📊 VSTS Key Takeaways
Is Vestis Corp (VSTS) a Good Investment?
Vestis Corp faces critical financial distress with an interest coverage ratio of 0.2x, indicating severe inability to service debt from operations. The company is unprofitable (net margin -1.0%), revenues are declining, and carries $1.1B in debt against only $41.5M in cash reserves. Without immediate operational improvement or debt restructuring, the company's financial sustainability is highly questionable.
Why Buy Vestis Corp Stock? VSTS Key Strengths
- Positive free cash flow of $28.3M demonstrates underlying cash generation capability
- Healthy liquidity ratios (Current: 2.17x, Quick: 1.74x) provide near-term working capital coverage
- Positive operating income of $16.6M shows core operations generate profits before financing costs
VSTS Stock Risks: Vestis Corp Investment Risks
- Interest coverage ratio of 0.2x is critical - company cannot cover interest from operating income
- Negative net margin (-1.0%) with recent deterioration to net loss (-$6.4M, -291.8% YoY)
- Revenue declining 2.5% YoY with thin operating margins (2.5%) indicating competitive pressure
- Insufficient cash ($41.5M) relative to debt obligations ($1.1B) creates acute refinancing risk
- Debt/equity of 1.33x with no equity cushion to absorb losses
Key Metrics to Watch
- Interest coverage ratio - must reach 1.5x+ for operational viability
- Operating margin expansion - unsustainable at current 2.5% given leverage
- Free cash flow adequacy - FCF margin must exceed 10% to reliably service debt
- Revenue trend reversal and path to profitability
- Debt reduction progress and refinancing outcomes
Vestis Corp (VSTS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.17x current ratio provides a solid financial cushion.
VSTS Profit Margin, ROE & Profitability Analysis
VSTS vs Market Sector: How Vestis Corp Compares
How Vestis Corp compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Vestis Corp Stock Overvalued? VSTS Valuation Analysis 2026
Based on fundamental analysis, Vestis Corp shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Vestis Corp Balance Sheet: VSTS Debt, Cash & Liquidity
VSTS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Vestis Corp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $1.63 reflects profitable operations.
VSTS Revenue Growth, EPS Growth & YoY Performance
VSTS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $663.4M | $832.0K | $0.01 |
| Q3 2025 | $673.8M | -$676.0K | $-0.01 |
| Q2 2025 | $665.2M | $832.0K | $0.05 |
| Q1 2025 | $683.8M | $832.0K | $0.01 |
| Q3 2024 | $698.2M | $5.0M | $0.04 |
| Q2 2024 | $699.3M | $6.0M | $0.05 |
| Q1 2024 | $700.7M | $12.3M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Vestis Corp Dividends, Buybacks & Capital Allocation
VSTS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Vestis Corp (CIK: 0001967649)
📋 Recent SEC Filings
❓ Frequently Asked Questions about VSTS
What is the AI rating for VSTS?
Vestis Corp (VSTS) has an AI rating of STRONG SELL with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VSTS's key strengths?
Claude: Positive free cash flow of $28.3M demonstrates underlying cash generation capability. Healthy liquidity ratios (Current: 2.17x, Quick: 1.74x) provide near-term working capital coverage.
What are the risks of investing in VSTS?
Claude: Interest coverage ratio of 0.2x is critical - company cannot cover interest from operating income. Negative net margin (-1.0%) with recent deterioration to net loss (-$6.4M, -291.8% YoY).
What is VSTS's revenue and growth?
Vestis Corp reported revenue of $663.4M.
Does VSTS pay dividends?
Vestis Corp does not currently pay dividends.
Where can I find VSTS SEC filings?
Official SEC filings for Vestis Corp (CIK: 0001967649) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VSTS's EPS?
Vestis Corp has a diluted EPS of $-0.05.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is VSTS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Vestis Corp has a STRONG SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is VSTS stock overvalued or undervalued?
Valuation metrics for VSTS: ROE of -0.7% (sector avg: 15%), net margin of -1.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy VSTS stock in 2026?
Our dual AI analysis gives Vestis Corp a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VSTS's free cash flow?
Vestis Corp's operating cash flow is $37.7M, with capital expenditures of $9.4M. FCF margin is 4.3%.
How does VSTS compare to other Market stocks?
Vs Default sector averages: Net margin -1.0% (avg: 12%), ROE -0.7% (avg: 15%), current ratio 2.17 (avg: 1.8).