Vestis (VSTS)
NYSEIndustrialsRental & Leasing ServicesSnapshot 2026-09-09
$13.12-3.88%
Close 2026-09-09 · 1-day change
NYSEIndustrialsRental & Leasing ServicesSnapshot 2026-09-09
Broken: Recent financial performance freshly dropped to the bottom half of its industry.
Vestis beat earnings with EPS of $0.16 last quarter. Free cash flow is expected near $135 million in 2026. The company keeps paying a steady dividend of $0.035 per share. These show signs of financial improvement.
Revenue fell 0.9% last quarter, showing weak sales. The stock trades at a very high PE of 107.3. Leadership changes may hurt execution and growth.
The price is about 42% above our fair value near $9.8. Analysts expect only about 1% revenue growth. We think the stock is too expensive for its slow growth.
Breaks if: Dividend per share falls below $0.035
Breaks if: EPS falls below $0.49 in FY26
Breaks if: FCF falls below $120 million in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on strategic transformation and profitability improvement. However, the current thesis state is weakened due to recent performance and market conditions.
The market currently prices VSTS at an expensive valuation compared to its peers, reflecting a durable premium. There is an expectations gap indicating that the market anticipates some challenges ahead.
Management is making progress with its strategic business transformation plan, aiming for significant cost savings. However, the company remains loss-making and faces elevated risks, particularly with recent erratic earnings surprises.
The future performance of VSTS hinges on the guidance from management in the upcoming earnings call and the performance of sector bellwethers like URI, SUNB, and UHAL. Positive or negative movements in these companies could significantly impact VSTS.
The most important moves since the prior daily snapshot.
Company momentum rose by 25.0 points (from 32.2 to 57.2).
Yes, our read has weakened. Recent financial performance dropped from the robust to the weak half of its sector. This change indicates a decline in the reasons to own the stock. The latest earnings beat and raised cash flow outlook do provide some support, but the overall thesis has weakened.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
In the next 1-3 years, VSTS's trajectory will depend on management's execution of its transformation plan and external market conditions. Not investment advice.