Vestis Corporation - Vestis Corporation, spun off from Aramark in late 2023, is equal in size to UniFirst but less than a third of Cintas, making it a potential merger or buyout target [1] - The uniform industry remains fragmented despite years of consolidation, with Cintas as a potential buyer [1] - Several buyout firms have expressed interest in Vestis, but no firm offers are on the table [1] - Insiders have been actively buying Vestis shares in 2024, with nine insiders making 14 purchases, bringing their total holding to over 13% [9] - Institutional ownership of Vestis reached nearly 98% by late December 2024 [9] - Vestis pays a healthy dividend, less than 25% of its earnings, and has a solid balance sheet [20] OPKO Health - OPKO Health has numerous catalysts that could drive its share price up in 2025, including potential approvals for its key therapy, acquisitions, and normalization of its diagnostic business [11] - Analysts are optimistic about OPKO Health, with a consensus "Buy" rating and a projected 90% upside [11] - Insider activity in OPKO Health includes 24 purchases by seven insiders in 2024, making it the second most bought stock for the year [4] - However, the company has issued shares to raise capital, increasing the share count by more than 32%, and the $100 million share repurchase authorization may not be sufficient to offset the dilution [4] Greif, Inc - Greif, Inc is an industrial packaging company with a volatile share price but a solid bottom near $60, reinforced by insider buying at the low end of the range [12] - Insiders buying Greif shares include the CEO, CFO, and several directors [12] - Analysts view Greif as a deep value stock, with a consensus "Moderate Buy" rating and a potential upside of 10% to 20% [13] - Greif pays a dividend yield of 3.57% and has a price target of $78.67 [12] Institutional Activity - Institutions have been net buyers of shares in CQ1, Q2, and Q3 2024, with the largest shareholder being activist hedge fund Corvex Management, which owns more than 13% of the stock [2] - Institutional ownership of Greif is around 50%, with activity in 2024 aligning with buying at the low end and selling at the high end of the range [16] - Institutional activity in Q4 2024 is bullish, suggesting a potential rebound in the stock price [16] Industry Insights - The uniform industry remains fragmented, with Cintas as the industry leader and a potential buyer for Vestis [1] - Cintas is an example of a company capable of sustaining dividend payments, share buybacks, and self-funding growth [10] - Insider activity is significant in companies like Vestis, OPKO Health, and Greif, signaling higher-than-average conviction in the share price outlook [19]

Vestis Corporation (VSTS) shares soared 5.1% in the last trading session to close at $16.39. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.2% loss over the past four weeks.Vestis’ rally is primarily driven by optimism about strength in its business due to healthy growth in its customer base. Also, the company’s focus on enhancing workforce productivity, optimizing network logistics, as well as managing operational costs and m ...

I wrote about Vestis Corp. (NYSE: VSTS ) previously in August with a hold rating, as I was still not confident that VSTS had turned things around and that it should continue to trade at aI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], a ...

