NASDAQ:VITL—A High-Growth Stock Gearing Up for Its Next Upward Move.

Last update: Jun 18, 2024

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether VITAL FARMS INC (NASDAQ:VITL) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but VITAL FARMS INC has surfaced on our radar for growth with base formation, warranting further examination.

Evaluating Growth: NASDAQ:VITL

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:VITL has received a 9 out of 10:

The Earnings Per Share has grown by an impressive 286.36% over the past year.
The Earnings Per Share has been growing by 31.52% on average over the past years. This is a very strong growth
Looking at the last year, VITL shows a very strong growth in Revenue. The Revenue has grown by 23.83%.
Measured over the past years, VITL shows a very strong growth in Revenue. The Revenue has been growing by 34.63% on average per year.
Based on estimates for the next years, VITL will show a very strong growth in Earnings Per Share. The EPS will grow by 33.29% on average per year.
The Revenue is expected to grow by 19.04% on average over the next years. This is quite good.

Evaluating Health: NASDAQ:VITL

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:

VITL has an Altman-Z score of 15.35. This indicates that VITL is financially healthy and has little risk of bankruptcy at the moment.
VITL has a Altman-Z score of 15.35. This is amongst the best in the industry. VITL outperforms 97.83% of its industry peers.
VITL has a debt to FCF ratio of 0.24. This is a very positive value and a sign of high solvency as it would only need 0.24 years to pay back of all of its debts.
VITL has a better Debt to FCF ratio (0.24) than 95.65% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that VITL is not too dependend on debt financing.
VITL has a better Debt to Equity ratio (0.05) than 81.52% of its industry peers.
A Current Ratio of 3.10 indicates that VITL has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.10, VITL belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
A Quick Ratio of 2.66 indicates that VITL has no problem at all paying its short term obligations.
The Quick ratio of VITL (2.66) is better than 91.30% of its industry peers.

A Closer Look at Profitability for NASDAQ:VITL

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:VITL, the assigned 7 is a significant indicator of profitability:

VITL has a Return On Assets of 12.47%. This is amongst the best in the industry. VITL outperforms 91.30% of its industry peers.
With an excellent Return On Equity value of 17.55%, VITL belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.36%, VITL belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
The last Return On Invested Capital (12.36%) for VITL is above the 3 year average (3.76%), which is a sign of increasing profitability.
VITL has a better Profit Margin (7.48%) than 76.09% of its industry peers.
VITL has a better Operating Margin (9.28%) than 76.09% of its industry peers.
In the last couple of years the Operating Margin of VITL has grown nicely.
Looking at the Gross Margin, with a value of 35.68%, VITL belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:VITL?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:VITL currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, VITL also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 40.38, a Stop Loss order could be placed below this zone.

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

Check the latest full technical report of VITL for a complete technical analysis.

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.