| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | — | 17.3x | Around median | |
Growth | 25 | -0.4% | 7.1% | Bottom tier | |
Quality | 33 | 4.6% | 4.5% | Bottom tier | |
Safety | 48 | 3.1x | 2.6x | Around median | |
Capital Return | 49 | 0.23% | 0.06% | Around median | |
Momentum | 95 | 187.7% | -1.6% | Top tier | |
Sentiment | 90 | 4 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
93% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Vestis Corporation operates in workplace supplies services through a route-based operating model and a network of approximately 120 to 125 market centers. The business economics depend on the volume of pounds processed, revenue generated per pound, and plant and delivery efficiency; the company is working to improve pricing and product mix, deepen engagement with existing customers, and eliminate contracts that do not meet required return thresholds. Its commercial drivers include direct sales, national accounts, field sales, cleanrooms, Canada, and other activities, with field sales remaining the only non-growing driver out of six during fiscal 2026 Q3.
Fiscal 2026 Q3 revenue was approximately $662 million, down 1.8% or approximately $12 million year over year; however, the decline narrowed to 0.3% after excluding the impact of a $10 million decrease in non-recurring lost and damaged merchandise revenue. Volume declined 4.5%, or approximately 22 million pounds, as the company exited low-quality business that generated an average of $0.55 in revenue per pound, while revenue per pound rose 3% to $1.42. Linen concentration also declined 6% year over year, reflecting a mix shift away from lower-margin workplace supplies.
Net income in fiscal 2026 Q3 rose to $11 million from a loss of $0.7 million in the comparable quarter, and reported earnings per share were $0.18 versus estimates of $0.11 and earnings of $0.05 in the comparable quarter. Adjusted earnings before interest, taxes, depreciation, and amortization were $80.9 million, an increase of approximately $15 million or 23% on an adjusted comparable basis, and the margin expanded to 12.2% from 9.8%. Reductions of approximately $15 million in cost of services and approximately $7 million in selling, general, and administrative expenses helped offset pressure from lower volume.
The average analyst price target is $10.75, with a neutral consensus and a wide target range between $7.50 and $14; the average target is below the 52-week range high of $16.90 and above its low of $3.98. The price-to-earnings multiple does not provide a positive valuation anchor because of the trailing-twelve-month fiscal 2026 loss, so valuation improvement is tied to demonstrating sustainable profitability and cash flow and a return to revenue growth, while the wide range of targets reflects significant disagreement over the success of the transformation.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Revenue declined 1.8% to approximately $662 million, but Vestis eliminated low-quality volumes that generated an average of only $0.55 per pound. In contrast, revenue per pound rose 3% to $1.42, while cost per pound remained unchanged at $1.24. Cost of services also declined by approximately $15 million and selling, general, and administrative expenses by approximately $7 million, raising net income to $11 million and expanding the adjusted earnings before interest, taxes, depreciation, and amortization margin to 12.2%.
Processed volume declined 4.5%, or approximately 22 million pounds, in fiscal 2026 Q3, but the exited volume generated average revenue of $0.55 per pound. Total cost per pound was $1.24, illustrating why those contracts were considered low quality. As a result of mix and pricing improvements, linen concentration declined 6% year over year and revenue per pound increased by $0.04.
Automated analysis for informational purposes only — not investment advice.
Management stated on August 11, 2026, that five of the six growth drivers were growing, while field sales remained without growth. The Market Development Representative program focuses on the non-national segment, which represents approximately half of targeted revenue, as well as improving contractual price increases and deepening engagement with existing customers. Only approximately 30% of the targeted representative headcount was operating within the model in fiscal 2026 Q3, while management said their average weekly revenue was approximately twice the productivity of a newly hired salesperson previously.
Net debt was $1.2 billion and bank debt principal was $1.1 billion at the end of fiscal 2026 Q3. The company repaid $30 million of its term loan during the quarter, supported by $65 million of operating cash flow and $47 million of free cash flow. Available liquidity was $352 million, including $294 million of undrawn revolving facility capacity and $58 million of cash, with no debt maturities until 2028.
Analyst consensus on VSTS is neutral, with an average price target of $10.75. The lowest target is $7.50 and the highest is $14, compared with a 52-week range of $3.98 to $16.90. This divergence indicates differing estimates of Vestis's ability to convert margin expansion and cash flow into sustainable growth, particularly given the trailing-twelve-month fiscal 2026 loss despite profitability in fiscal 2026 Q3.