Financial Performance - Vestis generated revenue of approximately $2.8 billion in fiscal year 2024, with operating income of $158.0 million (5.6% of revenue) and net income of $21.0 million (0.7% of revenue)[34] - 94% of Vestis' total revenue in fiscal year 2024 came from its recurring rental business, while 6% was from direct sales[34] - Approximately 9% of the company's consolidated revenue and profit are generated from foreign denominated revenue and profit[341] - Each 1% increase in interest rates on the Term Loan Facilities would increase annual interest expense by approximately $12 million, with $1,163 million aggregate principal amount outstanding as of September 27, 2024[342] Customer Base and Market Presence - Vestis serves over 300,000 customer locations across the United States and Canada, with its top 10 customers accounting for less than 15% of total revenue[41] - The company serves over 95% of the largest metropolitan statistical areas in the United States and every province in Canada, enabling it to serve large, national customers[59] - The company delivers to over 300,000 customer locations and maintains long-term relationships with customers due to the quality of its services and products[60] - The company's customer base includes small family-owned operations and large corporations, with most customers served under multi-year contracts[44] Operations and Facilities - The company operates over 350 sites, including laundry plants, distribution centers, and manufacturing plants, supported by approximately 19,600 employees[31] - The company operates a network of over 350 facilities, including laundry plants, satellite plants, distribution centers, and manufacturing plants, supported by a fleet of service vehicles covering over 3,300 pick-up and delivery routes[53] - Approximately 60% of the company's uniforms and linens are manufactured in its two manufacturing plants in Mexico, which include 189,000 square feet of manufacturing capacity and a 107,000 square foot distribution facility[53] Leadership and Governance - The company's leadership team includes experienced executives recruited to lead Vestis as an independent, publicly traded company[32] - The company's Board of Directors is 60% from underrepresented groups, including 50% females, as of September 27, 2024[82] - The company's Board of Directors oversees ESG goals and objectives, supporting the implementation of ESG priorities and commitments[97] Products and Services - Vestis provides uniforms, workplace supplies, and contamination control products for industries such as manufacturing, healthcare, and food processing[30][42] Competition - Vestis faces competition from national, regional, and local providers, including Cintas Corporation and UniFirst Corporation[39] Growth Strategy - The company's strategy focuses on increasing revenue per stop through cross-selling, with current customers utilizing 30% to 40% of its full line of services and products[71] - The company is implementing targeted sales strategies to drive growth across high-value sectors, services, and products using enhanced data analytics[72] Cost Management - The company is focused on reducing operating costs through network optimization, workforce management, and merchandise inventory management[76][77][78] Sustainability and Environmental Initiatives - The company is committed to sustainability, minimizing fuel usage on routes, and reducing energy and water usage in laundry plant facilities[54] - The company has enhanced wash chemistry to conserve electricity, natural gas, and water, reducing washing machine run times, water temperatures, and rinse cycles[95] - The company uses telematics technology to reduce fuel usage by limiting idling through real-time, in-cab driver alerts[96] - The company does not anticipate any material expenditures for environmental remediation as of September 27, 2024[92] - The company actively manages sites requiring environmental remediation and monitoring in conjunction with regulators and partners[90] - The company invests in equipment, technology, and operating expenses for water treatment and waste removal to comply with environmental laws and regulations[92] Risk Management - The company is exposed to commodity price risks, primarily related to gasoline, diesel, and natural gas, but had no outstanding derivative arrangements as of September 27, 2024[344] Compliance and Ethics - The company's international private label garment manufacturers undergo annual third-party social compliance audits to ensure compliance with the Vendor Code of Conduct[94] Spin-off and Public Listing - The company completed its spin-off from Aramark on September 30, 2023, and began trading on the NYSE under the ticker symbol "VSTS" on October 2, 2023[33] Workforce - The company has approximately 19,600 employees, with 10,800 represented by labor unions as of September 27, 2024[81]

Vestis Corporation (NYSE:VSTS) Q4 2024 Earnings Conference Call November 21, 2024 8:30 AM ET Company Participants Michael Aurelio - IR Kimberly T. Scott - President and CEO Ricky T. Dillon - EVP and CFO Conference Call Participants Andrew Wittmann - Robert W. Baird Shlomo Rosenbaum - Stifel, Nicolaus & Company Harold Antor - Jefferies Ronan Kennedy - Barclays Oliver Davies - Redburn Limited George Tong - Goldman Sachs Andrew Steinerman - J.P. Morgan Operator Welcome to the Vestis Corporation Fiscal Fourth Q ...

Uniforms and Workplace Supplies Fourth Quarter and Fiscal 2024 Results November 21, 2024 Forward looking statements This presentation contains "forward-looking statements" within the meaning of the securities laws. All statements that reflect our expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements relating to future operations and financial performance and statements regarding our strat ...

Vestis Reports Fourth Quarter and Fiscal 2024 Results Provides Fiscal 2025 Guidance Fiscal 2024 Results • Revenue of $2.8 billion • Operating Income of $158 million or 5.6% of revenue • Adjusted EBITDA of $353 million or 12.6% of revenue • Operating Cash Flow of $472 million, up 83.6% year-over-year • Free Cash Flow of $165 million, up 13.2% year-over-year • Net leverage was 3.62x at the end of fiscal 2024 versus 3.95x at the end of fiscal 2023 • Net debt was $1.3 billion at the end of fiscal 2024, a declin ...

Luis Alvarez/DigitalVision via Getty Images Investment overview I give a hold rating for Vestis Corp. (NYSE:VSTS), as the business has yet to show tangible organic growth improvements so far. While I do appreciate the developments so far (improved retention rates and an improved sales team), I think it is too early to conclude that VSTS has managed to turn things around. Hence, I believe VSTS will continue to trade at a discount to peers in the near term. Business description VSTS is the second-largest prov ...

Vestis Corporation (NYSE:VSTS) Q3 2024 Earnings Conference Call August 7, 2024 10:00 AM ET Company Participants Michael Aurelio - IR Kimberly T. Scott – President and CEO Ricky T. Dillon – EVP and CFO Conference Call Participants Andrew Wittmann - Robert W. Baird Andrew Steinerman - J.P. Morgan Shlomo Rosenbaum - Stifel, Nicolaus & Company Stephanie Moore - Jefferies Ronan Kennedy - Barclays Bank Timothy Mulrooney - William Blair George Tong - Goldman Sachs Oliver Davies - Redburn Limited Operator Welcome t ...

Uniforms and Workplace Supplies ... Third Quarter 2024 Results August 7, 2024 Forward Looking Statements This presentation contains "forward-looking statements" within the meaning of the securities laws. All statements that reflect our expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements relating to future operations and financial performance and statements regarding our strategy for gro ...