Vestis Corporation (VSTS) - Stock Analysis
Last updated: May 10, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Clear 2026-05-12 earnings catalyst with EPS of $0.16 versus $0.09 expected, raised FY2026 adjusted EBITDA and free cash flow guidance, Q2 free cash flow of $45.6M, and management pointing to possible revenue growth return in Q4 FY2026. Stock confirmed the improvement with about 23% 21-day momentum.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong Liquidity ⢠Thin Margins ⢠Heavy Leverage VSTS has solid liquidity and cash generation, but thin margins, heavy leverage, and poor interest coverage make the earnings and balance sheet profile risky despite low sales and book-value multiples.
Price Behavior
Key Price Behavior Insights: ⢠Support holding ⢠Momentum fading ⢠Sharp volatility Support Level: $8.90-$9.00 Resistance Level: $9.70-$9.80 VSTS remains net positive over the last month, but fading momentum, repeated resistance near $9.70-$9.80, and sharp swings keep the chart fragile until it reclaims $9.80 and $10.19.
Sentiment & News
Key News Insights: ⢠Q2 release date ⢠Morning conference call ⢠No results disclosed Vestis said it will report fiscal Q2 2026 results on May 12 before the open and host an 8:30 a.m. ET conference call, signaling the next investor update with no new financials yet.
AI Summary
VSTS has shifted from a simple turnaround to a proof-of-execution story: positive cash flow and better margins are encouraging, but weak revenue quality, poor interest coverage, and high leverage mean the 2026-05-12 earnings print must show sustained margin/cash improvement without working-capital help to justify any re-rating.
Description
Vestis Corporation supplies uniform rental and workplace consumables across the United States and Canada, offering apparel ranging from standard workwear to protective and cleanroom garments alongside shoes, accessories and facility supplies such as restroom products, first-aid items, floor mats and linens. The company serves a diverse set of end markets including manufacturing, healthcare, food processing, hospitality, retail and automotive. Vestis was founded in 1936 and is headquartered in Roswell, Georgia.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| May 15 | May 22 | VSTS | Vestis Corporation | Clear 2026-05-12 earnings catalyst with EPS of $0.16 versus $0.09 expected, raised FY2026 adjusted EBITDA and free cash flow guidance, Q2 free cash flow of $45.6M, and management pointing to possible revenue growth return in Q4 FY2026. Stock confirmed the improvement with about 23% 21-day momentum. | Active | +0.0% |