📊 VSTS Key Takeaways
Is Vestis Corp (VSTS) a Good Investment?
Vestis Corp is facing significant operational deterioration with declining revenue (-2.5% YoY), negative and worsening net income (-$3.8M, -291.8% YoY), and critically insufficient interest coverage (0.5x) indicating the company cannot service its $1.1B debt load from operating earnings. Despite positive free cash flow, the fundamental profitability collapse and high leverage (1.29x D/E) present material solvency risks.
Vestis Corp Key Strengths (VSTS)
- Positive free cash flow of $73.9M with 5.6% FCF margin
- Strong liquidity with current ratio of 2.13x and quick ratio of 1.69x
- Positive operating income of $43.4M despite revenue pressures
VSTS Stock Risks: Vestis Corp Investment Risks
- Critical interest coverage ratio of 0.5x - insufficient operating income to cover debt obligations
- Net income negative at -$3.8M with severe YoY deterioration of -291.8%
- Revenue declining YoY at -2.5% with negative net and operating margins deteriorating
- High leverage of 1.29x debt-to-equity with $1.1B long-term debt against only $50.3M cash
- Negative return on equity (-0.4%) and return on assets (-0.1%)
Key Metrics to Watch
- Interest coverage ratio trend - must move above 1.0x to reduce default risk
- Revenue stabilization and return to growth - current declining trend unsustainable
- Free cash flow sustainability - positive FCF may be required to refinance debt
- Debt refinancing activities and covenant compliance status
Vestis Corp (VSTS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.13x 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 |
|---|---|---|---|
| Q2 2026 | $659.4M | $832.0K | $0.02 |
| 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 grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VSTS's key strengths?
Claude: Positive free cash flow of $73.9M with 5.6% FCF margin. Strong liquidity with current ratio of 2.13x and quick ratio of 1.69x.
What are the risks of investing in VSTS?
Claude: Critical interest coverage ratio of 0.5x - insufficient operating income to cover debt obligations. Net income negative at -$3.8M with severe YoY deterioration of -291.8%.
What is VSTS's revenue and growth?
Vestis Corp reported revenue of $1.3B.
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 $-0.03.
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 grade reflects both perspectives for balanced insights.
What is VSTS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Vestis Corp has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is VSTS stock overvalued or undervalued?
Valuation metrics for VSTS: ROE of -0.4% (sector avg: 15%), net margin of -0.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is VSTS's AI grade for 2026?
Our dual AI analysis gives Vestis Corp a combined C grade 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 $95.9M, with capital expenditures of $22.1M. FCF margin is 5.6%.
How does VSTS compare to other Market stocks?
Vs Default sector averages: Net margin -0.3% (avg: 12%), ROE -0.4% (avg: 15%), current ratio 2.13 (avg: 1.8).