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A Look At Vestis (VSTS) Valuation After Cost Driven Q1 2026 Earnings Beat And Guidance Reaffirmation

Simply Wall St·02/14/2026 17:27:31
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Vestis (VSTS) just reported its first quarter 2026 results, with revenue slightly below expectations and down from a year earlier, while adjusted earnings came in ahead of forecasts due to tighter cost control.

See our latest analysis for Vestis.

The earnings beat and reaffirmed guidance have arrived after a volatile stretch for shareholders. A 90 day share price return of 44.19% and year to date gain of 17.02% contrast with a 1 year total shareholder return decline of 43.61%, suggesting short term momentum is improving while longer term holders remain under pressure.

If this kind of turnaround story has your attention, it could be a good moment to broaden your search and check out our screener of 23 top founder-led companies as potential next ideas to research.

With Vestis trading at $7.70, carrying a value score of 5, a 60% intrinsic discount flag and only a small gap to the average analyst target, you have to ask yourself whether there is still a mispricing here or whether the market is already factoring in future improvement.

Most Popular Narrative: 3.7% Undervalued

Vestis closed at $7.70 compared to a widely followed fair value narrative of $8.00, which reflects a detailed earnings and margin recovery story built on long term contracts and recurring revenue.

With accelerating demand from industries prioritizing workplace hygiene and safety, especially in healthcare and food processing, Vestis stands to benefit from robust, long-tailed recurring revenue streams, driving sustained top-line growth.

Read the complete narrative.

Curious what kind of revenue glide path and margin rebuild need to hold for that fair value to make sense? The narrative leans on a steady shift from losses to consistent profits, plus a future earnings multiple that assumes the market gains confidence again in execution. If you want to see exactly how those moving parts fit together, the full story connects every assumption back to that $8.00 number.

Result: Fair Value of $8.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you also need to weigh ongoing customer attrition risks and limited pricing room, which analysts highlight as real threats to any clean revenue and margin reset.

Find out about the key risks to this Vestis narrative.

Build Your Own Vestis Narrative

If you look at the numbers and come to a different conclusion, or simply enjoy testing ideas yourself, you can build a tailored Vestis story in just a few minutes using our Do it your way.

A great starting point for your Vestis research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Vestis has you thinking about what else might be worth your time, this is the moment to widen your watchlist before the next move passes you by.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.