Why NASDAQ:VITL Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Apr 23, 2024

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether VITAL FARMS INC (NASDAQ:VITL) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but VITAL FARMS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Assessing Growth Metrics for NASDAQ:VITL

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:VITL was assigned a score of 9 for growth:

VITL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 625.00%, which is quite impressive.
The Earnings Per Share has been growing by 31.52% on average over the past years. This is a very strong growth
The Revenue has grown by 30.30% in the past year. This is a very strong growth!
VITL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.63% yearly.
VITL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.23% yearly.
VITL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.03% yearly.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:VITL has earned a 8 out of 10:

An Altman-Z score of 10.54 indicates that VITL is not in any danger for bankruptcy at the moment.
VITL has a better Altman-Z score (10.54) than 97.80% of its industry peers.
The Debt to FCF ratio of VITL is 0.35, which is an excellent value as it means it would take VITL, only 0.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.35, VITL belongs to the top of the industry, outperforming 94.51% of the companies in the same industry.
VITL has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VITL (0.05) is better than 80.22% of its industry peers.
VITL has a Current Ratio of 3.00. This indicates that VITL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VITL (3.00) is better than 85.71% of its industry peers.
A Quick Ratio of 2.49 indicates that VITL has no problem at all paying its short term obligations.
VITL has a Quick ratio of 2.49. This is amongst the best in the industry. VITL outperforms 90.11% of its industry peers.

Assessing Profitability for NASDAQ:VITL

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:VITL was assigned a score of 7 for profitability:

VITL's Return On Assets of 9.31% is amongst the best of the industry. VITL outperforms 90.11% of its industry peers.
VITL has a Return On Equity of 13.29%. This is in the better half of the industry: VITL outperforms 69.23% of its industry peers.
The Return On Invested Capital of VITL (9.69%) is better than 85.71% of its industry peers.
The 3 year average ROIC (3.76%) for VITL is below the current ROIC(9.69%), indicating increased profibility in the last year.
VITL's Profit Margin of 5.43% is fine compared to the rest of the industry. VITL outperforms 69.23% of its industry peers.
VITL's Operating Margin of 7.06% is fine compared to the rest of the industry. VITL outperforms 70.33% of its industry peers.
In the last couple of years the Operating Margin of VITL has grown nicely.
VITL has a better Gross Margin (34.44%) than 85.71% of its industry peers.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:VITL has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, VITL also presents a decent setup pattern. Prices have been consolidating lately. Another positive sign is the recent Pocket Pivot signal.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of VITL

For an up to date full technical analysis you can check the technical report of VITL

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.