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VSTS Stock Risk & Deep Value Analysis

Vestis Corp

Industrials โ€ข Rental & Leasing Services

DVR Score

1.8

out of 10

Distressed

The Bottom Line on VSTS

We analyzed Vestis Corp using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran VSTS through our deep value framework โ€” analyzing financial health, distress signals, competitive moat, and risk factors. Here's what we found.

Updated May 3, 2026โ€ขRun Fresh Analysis โ†’

๐Ÿ“ˆVSTS Performance Overview3yr weekly

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Weekly adjusted close ยท Quarterly revenue & EPS ยท DVR score history

VSTS Stock Risk Analysis

Overall Risk

Aggressive

Financial Risk

High

Market Risk

Low

About Vestis Corp (VSTS)

Sector

Industrials

Industry

Rental & Leasing Services

Market Cap Category

small

Market Cap

$1.28B

VSTS Deep Value Analysis

Vestis Corp operates in a mature, low-growth industry, fundamentally lacking the disruptive innovation or scalable business model required for 10x growth within 3-5 years. While Q1 2026 saw significant positive free cash flow generation and improved operating cash flow, enhancing financial stability, this primarily supports debt reduction and operational efficiency rather than exponential expansion. Revenue continues to decline YoY, and analysts maintain a 'Strong Sell' rating with price targets significantly below the current share price. The company's competitive advantages (route density, customer stickiness) are strong for stability but do not drive rapid market share gains or high-growth catalysts. Valuation appears stretched given the negative net income and revenue trajectory.

VSTS Red Flags & Warning Signs

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  • โš 

    Failure to meet Q2 2026 earnings expectations (EPS $0.09, revenue $655.32M)

  • โš 

    Continued year-over-year revenue decline

  • โš 

    Rising interest rates increasing debt servicing costs

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VSTS Financial Health Metrics

Market Cap

$1.28B

P/E Ratio

-27.55

Profit Margin

-1.75%

Debt-to-Equity

1.53

Dividend Yield

1.04%

Beta (Volatility)

1.01

Earnings Per Share

$-0.36

VSTS Competitive Moat Analysis

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Moat Rating

Narrow

Moat Trend

Stable

Moat Sources

3 Identified

Switching CostsCost AdvantagesEfficient Scale

Vestis benefits from inherent structural moats in the uniform and facility services industry. Customers face switching costs due to contract complexities, logistics, and established service relationships. The extensive route density allows for cost advantages. These moats provide a defensible business but do not facilitate rapid growth or disruption.

VSTS Competitive Moat Analysis

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VSTS Catalysts & Growth Drivers

Near-Term (0-6 months)

  • โ€ขQ2 2026 Earnings Report (May 12, 2026)
  • โ€ขContinued operational efficiency improvements

Medium-Term (6-18 months)

  • โ€ขFurther debt reduction below 3.0x leverage target
  • โ€ขStabilization of revenue trends

Long-Term (18+ months)

  • โ€ขNo clear long-term 10x growth catalysts identified
  • โ€ขPotential industry consolidation (as an acquirer or target, highly speculative)

Catalysts & Growth Drivers

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VSTS Bull Case: What Could Go Right

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    Sustained acceleration in revenue growth (indicating a market pivot or new strategy)

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    Significant reduction in total debt and leverage ratio (improving financial flexibility)

Bull Case Analysis

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FAQ

What is the DVR Score for Vestis Corp (VSTS)?

As of May 3, 2026, Vestis Corp has a DVR Score of 1.8 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.

What is the market capitalization of Vestis Corp?

Vestis Corp's market capitalization is approximately $1.3B. The company operates in the Industrials sector within the Rental & Leasing Services industry.

What ticker symbol does Vestis Corp use?

VSTS is the ticker symbol for Vestis Corp. The company trades on the NYQ.

What is the risk level for VSTS stock?

Our analysis rates Vestis Corp's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.

What is the P/E ratio of VSTS?

Vestis Corp currently has a price-to-earnings (P/E) ratio of -27.6. This is below the market average, which could indicate the stock is undervalued or facing headwinds.

Does Vestis Corp pay a dividend?

Yes, Vestis Corp pays a dividend with a current yield of approximately 1.04%.

Is Vestis Corp's revenue growing?

Vestis Corp has reported revenue growth of -2.5%. Revenue has been declining, which warrants closer examination.

Is VSTS stock profitable?

Vestis Corp has a profit margin of -1.8%. The company is currently unprofitable.

How often is the VSTS DVR analysis updated?

Our AI-powered analysis of Vestis Corp is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 3, 2026.

Important Disclaimer โ€“ Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research and consult with a qualified financial advisor.