Is the business good?
How good a business is VSTS?
Vestis Corporation earns 3.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
3.5%
Return on invested capital · cost of capital 9.0% · 5.5 points below what the capital costs: growth destroys value
- Operating margin
- 3.2%
Operating margin · Rental & Leasing Services median 7.9% · 12 months to Q2 2026
- Share count, year on year
- +0.99%
Share count, year on year · flat: no meaningful dilution
- Gross margin
- 26%
Gross margin
| Year | Operating margin |
|---|---|
| FY2022 | 7.1% |
| FY2023 | 7.7% |
| FY2024 | 5.6% |
| FY2025 | 2.4% |
Details›
- Gross margin12 months to Q2 2026
- 26%
- Operating margin12 months to Q2 2026
- 3.2%
- Net margin12 months to Q2 2026
- −0.63%
- Free cash flow margin
- 3.6%
- Revenue, trailing twelve months
- $2.71B
- Free cash flow, trailing twelve months
- $97M
- Net income, trailing twelve months
- −$17M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Rental & Leasing Services
Ranks #2 of 15 by Smart Score