Vestis Corporation (VSTS) AI Stock Analysis

NYSE: VSTSAI research summary: business, growth, valuation, analysts, bull and bear case.

VSTS AI stock analysis summary

AI Research

Vestis Corporation provides uniform rentals and workplace essentials across North America. The company generated $2.70B in trailing twelve-month revenue, but net income declined to -$40.2M in FY2025. Despite recent operational headwinds, the stock has gained 188.6% over the past year.

Market cap
$1.83B
Revenue (TTM)
$2.70B
P/E
—
1Y return
188.6%
S&P 500 16.8%
Avg. target
$13.00
-6.3% vs last close

Bull case

  • Vestis delivered strong momentum with a 1-year stock return of 188.6%, well ahead of the broader market.
  • Analysts project current fiscal year EPS growth of 145.0% to reach $0.61.
  • The stock trades at a price-to-sales multiple of 0.7x, compared to the peer median of 1.5x.

Bear case

  • Vestis swung to a net loss of -$40.2M in FY2025, with net margins dropping to -1.5%.
  • Net debt stands at $1.28B against a cash balance of just $57.7M as of June 30, 2026.
  • Quarterly earnings fell 93.0% year-over-year in the latest quarter ended June 30, 2026.

What Vestis does

Vestis Corporation provides uniform rentals and workplace supplies throughout the United States and Canada. Established in 1936 and headquartered in Roswell, Georgia, the company serves industries including manufacturing, hospitality, retail, food processing, healthcare, automotive, and cleanrooms. Its product portfolio features shirts, pants, outerwear, gowns, scrubs, high-visibility and flame-resistant garments, footwear, and accessories. In addition, Vestis supplies managed restroom services, first-aid kits, safety products, floor mats, towels, and linens to enhance workplace safety, hygiene, and efficiency across North America.

Growth and profitability

Vestis posted a 5-year revenue CAGR of 1.3% from FY2020 to FY2025. Annual revenue reached $2.83B in FY2023 before contracting to $2.81B in FY2024 and $2.73B in FY2025. Net margin contracted from 7.5% in FY2023 to -1.5% in FY2025, when the company posted a net loss of -$40.2M. Gross margin also fell to 26.5% in FY2025 from 30.3% in FY2023. Over the trailing twelve months, revenue totaled $2.70B with an operating margin of 5.9% and an EPS of -$0.05. In the quarter ended June 30, 2026, revenue decreased 1.8% year-over-year, while quarterly earnings dropped 93.0%.

VSTS income statement →

Balance sheet and cash flow

As of June 30, 2026, Vestis held $57.7M in cash and short-term investments against total debt of $1.34B, resulting in net debt of $1.28B and a debt-to-equity ratio of 1.53. Shareholders' equity stood at $877.7M, and the current ratio was 2.17. Operating cash flow totaled $64.2M in FY2025, generating $5.8M in free cash flow after $58.5M in capital expenditures. During FY2025, the company also paid $13.8M in dividends.

VSTS balance sheet →

Valuation and performance

At $13.88 per share, Vestis trades at a price-to-sales ratio of 0.7x, below the median of its US-listed Industrials peers of 1.5x. Its EV-to-EBITDA stands at 14.0x, compared to the peer median of 13.9x. The stock has delivered a 1-year return of 188.6%, significantly outperforming the S&P 500 (SPY) return of 16.8% over the same period.

VSTS key metrics →

What analysts expect

Wall Street analysts hold mixed views on Vestis, with 2 Strong Buy, 0 Buy, 3 Hold, 2 Sell, and 1 Strong Sell ratings. The mean price target of $13.00 implies a 6.3% decrease from the last close of $13.88. For the fiscal year ending September 30, 2026, analysts estimate EPS of $0.61 on revenue of $2.65B. The company has beat EPS estimates in 2 of the last 4 quarters, with its next earnings report scheduled for December 7, 2026.

VSTS forecast and price target →

Key risks and what to watch

  • Leverage remains elevated with total debt of $1.34B and a debt-to-equity ratio of 1.53.
  • Annual free cash flow declined from $392.9M in FY2024 to $5.8M in FY2025.
  • Revenue growth remains negative, with sales falling 1.8% year-over-year in the quarter ended June 30, 2026.
  • Short interest stands at 11.7% of the float, reflecting negative sentiment among some market participants.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this VSTS AI stock analysis

This page is an AI-written research summary of Vestis Corporation (VSTS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: VSTS income statement, VSTS balance sheet, VSTS key metrics, VSTS analyst forecast, VSTS chart. See the VSTS stock overview for the latest quote and news.

VSTS AI stock analysis FAQ

What is Vestis Corporation's core business?

Vestis Corporation provides uniform rentals and workplace essentials, including safety gear, managed restroom supplies, floor mats, and linens, across the United States and Canada.

What are analysts forecasting for Vestis?

Analysts project full-year EPS of $0.61 on revenue of $2.65B for the fiscal year ending September 30, 2026. The average analyst price target is $13.00, which sits 6.3% below the closing price of $13.88.

How leveraged is Vestis' balance sheet?

As of June 30, 2026, Vestis carried $1.34B in total debt and $57.7M in cash, resulting in net debt of $1.28B and a debt-to-equity ratio of 1.53.

When does Vestis report its next quarterly earnings?

The company is scheduled to report its next earnings on December 7, 2026.

More Industrials AI stock analysis