Vestis Corporation (VSTS) Stock Analysis & Winston Score

Vestis Corporation rents and delivers uniforms, workwear, and workplace supplies to businesses across the United States and Canada. Its customers include restaurants, manufacturers, healthcare facilities, and other companies that need workers to wear branded or protective clothing. Vestis was spun off from Aramark in 2023, making it one of the largest standalone uniform services companies in North America.

The company earns revenue through long-term service contracts, charging customers a recurring weekly or monthly fee to supply, clean, and replace garments and facility products like mats and towels. Its scale and established delivery routes create some switching costs, since customers rely on consistent service and have signed multi-year agreements. However, Vestis faces stiff competition from larger rivals like Cintas and UniFirst, and its thin operating margin of around 3% leaves little room for error if costs rise or customers cancel contracts.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+109.5% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

15.9%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$50M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Vestis Corporation's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

21.1%

Thin — 21.1% gross margin

Operating Margin

4.2%

Thin — 4.2% operating margin

ROCE

2.5%

Weak — 2.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-1.6%

Shrinking sales (-1.6% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

3.6%

Thin free cash flow (3.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.30

Conservative — low debt load (0.30)

Interest Cover

0.97x

Dangerous — barely covers interest (1.0x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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