis Corporation (VSTS) reported $661.7M in revenue for Q3 FY2026, reflecting 0.3% growth compared to the prior quarter. The company recorded net income of $11.0M, with diluted EPS of $0.08. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Industrials. Across the four most recent quarters, VSTS averaged $-0.01 in diluted EPS.

How Vestis Corporation Is Valued

Vestis Corporation carries a market capitalization of $1.72B, placing it in the small-cap category. Analyst price targets span from $7.50 to $14.00, with a consensus of $10.75. At the current price of $13.04, that implies roughly 18% downside from the consensus target. Relative to its peer group, VSTS's quantitative score of 34/100 is below the peer average of 69/100.

Return on equity for Vestis Corporation stands at -0.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -0.2%, showing how much profit it generates from its asset base. Its free cash flow yield is 8.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.17 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -0.3%, the inverse of the P/E and a quick read on earnings relative to price.

Vestis Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.75 places it in the distress zone, a signal of elevated financial risk.

Vestis Corporation has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 5.8% above estimates on average.

Over the past six months, Vestis Corporation insiders filed 2 SEC Form 4 transactions — 1 sales and 1 purchases. On net that is roughly 80K shares acquired (about $986K) — insiders putting money in tends to read as conviction.

VSTS Financials

VSTS Latest News

VSTS Analyst Consensus

VSTS MoonshotScore

Common Questions About VSTS (Industrials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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